The structuring of Credit Rights Investment Funds (FIDCs) is a process that involves multiple stakeholders and a complex operational framework. Rodrigo Balassiano, an expert in the field, emphasizes that coordinated action among the manager, administrator, and custodian is essential for the fund’s performance, security, and regulatory compliance. In this context, understanding the responsibilities of each role is crucial for investors and participants in the structured credit market.
The Role of the Manager in Structuring FIDCs According to Rodrigo Balassiano
At the initial stages of FIDC structuring, the financial manager plays a central role in strategic decision-making. This professional is responsible for identifying target assets, assessing the quality of the credit rights, and establishing investment policies in accordance with the fund’s regulations. According to Rodrigo Balassiano, thorough risk analysis and the ability to anticipate scenarios are key to ensuring the manager can maintain both profitability and portfolio strength.
Additionally, the manager is directly involved in defining cash flows, managing default rates, and supervising the eligibility criteria for acquired receivables. This role demands technical expertise, critical judgment, and full alignment with the administrator’s guidelines and the requirements of the Brazilian Securities and Exchange Commission (CVM).
The Administrator’s Role in FIDC Governance
While the manager focuses on the financial and operational aspects of the portfolio, the administrator assumes the fund’s legal and institutional responsibilities. According to Rodrigo Balassiano, this party is formally accountable to regulatory bodies and is primarily responsible for the FIDC’s establishment, maintenance, and governance. The administrator also ensures compliance with the fund’s bylaws and contractual and tax obligations.
The administrator manages communications with shareholders, organizes financial statements, and monitors the manager’s performance—having the authority to intervene in cases of policy breaches. Their role is fundamental to ensuring transparency and integrity within the fund, thus mitigating legal and operational risks.
The Custodian and Asset Safeguarding
Another key player in the structuring of FIDCs is the custodian, whose main function is to safeguard and oversee the fund’s assets. Practically speaking, the custodian registers, validates, and tracks the acquired receivables, ensuring they are properly formalized and meet established criteria. Rodrigo Balassiano explains that the custodian’s role is essential to enhancing asset credibility and traceability.
This agent also performs regular reconciliations between recorded values and actual cash flows, in addition to supporting audit and compliance processes. Their independence and technical capability reduce the risk of fraud and accounting inconsistencies—factors that directly affect investor confidence.
Integration Among Stakeholders and Best Practices in Structuring
The efficient structuring of a FIDC depends on the joint and coordinated efforts of the manager, administrator, and custodian. To achieve this, the implementation of strong governance practices—such as well-defined credit policies, automated processes, and continuous monitoring—is crucial. According to Rodrigo Balassiano, technology has increasingly supported better integration and enhanced security in credit rights management.
It is also essential that contracts between parties clearly outline responsibilities, set objective targets, and include external audit mechanisms. This creates an environment conducive to sustainable fund performance and strengthens trust in the securitization market.
Understanding the Structuring of FIDCs
In conclusion, the structuring of FIDCs demands technical proficiency, institutional strength, and continuous oversight. The coordinated efforts of the manager, administrator, and custodian enable the fund to operate efficiently, transparently, and in line with regulatory requirements. Rodrigo Balassiano notes that the success of this type of investment vehicle depends fundamentally on the ethical and professional conduct of the parties involved, ensuring consistent returns for investors and reinforcing the financial system as a whole.
Author: Vania Quimmer
