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CVM launches its Regulatory Agenda for 2021 and participates in panels on strengthening enforcement for minority shareholders and the future of the capital market
After two days of debates on the current challenges of the capital market and its possibilities for growth, the event The Resumption of the Economy and the Role of the Capital Market reaches its last day!
The president of the National Bank for Economic and Social Development (BNDES), Gustavo Montezano, gave the opening lecture of the event and the first panel was dedicated to the launch of the Regulatory Agenda of the Brazilian Securities Commission (CVM) 2021. The Superintendent of Market Development of the Municipality, Antonio Berwanger, highlighted which will be the priority issues for the normative performance of the institution in the next year.
“The disclosure of the Regulatory Agenda is one of the CVM’s most important activities, being one of its transparency mechanisms, in order to establish an efficient, modern and attractive capital market. This action also provides predictability, allowing different market professionals to prepare themselves to contribute through our public hearings. The Agenda for 2021 is challenging and complex, with potential themes to further develop the market. ”
Antonio Berwanger, Market Development Superintendent.
Flávia Mouta, Issuers Director of B3 – Brasil, Bolsa, Balcão and ex-Market Development Superintendent of CVM, congratulated the Autarchy initiative. “Congratulations on the visibility of the regulatory agenda, promoting great transparency and helping the market to organize and contribute in the best possible way”he commented. And he added: “What we can highlight with this Agenda for 2021 is a strong balance between actions that seek to meet the interests of the issuer and the interests of the investor. This is crowned in the public hearing proposal of CVM Instruction 481, for example. This movement is very important”, he added.
Also present on the panel: Ricardo Couto (Partner at i476) and Raphael Manhães (Partner at Faoro & Fucci Advogados).
O second panel analyzed that measures and improvements in the legal mechanisms for investor protection are used, in addition to other aspects, to measure the level of institutional evolution of markets around the world.
The objective was to open a dialogue about what actions can be taken to increase the strengthening of enforcement for minority investors.
CVM’s Director, Alexandre Rangel, moderated the debate, also bringing to discussion the recent advances in the scope of the project maintained between CVM and OECD.
“Strengthening enforcement for minority investors is an extremely relevant issue for the capital market. We will have rich debates and we will start with the OECD report, which was supported by the CVM and the Ministry of Economy. This work promoted a result with singular importance to the market and is a precious document that we have in hand. ”
Alexandre Rangel, Director of CVM.
The panel were present: Daniel Blume (Senior Policy Analyst, OECD); Emmanuel Sousa de Abreu (General Coordinator, Financial System at the Economic Policy Secretariat of the Ministry of Economy); and Felipe Hanszmann (Partner at Vieira Rezende Advogados).
Covid-19 pandemic has generated economic and social effects in the world. And now?
O last panel highlighted possibilities for growth. After the strong impacts caused by the coronavirus pandemic in the world, how can the capital market assist in the economic recovery?
This was the great debate, with the participation of the President of the CVM, Marcelo Barbosa. Along with Amec Brasil’s Executive President, Fábio Coelho, CFA Institute’s President, Margaret Franklin, and B3’s President, Gilson Finkelsztain, the speakers discussed the growth prospects of the Brazilian market, considering aspects such as global competition environment, low global interest rates and increased participation of individuals.
“It is a joy to celebrate CVM’s 44th anniversary at this event. I want to take a look at four quick topics in terms of the future of the market. The first is how the regulator and other market agents are reacting to the increase in retail investors (individuals). The number has more than tripled in recent years and it is necessary to offer information for them to make good use of it in their decision making. Issuers must reflect on the way they communicate with investors and we, as a regulator, must adapt our rules to these two audiences ”.
Marcelo Barbosa, President of CVM.
Marcelo Barbosa pointed out necessary actions on the other three themes:
- Use of technology and its impacts on the way the capital market works and shapes itself. For the CVM President, the theme became a vision of the future of the Municipality’s performance in several specific objectives of the institution and which has been launched. “Our processes are already entirely digital, facilitating the monitoring of information and internal procedures, generating benefits for us and the market. We also encourage our regulation to recognize this digital transformation and facilitate the advance of new technologies. And we are attentive to the challenges, how to follow the wave of innovation and its positive points and ensuring that market integrity, investor protection and transparency are balanced “he commented.
- Marcelo Barbosa pointed out the ESG issues as an urgent and present theme, both for the values generated and for the preservation and increase of the market’s competitiveness. According to him, this is a mandatory agenda for the regulator and the market.
“Today it is unthinkable to sell yourself as an attractive market without a policy and practice that lives up to the information pertinent to the ESG agenda by issuers of securities. We have tried to work hard on that front. An example of this is that, this week, we launched an audience public review of CVM Instruction 480, which deals with the companies’ main communication tool with the market, and we were admitted to the UN Global Compact, which is an achievement of enormous satisfaction ” – Marcelo Barbosa, President of CVM.
- Development of financial instruments and products that relate to the ESG agenda. The CVM President highlighted that this has already been the focus of CVM, which has been working in this sphere. The public hearing for review of CVM Instructions 555 and 356 has the objective of allowing the creation of environmental FIDCs. “This will be a good step forward, helping the market to gain more space to raise funds for investments that have positive socio-environmental results, generating gains for society, investors and all of us”concluded Marcelo Barbosa.
“With this perspective of the market, of retail growth, increasingly intensive use of technology and low interest rate, it leaves us confident that it is being paved the way for greater growth, allowing us to take forward the adaptation and improvement of regulation. The market is going through a moment of great transformation in its framework, which I think is very positive. It is something to be celebrated, but it is a celebration that cannot slow down the momentum for us to make even more changes. “
Marcelo Barbosa, President of CVM.
The panel moderator was the first president of the CVM (from 1977 to 1979), Roberto Teixeira da Costa, also founder and board member of CEBRI.