Our partner Francisco da Costa e Silva was featured in a report in Folha de S.Paulo which covered the Senate’s approval of two new directors for the CVM; according to the newspaper, this is expected to unblock the regulatory body’s operations, which have been hampered by vacancies on its board.
The article highlights that the agency, however, faces financial difficulties and a shortage of staff, which includes the need to appoint a fifth director.
Costa e Silva told the newspaper that the arrival of the new directors improves the agency’s situation, but says that “major obstacles that hinder effective performance still remain”.
He also cited “a shortage of technical and administrative support staff, training, and adequate physical and material resources” and suggested that the agency’s board, currently composed solely of lawyers, should be expanded and made more diverse, with the inclusion of an auditor, an economist and a technology specialist.
Finally, he explained to the reporter that the decision by Supreme Court Justice Flávio Dino regarding the CVM’s financial viability is only expected to take effect in 2027 – Dino ruled that the National Treasury must stop withholding the inspection fee paid to the agency, thereby increasing its budget.