In a lengthy interview with Valor Econômico, our partner Francisco da Costa e Silva analyzed the current situation of the Brazilian Securities and Exchange Commission (CVM), commenting on the succession of the agency’s presidency, the formation of the collegiate body, and the “Twin Peaks” proposal.

In Costa’s opinion, the new president of the CVM, who is currently being considered by the federal government, should have a technical background. For him, the most important thing is that the person appointed acts with autonomy and “courage” to demand that the agency has the necessary structure to comply with the law, including against the Federal Government, when necessary. “Today, this does not always happen,” he told the newspaper.

In the interview, our partner criticized the change under consideration in the regulatory model, called “Twin Peaks,” and stated that the next president should work to strengthen the CVM and not in favor of this proposal. “Twin Peaks is adopted by four or five countries. That would be turning the supervisory structure upside down,” he said.

Costa also pointed out in the conversation that he sees the CVM in “budgetary distress,” which is reflected in its ability to analyze cases and hinders the swift judgment of cases, and opined that the agency has made more compromises than it should have and that the collegiate body should have more diversity, relying on professionals other than lawyers.

Check out the full interview.