Our partner Francisco da Costa e Silva was featured in a report on the Seu Dinheiro website analysing the impact of the Federal Supreme Court’s decision, which granted the Brazilian Securities and Exchange Commission (CVM) full access to the proceeds of the Supervision Levy, unlocking an additional R$560 million.
For Francisco, the budgetary boost helps alleviate the CVM’s emergency, but does not resolve the structural problems accumulated by the agency over decades. In Francisco’s view, the problem is not merely quantitative, but also technical.
Since its creation, the CVM’s jurisdiction has expanded radically, yet its structure has remained virtually unchanged. The Board continues to consist of four directors and a chairman, exactly the same institutional structure as nearly 50 years ago. Furthermore, this Board is predominantly made up of lawyers, whilst the regulated market has become far more multidisciplinary.
“We need someone with expertise in technology and someone who is respected in the world of auditing and accounting. If we don’t do this, the quality of decision-making will remain deficient,” says Francisco.