Lien: New Functionality Allows Fund Share Registration

Optional

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New delivery promotes operational ease for the registration of lien and encumbrance contracts for fund shares

As of January 2, 2023, B3 will enable in the Guarantee Contract Registration Module, the possibility of pledging as collateral fund shares registered pursuant to CVM Resolution No. 174 dated December 5, 2022.

The possibility of creating liens and encumbrances on registered securities, in particular fund shares, began to be expressly foreseen upon the publication of the resolution. This will bring the necessary legal certainty to the formalization of those guarantees in the B3 environment.

Project Tags:

OTC

Completed

DCM

Product benefits

Greater efficiency

The system used to register lien and encumbrance contracts for fund shares is the same as that already used for other OTC instruments, thus promoting integration and agility in operational processes.

Safety

Blocking the asset at the registration entity minimizes the risk of the guarantee being given in duplicity.

Unified publicity

The same process and format for requesting a certificate on the existence of liens and encumbrances for all OTC-registered contracts.

Further details about the new functionality

More on the Guarantee Contract Registration Module

This module allows participants to register, amend, change, extinguish and query information relating to the constitution of liens and encumbrances on fund shares registered under guarantee contracts.

Additionally, in the process for the effective constitution of liens on fund shares, the approval of the entity responsible for registering this asset will be required, except in cases of distribution on behalf and by order.

To comply with publicity and effectiveness principles before third parties, the existence of liens and encumbrances on fund shares can be verified by requesting a Lien and Encumbrance Certificate and/or a copy of the Guarantee Contract.