FIDC and FIAGRO
Structuring of receivables investment funds and funds investing in agribusiness production chains.
FIDC and FIAGRO have purposes and rules that must be analyzed separately. The FIDC structures investments in receivables, with attention to the eligibility, ownership and risks of the receivables. FIAGRO relates to agribusiness production chains and may involve different assets, depending on its classification. CVM Resolution 175 and its annexes guide the formation, investment policy and duties of participants in each category.
Legal structuring involves the regulations, classes of units, asset acquisition contracts and the division of functions among service providers. For receivables, attention should be given to supporting documentation, assignment criteria, collection procedures and the possibility of conflicts involving originators and related parties. Subordination and guarantees should be understood as risk allocation mechanisms, without eliminating the possibility of losses. The analysis of tax aspects and offering rules complements the design of the vehicle and its relationship with unitholders.
Our work
- Regulations and investment policies for FIDC and FIAGRO
- Assignment contracts and legal criteria for receivables
- Unit structure, guarantees and governance of service providers
Are FIDC and FIAGRO the same type of fund?
No. They are categories with their own purposes and rules, even though there may be points of contact between the assets and the structures. The classification must start from the portfolio and the regulations.
Editorial review: