New CVM survey reveals that capital markets participants consider the integrity of the Brazilian environment below reasonable, with an average of 2.57 on a scale of 1 to 5. The study shows distrust in relation to market agents and regulation, highlighting problems of transparency and enforcement that directly impact investor confidence.
Joaquim Oliveira, our Banking and Capital Markets partner, commented in Valor International that despite regulatory advances, the central problem lies in the difficulty of effective enforcement of laws and penalties. According to him, the weakness stems from the CVM’s limited budget and staff, resulting in slow proceedings and sanctions considered too light, which undermines investor confidence.