Brazil CMN restricts FIDC purchases of non-final judicial credits

Brazil's National Monetary Council approved Resolution 5.343, barring FIDCs from acquiring judicial credits until the underlying decision is final and unappealable, effective October 13. This tightens liquidity for litigation-finance assets and may reduce demand for such credits, impacting specialized funds and the secondary market. The move signals regulatory tightening in a niche but growing segment of Brazil's capital markets.