What changes with CVM Resolution 160?

In July this year, the Brazilian Securities and Exchange Commission (CVM) issued Resolution 160, which represents a new regulatory framework for public offerings and determines that all offerings must now be registered with the CVM.

These new rules come into force on January 2, 2023, changing the rules that are currently established by CVM Instruction 400 (public offerings of securities) and CVM Instruction 476 (public offerings of securities with restricted efforts).

Offerings that are in progress on such date will be governed by the rules in force on the date that the offering registration request was filed, for those carried out pursuant to the terms of ICVM 400, or on the date on which there was the communication of the start of the offering, for those carried out pursuant to ICVM 476.

A first glance at such new rules may cause surprise, especially for investors and issuers accustomed to public offerings of restricted efforts (ICVM 476), which until then had been exempted from prior registration with the CVM.

Patience, sine everything that is good can get better! The new rules introduced by CVM Resolution 160 simplified and brought more agility to transactions in the capital markets.

In relation to the impact for issuers that base their securities offerings under ICVM 476, we have prepared below a summary table of the main changes: