The Brazilian Monetary Council (CMN) has published a regulation that negatively impacts the legal claims market in Brazil.
CMN Resolution 5.343/2026 amends Resolution 2.907/2001 and prohibits Receivables Investment Funds (FIDCs) and Funds of FIDC (FIC-FIDCs) from investing in claims arising from lawsuits or arbitration proceedings until such claims possess definitive liquidity.
The rule enters into force in two stages. The ban on new investments applies starting October 13, 2026. Obligations regarding existing portfolios begin on January 4, 2027. Funds have just over two weeks to finalize ongoing transactions.
See below 5 of the key impacts on legal claim FIDCs:
1. FIDCs and FIC-FIDCs Can No Longer Invest in Illiquid Judicial Claims. Direct or indirect investment in rights or expectations of rights arising from lawsuits is prohibited until the claim is liquid, certain, and enforceable on a definitive basis.
The resolution defines three cumulative requirements: (i) the decision recognizing the right in the merits phase becomes final and unappealable (*trânsito em julgado*); (ii) the decision on the quantification of the claim (*liquidação*) becomes final and unappealable, when such a step is necessary to establish the value; and (iii) the expiration of the deadline to challenge the enforcement of the judgment or to file objections to execution without such challenges being raised, or—if raised—the final and unappealable resolution of the decision adjudicating them.
2. Specific Rule for Arbitration. An arbitral claim requires an award—whether partial or final—that recognizes the right and establishes the amount due, either on its own or in conjunction with other awards issued during the proceedings.
Furthermore, the 90-day period stipulated in Article 33, § 1, of Law No. 9.307/1996 must have elapsed without the filing of an action to declare the award null and void. If such an action has been filed, the decision dismissing the claim or terminating the case without a ruling on the merits must have become final and unappealable (*trânsito em julgado*).
3. New Pricing Framework for Existing Portfolios. Funds will not be required to sell assets already acquired but must comply with minimum requirements.
The valuation methodology must be consistent and subject to independent verification; pricing based exclusively on the internal assumptions of the administrator, manager, or advisor is prohibited.
4. Requirement for Informational Transparency. Disclosure must occur at least monthly, in a structured electronic format that allows for period-over-period comparison.
Required information includes: identification of the fund, administrator, and manager; the arbitration case or proceeding and the respective tribunal or chamber; assignors, assignees, and related parties; the date and instrument of the assignment and any known prior assignments; the value and share of the claim held by the fund; and, in the case of claims against the Public Treasury, the portfolio composition by debtor government entity.
5. Impacts on the Legal Claims Market in Brazil. (i) Managers of legal claim funds must determine which transactions currently under negotiation can be acquired by October 13.
(ii) Regulators, investors, administrators, and managers of FIDCs and FIC-FIDCs must establish a pricing standard for illiquid judicial and arbitral assets applicable to this type of fund.
(iii) Since the resolution applies only to FIDCs and FIC-FIDCs, buyers of this type of asset will use other legal vehicles to acquire receivables arising from lawsuits and arbitration proceedings.
The new regulation from the National Monetary Council (CMN) effectively renders investment in legal claims via FIDCs and FIC-FIDCs unfeasible. It will be up to managers and investors, both domestic and foreign, to identify alternatives for allocating capital to this segment, which holds billion-real potential in the country.
