Brazilian and Argentine capital market regulators are working on the joint creation of a "regional passport" for cross-border investment fund trading, according to Valor Econômico.
The Brazilian Comissão de Valores Mobiliários, or CVM, and its regional peer, the CNV, reportedly seek to facilitate the simultaneous distribution of investment funds in both capital markets and expect to sign a preliminary agreement by the end of the year.
The idea is to allow funds established in Brazil to be offered also in Argentina, through an intermediary institution, and vice versa, reducing the bureaucracy to approve their distribution, as already happens in the passport processes funds in Europe and Asia, according to Daniel Maeda, IR manager at CVM.
The reported size of the investment fund industry in Brazil amounts to 4.5 trillion reais.
As of Oct. 5, US$ 1 was equivalent to 3.87 Brazilian reais.