Board Decision Authorizes Contractual Provision for Payment in Case of Dismissal Without Cause; Additional Rules Also Established
In a unanimous decision, the Board of the Brazilian Securities and Exchange Commission (CVM), during a meeting held on April 1, 2025, approved the possibility of including a clause in the regulations of Real Estate Investment Funds (FIIs) aimed at qualified or professional investors, allowing for discontinuation compensation to be paid to asset managers in cases of dismissal without cause.
Additionally, by majority vote, the Board resolved the following points:
- Prohibition of Management Fees Post-Dismissal: It was established that management fees may not be charged for periods following the manager's dismissal.
- Allowance of Performance Fees Post-Dismissal: The Board approved the possibility for the dismissed manager to receive performance fees, subject to applicable conditions.
- Limits and Conditions for Discontinuation Compensation: Limits and conditions were defined for the payment of discontinuation compensation, where applicable.
For detailed information, please refer to Board Meeting Report No. 10, dated April 1, 2025. The full meeting minutes, including additional information and the votes of the Board members, will be published shortly.
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