CVM, AMEC, AND CFA SOCIETY BRAZIL HELD A DEBATE ON STEWARDSHIP PERSPECTIVES IN BRAZIL

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The Brazilian Securities and Exchange Commission (CVM), the Capital Market Investors Association (Amec), and CFA Society Brazil held an event on Wednesday (May 28) to discuss “Stewardship Perspectives in Brazil.” The meeting took place at the agency’s headquarters in Rio de Janeiro. CVM’s CEO João Pedro Nascimento, Amec’s CEO Fábio Coelho, and CFA Society Brazil Board Member Ana Siqueira attended it.

Amec’s CEO reinforced the importance of the topic given the active participation of various players in the Brazilian capital market. “The stewardship agenda has a long-term vision, transcending the myopia we all have of focusing on the results of the day, week, month, and quarter. When we discuss stewardship, it’s to broaden the interaction between issuers and investors. The layer of private protection that arises when we have a well-established relationship relieves the regulator,” analyzed Coelho.

Along the same lines, the CVM’s CEO highlighted the importance of stewardship for the development of the capital market. “We need to prioritize the active exercise of shareholder rights and engagement in matters affecting publicly held companies, as these measures can help in the ongoing effort to prevent absenteeism,” said Nascimento.

“We are experiencing legislative changes and regulatory modernizations that, combined with the use of technology, are revolutionizing the way shareholder meetings are held. The system adopted for shareholder meetings in Brazil is aligned with the best international standards, and this has had positive effects in reducing absenteeism and promoting greater shareholder engagement,” Nascimento commented in his presentation.

The CFA Society representative emphasized the need to encourage engagement to prevent practices that are detrimental to investors in the capital market. “We see reactive engagement more frequently in the Brazilian market. And when we talk about stewardship, we’re talking about preventative engagement,” said Siqueira.

THE EVOLUTION OF STEWARDSHIP

During the panels, the evolution of stewardship around the world was discussed, exploring the experiences of the UK Stewardship Code and the creation of the Brazilian Stewardship Code (CBS). The advantages of implementing stewardship were also highlighted, linking aspects of fiduciary duty, investor protection, and corporate performance.

 

Finally, the experiences of local and international managers in applying stewardship principles were presented, including engagement cases, best practices, limitations of the Brazilian model, and lessons learned.

See the full event schedule

Institutional opening

  • João Pedro Nascimento (CVM’s CEO)
  • Fábio Coelho (Amec’s CEO)
  • Ana Siqueira (CFA Society Brazil Board Member)

Keynote address: The importance of stewardship and the OECD experience

  • Caio de Oliveira (Head of Sustainable Finance and Corporate Governance at OECD)

Panel 1: Stewardship overview in Brazil and worldwide

  • Moderator: João Pedro Nascimento (CVM’s CEO)
  • Participants: Fábio Coelho (Amec’s CEO), Isabella Saboya (Independent Board Member), Otávio Yazbek (lawyer and former Director at CVM), and Marina Copola (Director at CVM)

Panel 2: Stewardship application from the investors’ perspective

  • Moderator: Ana Siqueira (CFA Society Brazil Board Member)
  • Participants: Eduardo Figueiredo (Head of Aberdeen in Brazil), Jaime Gornsztejn (Head of Stewardship at Federated Hermes), Otto Lobo (Director at CVM), and João Accioly (Director at CVM)

Closing statements

  • Alexandre Pinheiro dos Santos (CVM’s General Superintendent)