1Q 2013 - CFA Society Brazil

NEWSLETTER
QUARTER 1 2013
CONTENTS
The Global CFA Community
The Global CFA Community
1
Welcome to all New Charterholders
3
Charter Ceremony – Insper Auditorium
4
Congratulations to all 2013 scholarship recipients
5
CFASB Leadership and Volunteers
7
Interviews with New Charterholders
8
given in 1963 to 284 candidates and in that year, 268 CFA Charters were awarded
CFA Society of Brazil Events
11
to 18 Canadians and 250 Americans. The charts below illustrate the current
Ethics Workshop
12
geographic distribution of both CFA Charterholders and CFA Candidates around
Annual Conference
13
the globe2. In 2012, the total number of members increased 5% and the CAGR
CFA Institute Research Challenge
14
from 2005 to 2012 has been 5.6%.
Advisory board – Advocacy project
16
Regulatory Issues
17
CFASB Leadership
18
WE ARE THANKFUL TO OUR
GOLD SPONSOR!
The Chartered Financial Analyst community has become truly global, with 113
thousand members located in 137 countries. Within the CFA community, there
are 138 local CFA Societies in 60 countries1. In 2012, 219 thousand candidates
registered worldwide to take one of the three levels of the CFA exam. This
evolution is quite remarkable when one considers that the first CFA exam was
1
Source: CFA Institute website – Facts and Statistics (http://www.cfainstitute.org/about/research/
surveys/Pages/index.aspx).
2
Source: CFA Institute website – Research and Data (http://www.cfainstitute.org/about/research/
Pages/index.aspx).
1
What is most impressive about this extraordinary and consistent growth is that it has occured in spite of the fact that
the CFA exam is, as all Charterholders know very well, very difficult and requires at least two years, but on average
five years, of intense commitment and hundreds of hours of study. In fact, out of every five CFA Candidates, less than
one is awarded the CFA Charter. CFA program pass rates have on average declined since 2005. Hence, the rigor of the
CFA Program has remained very strong.
The CFA Society of Brazil (“CFASB”) is one of the aforementioned 138 local societies. Currently, the CFASB has
511 members, having grown 24.6% in the last 12 months. The CFASB is one of the fastest growing CFA societies in
the world with a CAGR since inception of 26.2%. It all started in 2004 when the CFASB was founded with just 63
members. Within the global CFA community, the CFASB was classified then as an extra small society. Currently
the CFASB has surpassed the 500 membership mark and is classified as a large society 3 . In 2012, more than 2000
candidates took the CFA exam in Brazil and 75 charters were awarded, a record number. Therefore, the CFASB
is growing strongly and, more and more, we are being able to accomplish our paramount objective of adding
value to our members and enhancing the strength of the CFA community in Brazil. Borrowing from one of the
most inspiring speeches in history 4 , I say that the CFASB is a society of the members by the members and for
the members.
Rafael Campos, CFA
President 2012 – 2013
3
The CFA Institute follows the following classification of societies by size:
Extra large societies: above 1501 members; Large societies: between 501 and 1500 members; Medium-sized societies: between 151 and 500
members; Small societies: between 101 and 150 members; Extra small societies: below 100 members.
4
Gettysburg Address by Abraham Lincoln.
2
Welcome to all New Charterholders
2012 was a record year in terms of the number of CFA Charters awarded by the CFASB. 75 Charters were awarded,
a growth of 62% when compared to 2011 and almost twice the annual average of 40 Charters awarded between
2009 and 2011. More than becoming a CFA Charterholder, we hope that these new members will participate in the
CFASB and help strengthen the local CFA community in Brazil.
