New government’s capital market group excludes Amec and other institutions

In the beginning of June, regulators linked to the government announced a group named Initiative of Capital Markets (IMK – Iniciativa do Mercado de Capitais) that replaces the Working Group on Capital Markets (GTMK – Grupo de Trabalho do Mercado de Capitais). Associations such as Amec (the Association of the Capital Market Investors), IBGC (the Brazilian Institute of Corporate Governance), the B3 and the Brazilian National Bank for Social and Economic Development (BNDES), among others, were not included in the IMK. “The new initiative excludes relevant points previously addressed by the GTMK and it is important to share this fact with our members,” said Amec’s CEO, Mauro Rodrigues da Cunha.

Only the Central Bank, the Brazilian Securities and Exchange Commission (CVM), the Private Insurance Authority (Susep) and representatives from the Ministry of Economy participate in the group. The Brazilian Financial and Capital Market Association (Anbima) is the only civil institution represented in it.

Among the proposals the IMK intends to implement are the creation of a regulatory sandbox that would allow innovative companies to get temporary licenses to operate, the permission for the offer of local debt in foreign currency and the expansion of the credit database. However, matters such as the updating of the Corporate Law, the debureaucratization of the registration process of non-resident investors and the civil and criminal responsibility of directors of publicly-held companies were not included in the proposals.