Extrajudicial Liquidation of Banco Master: Impacts on Investment Funds and Next Steps for Unitholders
The extrajudicial liquidation of Banco Master and of Master Corretora de Câmbio, Títulos e Valores Mobiliários (CCTVM) has had significant repercussions across the financial market, particularly among unitholders of the 55 investment funds fiduciary-administered by the institution. Recent coverage by Valor Econômico consulted PG Law partner Carlos Portugal Gouvêa to clarify the immediate impacts and the next steps following the liquidation decree.
According to Carlos, the extrajudicial liquidation does not automatically imply the termination of the funds. Instead, it means that the bank is no longer able to perform the essential administrative duties. This interruption requires investors themselves to act in a coordinated manner to ensure continuity of management. He explains that “unitholders holding 5% of a given class may call a meeting to elect a new administrator,” as provided by current regulations issued by the Brazilian Securities and Exchange Commission (CVM).
Applicable rules establish that, when the original institution becomes unable to continue providing services, the funds must either migrate to new administrators or, if that is not feasible, begin the termination process. This decision must be handled swiftly to avoid compromising governance and the preservation of investors’ assets.
Carlos further emphasizes that even in scenarios where fund liquidation becomes necessary, appointing a new administrator remains essential. This professional will be responsible for conducting the process transparently, complying with CVM regulations, and safeguarding the interests of unitholders.
The situation brings important warnings to the market: the relevance of strong governance, the need for ongoing investor diligence, and the strategic importance of fiduciary administration in protecting collective assets. The extrajudicial liquidation of Banco Master underscores how regulatory decisions may require swift mobilization and active participation from unitholders.
For more details on the case, the full report is available on Valor Econômico at:
https://valor.globo.com/financas/noticia/2025/11/19/fundos-de-investimento-do-grupo-devem-ter-novo-administrador.ghtml