The Brazil Securities Commission (CVM) has launched a preliminary call for evidence on the Corporate Governance Report required from listed companies under Annex D of CVM Resolution 80. The initiative will inform its assessment of the report’s effectiveness and could support future changes to the disclosure regime, including possible integration of its content into the Reference Form and revisions to the governance of the Brazilian Corporate Governance Code. The review follows a 2024 regulatory outcome assessment that found the report had a positive but limited effect. The CVM is seeking evidence on whether useful information is concentrated in a small number of practices, explanations for noncompliance have become standardized, and benefits accrue mainly to institutional investors and specialist users. It will also examine the relative burden on smaller companies, the effect of infrequent code revisions, and whether concentrated ownership limits market discipline. These propositions are working hypotheses rather than conclusions, and the exercise does not necessarily lead to a regulatory impact analysis or rule change.
Brazil Securities Commission launches call for evidence on corporate governance disclosure regime
The Brazil Securities Commission has launched a call for evidence on the effectiveness of listed companies’ Corporate Governance Report. The review will assess its informational value, costs and market use and could support changes to the disclosure regime or the Brazilian Corporate Governance Code.