Association suggests improvements to the self-regulation of pension funds

Pension Funds (EFPC’s) should have their own self-regulation code soon, to be prepared by the Brazilian Association of Pension Funds (ABRAPP). On March 11, Amec’s Technical Commission analyzed the draft of the code and prepared suggestions that were sent on March 22.
AMEC praised ABRAPP’s initiative and made some suggestions, among which that the association excludes the adherence process to the code, as it is a broad and principle-based document. With that, it would be similar to the Code of Best Practices of Corporate Governance of the Brazilian Institute of Corporate Governance (IBGC), whose publishing and continuous reviews already indicate there is a concerted view about the good governance practices in the segment.
Amec also highlighted the continuous dialogue with ABRAPP’s self-regulation area to encourage Brazilian pension funds to adopt stewardship practices.
Among other recommendations, Amec also pointed out that the association should be careful when preparing the code to avoid high costs for its implementation by the EFPCs and restated the importance of emphasizing environmental, social and governance (ESG) factors in the document.
Click here to read the President Letter 02/2019 – Contribution to Abrapp’s Code.
ABRAPP’s public hearing on the EFCP’s self-regulation code ended on March 31, 2019.