The Securities and Exchange Commission of Brazil (CVM) launched a public consultation on the simplification of procedures related to the registration of securities issuers, ruled by CVM Instruction n. 480/2009. It also improves the disclosure of environmental, social and corporate governance (ESG) indicators.
Public Audience n. 9/2020 from the Securities and Exchange Commission of Brazil (CVM) seeks to collect public contributions to an amendment proposal to CVM Instruction n. 480/2009 (updated version available in Portuguese), which regulates the registration procedures for securities issuers operating on regulated securities markets.
The proposal mainly concerns the contents of the Reference Form, reducing the amount of information required by CVM. It aims at eliminating repetitive requirements of information disclosure – regarding other procedures and the regularity of updates –, reordering sections of the form for a more intuitive structure and harmonizing it with other procedures. Those consolidations seek to reduce regulatory costs.
Other modifications within the Reference Form relate to the improvement of sustainability indicators regarding environmental, social and corporate governance (ESG/ASG in the Portuguese acronym). The proposal requires that issuers position their business within the Sustainable Development Goals (SDG/ODS in the Portuguese acronym) and, if no sustainability report or sustainable Key Performance Indicators are presented, a justification must be presented. The disclose of company diversity indicators is also encouraged.