Our partner Francisco da Costa e Silva spoke with Valor Econômico in an article addressing the fact that, with just over a month to go until the end of the year, the government has yet to signal any changes to the composition of the Brazilian Securities and Exchange Commission (CVM), which runs the risk of becoming virtually paralyzed starting next year, with the term of the director and interim president ending at the end of this year.
According to the newspaper, as of that date, if no nominations are made, the commission will be left with only two of five directors, which is likely to delay the progress of judgments and increase the backlog of cases. Behind the scenes, in Rio and Brasília, the selection of names for the CVM faces political impasses, and the approaching parliamentary recess indicates that the decision may be postponed until 2026.
For Costa, the main risk is a reduction in the speed of the board’s actions and an increase in the backlog of cases: “I see an increase in delays with only two directors. Although the technical area has the competence to act on the agenda, the depleted collegiate body compromises the decision-making flow and the pace of proceedings.”