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Brazilian Securities Commission

Brazil:
The CVM in an International Context

by Euchério Lerner Rodrigues

June, 1996

Index: | International Co-operation | International Organizations |

Globalization / International Co-operation

As markets have been increasingly globalized, the need to exchange information and for international agencies to operate with one another has grown accordingly. This exchange has been encouraged by recommendations made in countless reports and official documents.

The CVM has worked in conjunction with securities commissions abroad with a view to making mutual co-operation more binding. These efforts have given rise to various MOUs or Memorandums of Understanding, between the CVM and other commissions elsewhere and in its participation in international organizations such as the IOSCO (International Organization of Securities Commissions) and the COSRA (Council of Securities Regulators of the Americas).

The MOUs establish communication channels between the parties which have signed the accords and the purpose of such channels is to provide assistance during international investigations conducted into frauds and irregularities on the financial markets. Further, they encourage the exchange of information with a view to improving the regulation of such markets. The CVM has signed MOUs with the following nations:

• The United States of America (SEC and CFTC)
• Mexico
• Argentina
• Paraguay
• Portugal
• Italy
• Spain
• Meanwhile, accords are in the process of being concluded with Bolivia, Ecuador, Hong Kong, Taiwan, Chile and Peru; the negotiations being carried out consist of exchanging relevant information about the respective capital markets so that the levels of comprehensibility of the accords can be defined afterwards.
  

Participation in International Organizations

IOSCO (International Organization of Securities Commissions)

The CVM has a place on the Emerging Markets Committee and on the IOSCO's Executive Committee. It currently presides the Interamerican Committee and the working party looking into the administration of the investments made by this body.

COSRA (Council of Securities Regulators of the Americas)

This brings together regulators from the securities markets throughout the Americas with a view to fostering secure, free and fair markets.

The CVM has been elected to preside over this organisation in the biennial from 1995 to 1996.

MERCOSUR

The CVM is a member of the Capital Market Sub-Group and belongs to the Financial Markets Group, co-ordinated by the Brazilian Central Bank.

ECG (Enlarged Contact Group on Supervision of Investment Funds)

The CVM has been admitted as a member of the ECG, the aim of which is to discuss issues which have a bearing on the development and regulation of collective investment mechanisms. Its members are active regulators in developed markets. Admission occurred after the supervisory activities on the market and regulation of investment funds carried out by the CVM were deemed to be comparable to those practised by other member countries of the group.

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