THE Securities and Exchange Commission (CVM) went public this last Thursday (27), and gave his version of the decision regarding the “MXRF11 case“. In the entity’s argument, an FII cannot distribute dividends if it presents an accounting loss in the period. However, the CVM ruled out that its understanding will affect the real estate fund industry.
In this regard, the municipality said that the decision of the collegiate regarding the MXRF11 involved a specific case, thus discarding the thesis that every market would be harmed.
CVM says other funds may be affected by its decision
In fact, in the entity’s understanding, the non-distribution of dividends “may apply to other real estate investment funds that have similar characteristics to the case analyzed“.
Another aspect highlighted by the CVM in its statement was the guarantee of “discretion to define the amounts to be distributed to shareholders”, said the entity.
Thus, the most prominent point in the CVM’s argument is that in financial statements funds, they “properly recognize the segregation of values distributed between income and capital amortization”.
Therefore, the CVM maintained its position and will not reverse the decision of its collegiate. Allegations that this decision would set a precedent harmful to the FII industry was discarded by the entity.
The MXRF11 said it complies with all legislation
At the relevant fact published on Tuesday (25), the administration of MXRF11 highlighted that “it has always adopted, for the distribution of the fund’s earnings, a procedure that meets, ipsis litterisguidance and understanding of the technical areas of the CVM in effect until then”.
In this case, the manager of structured funds at XP Asset Management, André Masetti, told Infomoney that “the funds were authorized to disregard the mark-to-market (daily variation of the portfolio) in the distribution of dividends to shareholders”.
In the manager’s view, “the fund would not need to compensate for the portfolio’s accounting loss and could continue passing on the returns to investors”.
understand the case
Regarding the MXRF11 financial statements, the CVM said that the fund was distributing dividends above accounting profit, claiming that the FII should not distribute income.
However, MXRF11’s argument was that the fund was distributing on a cash basis, as Law 8668 itself requires FIIs to distribute 95% of their profits.
In view of this, in the opinion of the CVM, the payment of excess cash profit, as the MXRF11 was doing, would increase the fund’s accounting loss. In this case, the autarchy said that instead of distributing dividends, the MXRF11 should make an amortization.