Simplifying FIFs: Why Less Can Mean More Transparency, According to the CVM
The Brazilian Securities and Exchange Commission (CVM)’s proposal for simplifying FIFs has reignited a crucial discussion in the financial market: how to ensure transparency without overwhelming investors with unnecessary data. In a recent Valor Econômico article, PG Law partner Carlos Portugal Gouvêa examined the potential impacts of this initiative and stressed the importance of communication that is clearer and truly useful to investors.
Financial Investment Funds (FIFs) pool resources from various investors to allocate them across different asset classes, such as equities, fixed income instruments, foreign exchange and derivatives. Because these funds attract a wide range of investor profiles, the way information is disclosed is fundamental to ensuring that investors can properly understand risks, costs and strategies.
According to Carlos Portugal Gouvêa, simplifying FIFs is a coherent step in today’s market environment. He notes that the sheer volume of available data does not always translate into transparency. In many cases, excessive information creates confusion and distances less-experienced investors. “A smaller amount of information that is fully understandable to the investor is far more valuable than too much information that ultimately confuses the public,” he explains.
This perspective aligns with a global trend: prioritizing qualified, objective and investor-focused information. As specialists point out, simplifying FIFs does not mean reducing oversight or compromising safety. Instead, it involves reorganizing the flow of disclosures to make them more efficient, digestible and aligned with actual investor needs.
Moreover, the CVM’s proposal could strengthen trust between the market and its participants by promoting clearer communications and encouraging decision-making based on relevant data, rather than on a mere abundance of technical reports.
To learn more about the proposal and read the full analysis from industry specialists, access the full Valor Econômico article at the link provided.
https://valorinternational.globo.com/markets/news/2025/11/12/cvm-may-let-mutual-funds-delay-portfolio-disclosure-for-a-year.ghtml