In response to Amec, CVM addresses the distortion of business purposes

The Brazilian Securities and Exchange Commission – CVM – answered to the President Letter 12/2016 sent by the Association of Capital Market Investors – Amec, in which it voices its members’ concern about companies that operate or make investments unaligned with their business purposes. In the answer, the regulator explains that concrete cases can be analyzed in the sphere of the Risk-Based Supervision (SBR) system of the Office of the Superintendent of Companies – SEP, and highlights the importance of stakeholders turning to CVM whenever they deem it necessary.
Recent cases that take advantage of gaps, such as “the participation in other corporations,” reinforce the concern of Amec’s members about the distortions of listed companies’ business purposes.
Click here to access the President Letter 12/2016 – Distortion of listed companies’ business purposes.
Click here to access CVM’s answer.