Financial Market: Key News from August
1. BCB raises concerns over FIDCs
On Wednesday (2), the Central Bank of Brazil (BCB) expressed concerns over capital markets structures involving “multiple layers of investment funds”, which may make it more difficult to properly assess and map risks. According to the minutes of the latest meeting of the Financial Stability Committee (Comitê de Estabilidade Financeira – Comef), certain funds operate through chains structured across different levels, increasing the complexity of identifying investors’ underlying exposures. In this context, the BCB highlighted Credit Rights Investment Funds (Fundos de Investimento em Direitos Creditórios – FIDCs), which continued to grow rapidly in the last quarter and have been increasing their share of broad credit as a source of corporate financing. The BCB also highlighted the significant connections between these funds and institutions under its supervision, both through the assignment of assets to FIDCs and through investments in their units. The BCB continues to monitor the matter in light of the growth of these structures and their increasing interconnectedness with the Brazilian Financial System (SFN).
Central Bank views FIDCs with concern
2. BCB orders liquidation of Trustee and Banvox, linked to a former Banco Master shareholder
On Thursday (3), the BCB ordered the extrajudicial liquidation of Banvox Distribuidora de Títulos e Valores Mobiliários Ltda. (Banvox) and Trustee Distribuidora de Títulos e Valores Mobiliários Ltda. (Trustee), both controlled by Maurício Quadrado, a former shareholder of Banco Master. According to the BCB, the measure was adopted due to “serious violations of the legal rules governing the institutions’ activities”. Both securities distributors were part of a prudential conglomerate classified within the “S4” segment and had limited relevance to the SFN. Trustee and Banvox had also been mentioned in investigations conducted as part of Operation Carbono Oculto, while Maurício Quadrado was targeted by Operation Compliance Zero, which is investigating suspected irregularities related to Banco Master. The latest measures bring to 20 the number of financial institutions placed into extrajudicial liquidation by the BCB since the end of 2025, against a backdrop of increased supervisory scrutiny of institutions and other participants in the financial ecosystem.
BC liquidates Trustee and Banvox, companies linked to a former partner of Banco Master
Central Bank decrees extrajudicial liquidation of Banvox and Trustee
3. New Pix rules come into effect
On Tuesday (1), new rules governing Pix’s Special Refund Mechanism (Mecanismo Especial de Devolução – MED), created by the BCB to facilitate the recovery of funds in cases of fraud, scams and other crimes, came into effect. The main change is the expansion of fund-tracing capabilities. Previously, the mechanism allowed funds to be blocked and returned only from the account that originally received the disputed Pix transfer. Under the so-called “MED 2.0”, the system can now track the path taken by the funds even when they are transferred to other accounts, allowing amounts available in subsequent recipient accounts to also be blocked and returned to the victim. The change seeks to increase the effectiveness of the MED in response to the practice of rapidly transferring funds across different accounts in order to make them more difficult to block and recover. Under the enhanced mechanism, participating institutions will have access to information on the flow of funds between accounts, allowing available amounts to be identified throughout the chain of transfers. The mechanism does not guarantee the full recovery of funds, which remains dependent, among other factors, on the availability of amounts that can be blocked, but is intended to increase victims’ chances of recovering their funds. The MED remains limited to cases of fraud, scams or operational failures and does not apply, for example, to commercial disputes or transfers made to the wrong recipient as a result of an error by the user.
BC liquidates Trustee and Banvox, companies linked to a former partner of Banco Master
Central Bank decrees extrajudicial liquidation of Banvox and Trustee
4. BCB accelerates the updating of credit information in the SFN
On Wednesday (26), the BCB announced that it had begun providing more timely information on credit transactions entered into within the Brazilian Financial System. With the implementation of BCB Resolution No. 413/2024 and BCB Normative Instruction No. 530/2024, events such as loan originations, assignments, portability transactions, installment payments and settlements are now recorded on a daily basis and reported to the Credit Information System (SCR) within up to five business days.
In practice, information that previously could take up to 45 days to appear in credit bureau queries is now updated within up to seven business days, enabling individuals and companies to have their credit assessments based on more recent data. Initially, the update is available only through the credit bureau, while the BCB works to implement the same process in Registrato.
The Central Bank is making the information available at the credit bureau more timely
5. CVM Board approves new amendment to cooperation agreement with ANBIMA on investment fund supervision
On Thursday (3), the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários – CVM) announced the approval of the second amendment to the technical cooperation agreement entered into with the Brazilian Financial and Capital Markets Association (Associação Brasileira das Entidades dos Mercados Financeiro e de Capitais – ANBIMA) for the supervision of the investment fund industry. Originally entered in September 2024, the agreement seeks to leverage ANBIMA’s self-regulatory activities to optimize the work of both institutions and increase the efficiency of supervision of regulated markets. The new amendment reinforces the CVM’s supervisory and enforcement responsibilities and consolidates the respective roles of the two institutions in overseeing investment funds and their service providers regulated under CVM Resolution No. 175. Among the main changes are the inclusion of Private Equity Investment Funds (Fundos de Investimento em Participações – FIPs) within the scope of the cooperation and the expansion of activities relating to Financial Investment Funds (Fundos de Investimento Financeiro – FIFs). The agreement also introduces a new annex governing the exchange of information on the portfolios of FIFs holding assets abroad. In addition, ANBIMA will support the CVM in collecting data used for the annual reporting of the investment fund statistics survey conducted by the International Organization of Securities Commissions (IOSCO). The agreement will remain in effect for ten years from the date of its publication in the Brazilian Federal Official Gazette (Diário Oficial da União) and may be extended once.
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