Legal Framework

An FII is a pool of funds intended to be invested in real estate ventures, as established in applicable regulations, with an unlimited period of duration market. It is regulated by Law No. 8668/93, CVM Instruction No. 472, and other applicable legal and regulatory provisions and is governed by its bylaws.

Please find below a (non exhaustive) list of important regulations applicable to FIIs and their shareholders.

Basic legislation

The Instructions/Resolution described below, where applicable:

  • CVM Instruction 472, of October 31, 2008, as amended: Makes provisions on the creation, administration, operation, offering of shares, and disclosure of information on FIIs.
  • CVM Instruction 555, of December 17, 2014, as amended: Makes provisions on the creation, administration, operation, and disclosure of information on investment funds.
  • CVM Resolution 175, of December 23, 2022, as amended: Provides for the constitution, operation and disclosure of information on investment funds, as well as the rendering of services for the funds.

Financial statements

The fund’s financial statements for the period ended will be drawn up at the close of its fiscal year (12 months). The fund’s accounting statements must be audited annually by an independent auditor registered with the CVM, subject to the rules that govern such activity.

  • CVM Instruction 516, of December 29, 2011, as amended: Makes provisions on the accounting rules applicable to the financial statements of FIIs.

Distribution of earnings

According to Law No. 8668/93, mentioned above, FIIs are required to distribute to its shareholders at least 95% of the earnings, ascertained on a cash basis according to an annual or semiannual balance sheet ended on June 30 and December 31 of each year. The following regulations make provisions on such distribution:

  • Official Letter CVM/SIN/ SNC/ No. 01/2014, of May 2, 2014;
  • Official Letter CVM/SIN/ SNC/ No. 01/2015, of March 18, 2015;
  • Law No. 11196/2005: Exemption from income tax on the distribution of earnings to individual shareholders.


The main regulations that make provisions on the offering of shares in FIIs are the following:

  • CVM Resolution 160, of July 13, 2022: Provides for public offerings of primary or secondary distribution of securities and the trading of the securities offered in the regulated markets.

Asset management

  • CVM Resolution 21, of February 25, 2021, as amended: Makes provisions on the professional management of securities portfolios.

CSHG also complies with the provisions of the following Anbima documents:

  • Anbima Code of Regulations and Best Practices for Asset Management, whose main purpose is to improve the fiduciary standards and promote the best market practices
  • Anbima Rules and Procedures of the Asset Management Code