Experts criticize new FIDC rules and warn that a R$35 billion funding source will be cut off

Brazil’s National Monetary Council has introduced new rules prohibiting Receivables Investment Funds (FIDCs) from acquiring litigation and arbitration claims without a final, non-appealable judgment and a determined value, prompting warnings from industry participants that the restrictions could effectively shut down a R$35.2 billion litigation claims investment market, reduce liquidity for claimholders and push transactions into less regulated structures, despite the regulator’s stated objective of preventing fraud and improving transparency.

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