The CVM’s transparency resolution came into force on January 1, and has brought profound changes to the role of investment advisors and entities related to the world of digital assets. The requirement for greater organization and details of the revenues paid to investors are the main impacts observed. Those wishing to participate in tokenization as brokers or investment advisors need to pay close attention to the impacts of CVM’s transparency resolution. Depending on the work model of the advisory firm and its principles, the choice needs to be more cautious, so that it can take advantage of all the growth in the digital asset market.
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What the CVM’s New Transparency Resolution Says
The CVM’s new transparency resolution says that investment brokers, along with their intermediaries, must disclose their income from investments obtained by interested parties. Due to the increased accessibility of information related to investments, the resolution has been characterized as a “transparency resolution.” The main objective of the transparency resolution is to eliminate possible conflicts of interest and provide clarity for all the work of those involved in this area. So, in order to provide all these points, the resolution determined three rules to fulfill these requirements:
- The creation of a website with details of the salaries of professionals in these institutions;
- Disclose the professional’s and institution’s commission percentages before the client accepts the deal;
- Disclosure of a report every quarter on the institution’s income from investor investments.
All of these requirements contribute to the objective of the resolution and present challenges for institutions, especially considering the operational difficulties they face. Therefore, those wishing to prepare to become an investment advisor need to add these requirements to their studies before fully immersing themselves in the challenges and growth potential of the field.
Remuneration models: Fee versus Commission
The two main remuneration models for investment advisors are fee-based and commission-based. While the former establishes an annual fee on the amount as a form of remuneration, the commission-based model uses commissions of different amounts on the various digital assets available. The CVM’s new transparency resolution directly affects both types of remuneration, but the commission model will certainly feel the greatest impact due to its variability in remuneration. Whereas the fee-based model already determines a remuneration rate in advance, the commissioned model is the one that will suffer most from the transparency resolution due to the variability of commissions earned on different digital assets. In addition, the requirement for more detailed revenue makes the whole process longer, which requires brokers and their intermediaries to be much more careful when using this remuneration model. For this reason, having the whole scenario offered by BLOCKBR’s Whitelabel platform is an excellent choice for providing the security and practicality of offering tokens in the current context!
Impact on Investor Relations: Transparency and Trust
With the CVM’s new transparency resolution, transparency and trust between those making the offers and investors are the first things to stand out, since the requirement to detail the forms of remuneration is the main change. In this way, those wishing to start out in the market can be less insecure, since they will have access to the way they are remunerated. Considering that both new and old investors will have contact with the blockchain system due to the great rise in the tokenization of assets, it is remarkable how the trend of insecurities shows a very large downward potential. As a result, it is expected that various markets marked by uncertainty and fear, such as crypto, will be more sought after. The entire role played by the blockchain system has made it possible to create various options in the token universe, such as tokenized funds. Through this creation, therefore, it has been possible for different sectors of the financial market to change the way they see how the token has established itself in the current era and the changing trends it brings, especially issues related to decentralization and trust.
The Changing Role of the Investment Advisor
The need for increasingly clear and detailed communication is one of the main changes for investment advisors as a result of the new CVM transparency resolution. In this way, anyone wishing to become a relevant professional in the area needs to consider scenarios of interactions with investors demanding greater detail about the investments on offer. Observing the popularity of certain investments is an activity that will become increasingly frequent, and will require even greater caution on the part of investment advisors. Possibilities such as the Ethereum ETF and Bitcoin ETF, for example, are points that cannot go unnoticed by advisors, as they are options that introduce many novice investors to the world of digital assets. All of this has been made possible by the spread of the digital economy revolution that is the tokenization of assets. With all the technological and process improvements that have been brought about, the economy has undergone transformations that have had an impact and will continue to change many of the configurations that we know about the current financial market.
What impacts have brokerages suffered from the CVM’s new transparency resolution?
With the CVM’s transparency resolution, both investment brokers and their intermediaries face the requirement for greater organization of the data related to their clients’ remuneration. It’s no wonder, then, that the challenges of implementing the changes have been made public by some companies. This is why companies are looking for increasingly suitable environments to publicize the offers available to them. The BLOCKBR Whitelabel platform is the best choice for you to have a suitable structure for offering your digital asset with the highest possible quality and security, as our base is designed in compliance with CVM 88 and we use blockchain.
CVM Transparency Resolution: A New Standard for the Investment Market
The CVM’s transparency resolution played a fundamental role in bringing about a new standard, based on increased reliability between those who offer digital assets and those who obtain them. That’s why the migration to tokenization is becoming a mandatory scenario for those who want to take advantage of the financial market, a change that can easily be made by creating your BLOCKBR account.
Migrate to tokenization with BLOCKBR infrastructure, Access Funding with BLOCKBR Plugged-in Investment Advisors.
The unlocking of the capital market, giving access to new types and structures of investments through tokens, is bringing a universe of opportunities every day. Blockchain technology is an environment of high security and transparency, as well as being a backdrop for the creation of new operating models.
To understand which tokenization model and infrastructure you can use in your operations, you just need to understand the opportunities you can take on, whether as a structurer, originator or distributor/investor.
Become an investment advisor for digital assets (structured tokens) through BLOCKBR. You can also be an asset structurer and use our entire risk analysis, legal, technological and commercial infrastructure for distribution with Station or, if you prefer, just raise tokens by investing in your operations or RWA assets. Count on us.
