Aggregated News From Investment Management Regulators

CVM launches public hearing on changes to Instruction 480

Report/Flag

Please complete the required fields.



This post was translated by Regulatory.News for informational purposes only; the content below is not an official translation from the regulator. See the content in its original language here.

Reducing the cost of regulatory compliance and including ESG information are the main objectives

The Securities and Exchange Commission (CVM) puts into public hearing today, 7/12/2020, proposed reform of CVM Instruction 480. The main objective is to reduce the cost of regulatory compliance by issuers of securities, continuing the efforts already made in this direction, inserted in the strategic planning of the Autarchy.

Changes to the reference form

The measures designed to simplify and rationalize the provision of information by issuers mainly concern the content of the reference form.

Check out the changes:

  • Elimination of information already provided by issuers in other documents that must be made public, such as financial statements, bylaws and shareholders’ agreements.
  • Reduction, from three to one fiscal year, the period that should be covered by most of the information provided for in the document.
  • Reordering the fields of the reference form, with the objective of making the more intuitive information sequence.
  • Exemption from disclosure of successive communications on related transactions involving related parties when carried out on a routine basis, in the normal course of business and subject to the same approval process.
  • Harmonization between the reference form and the statement of transaction reporting criteria with related parties (provided for in art. 30-XXXIII).

ESG Issues

Likewise, another important objective of the reform is to improve the provision of information related to environmental, social and governance (ESG) issues, in order to meet the growing demand from investors for the topic.

See the main innovations contained in the reform:

  • Greater emphasis on disclosure of social, environmental and climatic risk factors
  • Requirement for issuers to position themselves on Sustainable Development Goals relevant in the context of your business.
  • Need for issuers that do not disclose sustainability reports or do not adopt key performance indicators for environmental and social issues to explain the reason for not doing so (“practice-or-explain”).
  • Diversity information in management positions and among issuers’ employees.

Other updates

Finally, the proposal contemplates several improvements to CVM Instruction 480, the result of the Municipality’s experience with its supervision and application.

“The progressive reduction in the cost of regulatory compliance aimed at with the reform tends to make the capital market an increasingly attractive option for current and future issuers of securities. At the same time, investors will continue to have access to important information that is better adapted to their current needs ”.

Antonio Berwanger, Market Development Superintendent at CVM.

Sending statements and suggestions

Participate in the Public Hearing by sending your contributions until 3/8/2021 to email [email protected]r.

More information

The new public hearing is part of the CVM Regulatory Agenda 2020.

Access the Public Hearing 09/20.

Source link

Regulator Information

Abbreviation: CVM
Jurisdiction: Brazil

Recent Articles

Ernesto A. Lanza Named Acting Director of SEC Office of Municipal Securities

Washington, D.C., Dec. 3, 2021 — The Securities and Exchange Commission today announced that Ernesto A. Lanza will serve as Acting Director of the Office of Municipal Securities (OMS). Mr.

Tender regarding the ‘Provision of services of two Office Admins/Telephone Operators

The Cyprus Securities and Exchange Commission (‘CySEC’) wishes to announce that it has issued the public Tender No. 19/2021 for the ‘Provision of services...

Nexus IFA (Clone of FCA Authorised Firm)

Fraudsters are using the details of firms we authorise to try to convince people that they work for a genuine, authorised firm. Find out...

Blanket Order 52-503 – Exemption from National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure

Regulated Industries FCNB is responsible for the regulation and enforcement of securities, insurance, pensions, credit unions, trust and loan companies, co-oper

Deutsche Wallet (Clone of FCA Authorised Firm)

Fraudsters are using the details of firms we authorise to try to convince people that they work for a genuine, authorised firm. Find out...

Get the latest from Regulatory.News in your inbox!

×