The latest issue of our Brazil On The Record Newsletter is out! Every Saturday, we bring you the most important laws, decrees, administrative acts, and executive orders which have been approved by the Brazilian government — and published on the Federal Register (the Diário Oficial da União).
For a group subscription, please contact our Communications Officer Laura Quirin at [email protected]
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If it hasn’t been published on the Federal Register, it doesn’t exist—as far as the Brazilian government is concerned.
Brazil’s Federal Register is published on a daily basis, and it is the only space in which the federal government can’t hide.
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BUSINESS AND INVESTMENTS
To the core: Companies which must register for an IPO on the Brazilian stock exchange will be able to complete this process in a confidential manner, by way of a “private analysis,” in which the company’s information is kept confidential until the request for issuance is accepted or the company publishes a market notice and its preliminary prospectus. This has been a long-time request of companies and follows the system already used in the United States. Requests for private analyses must provide justification, but “private treatment must be granted by the technical areas”, rules Brazil’s securities commission.
Other issues to bear in mind:
- It put an end to the restriction on public offer registrations in the 16-day period that precedes the mandatory disclosure of quarterly financial results by listed companies. This was also another long-time request of companies, as it prevented registrations from taking place for 64 days out of the year.
Source: Deliberação CVM nº 809, de 19 de fevereiro de 2019 (Comissão de Valores Mobiliários)
To the core: One of Jair Bolsonaro’s long-time supporters in the race for the presidency, Salim Mattar—owner of major Brazilian car rental company Localiza—was made the special secretary of Privatization and Divestment. Mr. Mattar now has formal powers to appoint the presidents of state-owned companies linked to the Ministry of the Economy. Among such companies are Banco do Brasil and Caixa Econômica Federal, the Brazil’s leading state-controlled banks. Although these banks are not (at least for the time being) on the list of companies to be privatized (and have had their new presidents appointed recently), this proxy extends to 29 other state-owned companies, including several subsidiaries of Banco do Brasil and Caixa. It would appear that the days of these subsidiaries are numbered.
Source: Portaria nº 438, de 25 de fevereiro de 2019 (Ministério da Economia)