CVM breaks the monopoly of print newspapers on legal advertising.
Starting March 10th, companies will be able to publish their relevant facts and market announcements on internet portals; the resolution was approved by the Securities and Exchange Commission, chaired by Leonardo Pereira, and faced strong opposition from the National Association of Newspapers, which advocated for privileging print media; the need to reduce costs for companies weighed heavily in the decision; in Congress, an initiative in this direction was led by Congressman Anthony Garotinho.
247 - Brazil's Securities and Exchange Commission (CVM) released an instruction on Wednesday authorizing publicly traded companies to publish announcements on online portals starting in March, instead of just in major newspapers, as is currently the case.
According to the CVM (Brazilian Securities and Exchange Commission), the intention is to facilitate and expedite the dissemination of relevant acts and facts and contribute to a decrease in the maintenance costs of publicly traded companies, "thus increasing the attractiveness of the capital market as a financing alternative."
In a statement, the local authority clarified that the main change from the draft that had been put out for public consultation was the reduction of the requirement from three to just one news portal if the company chooses to publish its content electronically.
The document in question must also be made available on the CVM (Brazilian Securities and Exchange Commission) and company websites, and "when applicable, in the market where the securities are admitted for trading."
The measure will take effect from March 10th – in Congress, the initiative in this regard was led by Congressman Anthony Garotinho (PR-RJ), who presented a bill against the mandatory legal advertising in print media.
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