SIF to undergo transformation. Into what?

“The stipulations of this law apply accordingly to the financial investment companies, as well.” This is one of the last paragraphs of the consolidated capital market law draft now debated by the National Securities Commission (CNVM). This means the financial investment companies will have to turn into one of the collective placement body types included in the law and will no longer benefit from special provisions, particularly because the new law will also abrogate the one establishing the SIFs back in 1996. So what has become of the special law to regulate these companies lately? Few people know the answer. “We need to have a consolidated capital market law, and the financial investment companies could not be left out of it. They are offered the possibility to turn into either collective placement bodies investing in securities or collective placement bodies,” Gabriel Miclaus, CNVM commissary said. The collective placement bodies investing in securities (OPCVM) are those that include investment companies besides the mutual funds currently operating on the market. The collective placement bodies on the other hand, about which the law does not say much, can be either closed investment funds or closed investment companies. ZF