Brazilian market infrastructure
The Brazilian capital markets industry has been faring very well during the recent financial crisis, not just in terms of performance but also relating to the development of a solid regulatory framework for investing in Brazilian securities. The existing of multiple gatekeepers and strict disclosure requirements for investment funds create a regulatory environment in which Ponzi schemes (a la Madoff) would be virtually impossible. A public website provides daily monitored information for each of the country´s 9,000 funds, including disclosure of data relating to NAVs and redemptions. Monthly disclosure of the components of portfolios is also mandatory and the prospectuses, by-laws and financial statements of each fund are also readily accessible via the public website. To maintain the momentum of prudent corporate governance, a number of initiatives are being rolled out, including the conversion of Brazilian GAAP to the IFRS accounting standard – Brazil is the first of the BRICs to do so—and the disclosure of management team compensation.