Despite the intervention of the BC (Central Bank), which decreed the extrajudicial liquidation of Reag, the investment funds managed by the company are not automatically closed.
The monetary authority acted on Thursday (15), pointing out violations of SFN (National Financial System) rules.
Funds are structured with a legal entity other than the financial institution, this rule exists to protect investors’ money. In other words: Reag’s money is one thing, the investors’ money is another — value “segregated” in the funds.
However, as Reag no longer operates, the liquidator must call a General Meeting with the shareholders to choose a new admin to the bottom.
Reag’s liquidator, appointed the day before, is He worked in the same role during part of the Bamerindus Bank liquidation process.
Regarding investors, the money of fund clients is protected by asset segregationone of the pillars of the fiduciary regime, explains Patrícia Palomo, economist at Arau Consulto.
Therefore, the liquidation of Reag does not automatically imply loss or confusion of the resources invested in the funds under its management.
The regulatory design prioritizes the continuity of the fund, with the replacement of the fiduciary administrator by another qualified institution, she adds. “The closure of the fund or class of shares only occurs if it is decided at a meeting of shareholders or if, for operational reasons, it is not feasible to maintain it.”
Regarding the choice of the new fund administrator, the meeting must be called within fifteen days. If this does not happen, shareholders representing at least 5% of the fund’s net assets can call within ten days, according to the economist.
For Henrique Machado, former director of the CVM (Securities Commission), the greater impact This is the time that the fund will be without an administrator, and may, as a result, incur some losses.
Reag managed several investment funds, both real estate and customized investments. The manager is formed by Reag Asset, Reag Seguros and Reag Weatlh.
What happens to clients of funds managed by Reag?
Reag’s investment fund clients should not suffer a direct financial loss, as the liquidation was on the manager, explains Paulo Feldmann, professor at FIA Business School.
A consortium group is made up of a certain number of quotas. Each group has its own assets and is autonomous in relation to other groups and the consortium administrator.
According to information from the Central Bank, the loss of money invested depends on the financial situation of the group to which the consortium member belongs, to be determined by the liquidator.
Unlike the case of the Master bank, there is no credit fund — such as the FGC (Credit Guarantee Fund), for example — that guarantees the operations carried out by foreign exchange brokers or investment funds.
Can clients withdraw money invested in funds?
With the liquidation of the administrator, the possibility of the investor withdrawing the money depends on the type of product, explains Palomo.
Nos open-end fundsthe shareholder may request redemption in accordance with the rules and deadlines set out in the regulations, although there may be a temporary suspension of redemptions for operational or liquidity reasons.
We already closed-end fundsthere is no right of redemption at any time, so the exit from the investment occurs through amortization, closure of the fund or negotiation on the secondary market, when applicable.
The legal structure of an investment fund is designed to prevent any communication between the fund’s net assets, which belong exclusively to the shareholders, and the assets of the institution that manages it.
Regarding fund portfoliosthese remain preserved and segregated from Reag’s assets, explains the economist. The assets continue to belong to the fund and are not part of the assets of the liquidated institution.
What may occur is an “operational transition”, with the migration of bookkeeping, controls and other routines to a new fiduciary administrator, without this implying a change in the composition of the portfolio.
What if no one agrees to manage the investment fund?
Still according to the economist, if no institution agrees to assume the fiduciary administration of the funds, the regulations provide for a path of orderly liquidation.
In this situation, the meeting of shareholders may decide to liquidate the fund or class, electing an administrator solely to conduct this process.
If, within a period of up to thirty business days from the publication of Reag’s extrajudicial liquidation act, there is no election of an administrator for this purpose, the Central Bank may appoint an institution to process the liquidation of the fund, explains Palomo.
Understand Reag’s liquidation
Funds managed by Reag Trust structured fraudulent operations with Banco Master between July 2023 and July 2024, according to information provided by the Central Bank to the TCU (Federal Audit Court).
In the report sent to the Court, the monetary authority reported that the operations were in disagreement with the rules of the National Financial System, presenting serious flaws in risk, credit and liquidity management.
The liquidation of Reag occurred after the Federal Police, as part of Operation Compliance Zero, contacted businessman João Carlos Mansur.
The company has also been the target of investigation due to suspected links to money laundering schemes uncovered in Operation Hidden Carbon, which investigates the relationship between the fuel sector, the PCC and financial companies.
In a note, the monetary authority informed that it will continue to take all appropriate measures in relation to Reag Trust to determine responsibilities within the terms of its legal powers.
“The result of the investigations may lead to the application of sanctioning measures of an administrative nature and communications to the competent authorities, subject to the applicable legal provisions. Under the terms of the law, the assets of the institution’s controllers and former administrators are unavailable”, says the statement from the Central Bank.
