The Securities and Exchange Commission (CVM) has expanded the list of valid certifications for professionals to become portfolio managers. The measure was edited on Tuesday (13) and goes into effect on October 3.
Before, it was necessary for the professional to have one of the following certifications:
- CGA (Certification of Anbima Managers), from the Brazilian Association of Financial and Capital Market Entities (Anbima);
- CFA (Chartered Financial Analyst) level 3, CFA Institute certification;
- Exams 1 and 2 of the Final Level, an international certification program for investment professionals organized by any of the members of the ACIIA (Association of Certified International Investment Analysts).
Now, the CGE (Certification of Anbima Managers for Structured Funds) has been added to the list. For this, the CVM edited resolution 167, which included Anbima’s second certification in the list of exams accepted for portfolio managers.
What is CGE certification
Until then, CGE enabled professionals to work with third-party asset management only in the structured products industry. With the certification, the professional can also be a manager of FIDCs (Investment Funds in Credit Rights), FIIs (Real Estate Investment Funds), FIPs (Participation Investment Funds) and index funds.
It is a mandatory certification for those who hold positions with decision-making power to buy and sell the financial assets that make up the portfolios of these investment vehicles, according to Anbima, and it was not accepted for the purposes of accreditation with the CVM — which has just changed, with the edition of resolution 167.
The CVM said that the new resolution does not require a regulatory impact analysis (AIR), “because it is a normative act of low impact”, and that the change was not submitted to a public consultation “because it deals with a specific and punctual normative change, limited impact”.
The CVM resolution that provides for the professional exercise of securities portfolio manager is No. 21, of February 25, 2021. Registration in the asset manager category authorizes the management of a securities portfolio, including the application of financial resources in the securities market on behalf of the investor.
In order to obtain authorization from the CVM, the portfolio manager must, in addition to certification, fulfill certain requirements such as:
- Live in Brazil;
- Have higher education;
- Have an unblemished reputation;
- Not be disqualified or suspended for the exercise of a position in financial institutions and other entities authorized to operate by CVM, Central Bank, Superintendence of Private Insurance (Susep) or National Superintendence of Complementary Pensions (Previc).
How to get CGE certification
To obtain the CGE certification, the professional must have the CFG certification (Anbima Certification of Fundamentals of Management), the CFA (Chartered Financial Analyst) or the CAIA (Chartered Alternative Investment Analyst) and pass a test.
The exam has 45 questions and lasts 2h30, and to pass it is necessary to obtain at least 70% of correct answers (32 questions). The exam questions cover 8 areas of knowledge related to the universe of structured product management, according to Anbima:
- Property investments
- private equity
- Securitization of receivables
- index funds
- Investments abroad
- Performance evaluation
- Risk management
- Legislation, regulation and taxation
The certification test costs BRL 550 for professionals from companies associated with Anbima and BRL 650 for others (these amounts were respectively BRL 573 and BRL 688 until June, when Anbima decided to reduce the price of all its exams by up to 30%).