By Brazil Stock Guide – Brazil’s publicly traded companies association Abrasca said it supports President Luiz Inácio Lula da Silva’s nominations of Otto Lobo to lead the Comissão de Valores Mobiliários (CVM) and Igor Muniz as a director, calling both “highly technical” choices with extensive experience in capital markets. The comments were reported by Valor Econômico after the government published the nominations in an extra edition of the Official Gazette on Wednesday.
“They are certainly two very technical people, already proven, with very long experience in the market,” Abrasca President Pablo Cesário said, according to Valor.
Lobo had been serving as interim CVM chair, but his previous mandate expired at the end of last year, leaving the regulator’s five-member board partially vacant at a time when it faces growing demands for rulemaking and market oversight. Cesário said the nominations ease Abrasca’s concerns about the board’s “incompleteness” amid regulatory and enforcement challenges tied to supervision of the securities market.
“Now, we have only one vacancy,” he said. Cesário added that the remaining open seat should be filled quickly, arguing that the regulator’s top priority is strengthening its ability to supervise markets through better technology.
“The priority is strengthening the CVM’s technology and market supervision capacity,” Cesário said, describing the need as urgent. Abrasca plans to raise the issue in upcoming discussions on Brazil’s public budget, advocating for greater investment in the watchdog’s operations.
The endorsements underscore the market’s preference for continuity and technical leadership at a regulator that has been asked to monitor an increasingly complex capital market, while also highlighting a renewed push for resources to modernize surveillance and enforcement tools.
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