Funds And Private Wealth Insights From Brazil

Author:Mr Mauricio Carmagnani, Renato Marques, Sabinah Clement and Jonathan Roney

At the end of September, our Brazil team led two breakfast discussions on global expansion, with a spotlight on funds and private wealth. Our panel of Intertrust experts from Brazil, the Bahamas, BVI and Cayman Islands were graciously joined by leading Brazilian investment fund and private wealth practitioners. Read on for key insights from each panel.

Alternative Investment Funds panel: Structuring Brazil funds for success

The panel and audience generally agreed that while the pace of regulatory reform has been challenging the changes are positive, improving upon existing framework and increasing transparency during the longest bull market in US history. This period of low volatility is creating a difficult market for start-up managers to differentiate themselves from lower-cost, less actively managed investments. Existing large managers are more likely to have the necessary infrastructure and service provider contacts to manage and afford implementation. It was noted that Cayman is a favoured jurisdiction due to the very fact that it is considered safe and well regulated. Cayman is at the vanguard of implementing new requirements and other jurisdictions will be following suit shortly; re-domiciling or establishing funds elsewhere for this reason alone was considered myopic. >The panel and audience agreed substance requirement headwinds would likely result in more back office functions performed locally. For example, Luxembourg's keeping of accounting books and records is considered integral to substance and Ireland requires directors to be residents. Clarity on this subject will develop following the forthcoming Brazil elections when potential reforms will become known. Click here for a detailed discussion summary, including panel responses to...

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