CNVM relaxes regulations for mutual fund advertising and distribution

The National Securities Commission (CNVM) had given the go-ahead for the distribution of mutual funds through distribution agents and by phone, and loosened regulations on fund advertising. The main winners are independent managers, which are not part of banking groups and for which fund sale and advertising involved significant financial efforts. However, they do not believe that the new rules will unfreeze their sales. The distribution agent is the main change CNVM brings to the way mutual funds are sold. Independent managers often complain banks first sell their own funds. Through distribution agents, independent managers have the chance to cut their dependence on banking distribution. Nevertheless, managers are not confident they will manage to spur their sales through distribution agents. Another important change is the relaxation of legal stipulations regarding mutual fund advertising. Whereas until now the ad had to be approved by CNVM, from now on the representative of the company's internal control department will be able to decide whether the ads comply with the law.