Brazil CVM working with bourse in governance plan for state firms

jueves 12 de marzo de 2015 13:45 GYT
 

SAO PAULO, March 12 (Reuters) - Brazil's securities industry watchdog CVM is deeply immersed in a plan spearheaded by bourse operator BM&FBovespa SA to improve corporate governance rules for state-controlled companies, CVM President Leonardo Correa said on Thursday.

He said other market participants are also helping BM&FBovespa craft the plan, which was created in response to the corruption scandal engulfing state-run oil producer Petróleo Brasileiro SA, or Petrobras.

"We are immersed in the BM&FBovespa plan, we are contributing to this," he said at the sidelines of an event in Sao Paulo, without elaborating on the content of the changes.

Enhancing governance is key to rebuilding confidence in Brazilian markets, he added.

The plan is part of a broad movement in Brazil towards implementing a universal code of corporate governance in line with standards followed by OECD countries, Correa said. He expects the government to introduce a draft bill to Congress on the matter this year.

In February, BM&FBovespa Chief Executive Officer Edemir Pinto said the plan would include changes to the exchange's own rules and suggestions to market participants and regulatory agencies. Any new rules would apply to both listed and nonlisted state companies, he said. (Reporting by Guillermo Parra-Bernal; editing by Andrew Hay)