The Securities and Exchange Commission of Brazil (CVM) launched a public audience on the revision proposal of CVM Instruction n. 358, which rules the use and disclosure of relevant information related to public companies. The revision of four articles aims at clarifying market rules on negotiation practices and enhancing its supervision.

Public Audience n. 6/2020 from the Superintendence of Market Development (SDM, in the Portuguese acronym) opened the collection of public contributions on the revision proposal of CVM Instruction n. 358, concerning mainly four articles (13, 14-A, 15-A and 16).

The goal of the revision is to replace regulatory provisions that suggest the existence of prohibitions of negotiation practices by insiders with provisions that indicate that negotiation practices by insiders can be subject to presumptions of illicit insider trading (article 13).

The revision also plans to stress automatic prohibitions on negotiation practices by insiders on days immediately before the disclosure of annual and quarterly information, regardless of relevance or pending character (article 14-A).

It also seeks to loosen some rules to improve market efficiency. It plans to reduce the minimum deadline period on investment and disinvestment plans, and its modifications, to come into force as well as amplifying the scope of company investors that can adopt it and be subject to those plans (article 15-A). It also plans to exempt company mandatory disclosure policies for specific cases (article 16).

Public contributions can be submitted to this e-mail address until November 13. More information on the Public Audience can be found here.