04 The “Twin Peaks” Supervisory Model in Brazil
The approach combining prudential and market conduct authorities would reflect the diversity of financial products and services, though communication between agencies remains challenging

08 Expectations Surrounding the New Investment Rule
Regulation seeks to expand the range of available assets and provide greater flexibility for pension funds to invest directly in real estate while promoting the adoption of ESG practices

12 Greater Integration into the International Landscape
ABRAPP strengthens international presence with seminar organized in partnership with FIAP focusing on pension reforms amid aging populations and labor informality

16 PREVIC Reviews Segmentation with New Ordinance
Updated in June and effective as of January 2025, new supervisory framework underscores pension funds’ diversity and risk management practices

19 Brazilian Investors Gradually Embrace ESG
Sustainable Taxonomy and COP 30 drive advancements in Environmental, Social, and Governance Principles among pension funds in the country

23 Targeted Effort to Promote Responsible Investments
PREVI and ABRAPP adjust methodology to share sustainability rating with the entire sector. The tool will be accessible to any pension fund, regardless of size or characteristics

27 Longevity brings opportunities for pension funds
Focusing on products and services consumed by the elderly population creates a virtuous cycle where benefit payments flow back into the pension fund as investment returns

30 Modernizing Defined Contribution Pension Plans
Evolutionary process includes providing ongoing advice to members, fostering proactivity, and implementing new plan designs

35 Statistical Data Ver menos

In recent months, much like the period following the global financial crisis of 2007-2008, the international debate has revisited the adoption of the “Twin Peaks” supervisory model. This framework involves the operation of two distinct authorities— one for prudential oversight and the other for market conduct—responsible for regulating and supervising the entire financial industry, including pension funds.
Some argue that this model is more effective than the sectoral approach, where regulators focus on specific segments, such as insurance, private pensions and securities. The “Twin Peaks” is said to optimize resources, prevent overlapping authority, and better accommodate the growing complexity and integration of financial products and services. However, to date, few countries have implemented it. While it offers notable advantages, it also presents challenges, such as potential communication gaps between supervisors. The potential adoption of this framework in Brazil is the focus of our cover story.
The 45th Brazilian Congress of Private Pensions (Congresso Brasileiro de Previdência Privada - CBPP) was yet another successful event organized by ABRAPP, which is also celebrating the achievements of the international seminar held in collaboration with FIAP (Federación Internacional de Administradoras de Fondos de Pensiones) in Rio de Janeiro this past October. The seminar focused on the international pension landscape, particularly the challenges faced by Latin American countries, such as high labor market informality, increasing longevity, and the lack of financial education and savings culture. Key discussion points of the forum are covered in more detail in the following pages.
Meanwhile, the Brazilian Congress, held in the city of São Paulo in mid-October, maintained its usual focus on the domestic market. Topics such as the revision of investment regulation and the growing attention of pension funds to ESG principles were some of its highlights. In the present edition, we delve deeper into these discussions, specifically the increasing emphasis on the “Social” aspect of sustainable investments. Additionally, we explore the ESGI Index that PREVI pension fund and ABRAPP will soon make available to the sector - an initiative announced for the first time at the event.
We also address a crucial topic worldwide: the longevity economy. In an excelente interview, Dr. Vagner Lacerda, a Ph.D. in Gerontology and Vice President of the Brazilian Association of Senior Citizens (ABRACS), advocates for the pioneering role that organizations can play in this context by viewing longevity not merely as a risk but as an inexhaustible source of opportunities. By capitalizing on these opportunities, pension funds hold the potential to create a virtuous cycle where the benefits return to the system through the consumption of new products and services by retirees.
Happy Holidays!
Flávia Silva
Editor-in-Chief Ver menos