The Brazilian Securities Commission (CVM) issued a new rule
allowing listed companies to publish "relevant facts" on
news websites on the internet, rather than physical
newspapers.
All Brazilian listed companies are required to immediately
disclose to the market any relevant information that may affect the
value of their securities. These are known as "relevant
facts".
Prior to the new CVM rule, which will become effective on March,
10, 2014, companies had to publish "relevant facts" in
widely circulated newspapers. The costs of these publications often
created a barrier for emerging or middle-size companies that wanted
to become listed companies.
It is expected, therefore, that the exemption of publication in
newspapers will have an immediate effect in reducing the
maintenance costs of listed companies, thereby increasing the
attractiveness of Brazilian capital markets as a financing
alternative for different companies.
In order to take advantage of the new rule, listed companies will
need to update their official policies of disclosure and
communicate the changes through the old channels used for
publication of "relevant facts".
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