The CFASB welcomes the following 75 new CFA Charterholders:
Alexandre Bagnoli
Andre Ricardo Moraes Teixeira de Carvalho
Anna Luiza Fleury Krause Pera
Antonio Marcio Luz
Antonio Rodrigues Santos Junqueira
Aristóteles Nogueira Filho
Arthur Sinzato
Augusto Martins Godinho F. Ribeiro
Bianca Bognar
Brunella Rizzi Isper
Bruno Aracaty Papaleo Rocha de Lima
Bruno Erbisti
Bruno Luiz Barreto
Bruno Piacentini
Bruno Russi
Bruno Zanella Quinto
Carlos Marcelo Nardi
Cecilia Perez Cabanas
Celina Campus
Daniel Furlaneto
Daniel Wanderley
Danilo Teves de Aguiar
David Oliveira
Diego Dos Santos
Dinarte Licks
Eduardo da Silva Moreira
Eduardo Da Veiga
Eduardo Figueiredo
Eduardo Fonseca Rodrigues
Emerson Marques da Silva
Enrico Giovannetti Magalhaes Castro
Fabio Goulart
Felipe Oliveira
Fernando Augusto de Aquino Moreira
Filipe De Medeiros Durand
Francisco Ferrazzi Kops
Gregoire Balasko Orelio
Guilherme Abbud
Guilherme Almeida
Guilherme Bannwart Elias
Guilherme Cleffe
Guilherme David
Guilherme Marto
Gustavo Asdourian
Gustavo Vieira
Hans Melchers
Isaias Limonge
Je Seok Yon
João Ferrari Filho
João Guimarães
João Paulo Pires Vaz
Luis Felipe Thomaz Henriques de Oliveira
Luiz Garcia
Manuel Moreda
Marcel Guetta
Marcelo Matheus
Marcelo Silva Clark Nunes
Marcio De Morais Emery
Marcio Perillo
Marcos Antonio Skistymas Filho
Marcos Guerra Lopes
Paulo Giavina-Bianchi
Paulo Pezzi Gitz
Paulo Thomas Refosco
Pedro Kassab
Rafael Peres Nabeshima
Renato Baba
Renato Paixão de la Rosa
Renzo Germán Parodi Follmer
Rogerio Cardozo
Sean Blake-Collins
Susan Patricia Hawkins
Thiago José de Melo Cardoso
Thiago Ramalho
Vitor Selles
3
Charter Ceremony
Insper Auditorium (December 2012)
Board Members Rodrigo Boselli, Allemander Neto and
Mauro Miranda congratulating a new CFA
Charterholder
Board Members Mauro Miranda,
Rodrigo Boselli and the New CFA
Charterholder Antonio Luz
New CFA Charterholders Antonio Luz and
Emerson da Silva
Rafael Campos
President of CFA Society of Brazil
Leah Bennett
President Council Representative
4
Congratulations to all 2013 scholarship recipients
2,646 Access Scholarships were granted for the 2013 Exam Cycle, of which 11 were awarded through the CFA
Society of Brazil. CFASB congratulates all the nominees and wishes best of luck in the upcoming exam!
SCHOLARSHIPS
CFA Program scholarships contribute to CFA Institute’s mission to lead the investment profession globally by
setting the highest standards of ethics, education, and professional excellence, by promoting awareness of
CFA Institute Programs and providing access to individuals that would not otherwise be able to afford the full
cost of the programs.
CFA Program scholarships are administered under 2 separate categories, each with their own set of rules and
deadlines.
I) Access Scholarships
A needs-based scholarship for those unable to afford the full price of the CFA program enrollment and
registration fees.
9 Approximately 2,600 scholarships will be awarded to CFA Program applicants globally in 2014
(14 allocated to CFA Society of Brazil).
9 Access scholarships reduce CFA Program enrollment and examination fees to US$250.
9 Includes the CFA Program eBook (does not include additional costs for print options or any
applicable shipping, taxes or import duties).
9 There is no minimum or maximum income or asset level for Scholarship candidates, but applicants
must certify that they cannot obtain sufficient funds to pay the full price of participation in the
CFA Program.
9 Applicants are not eligible if their employer provides financial assistance for participation in the
CFA Program.
2014 Access Scholarships
Applications Available:
1 March 2013
Deadline to complete application:
15 September 2013
5
II) Awareness Scholarships
Distributed by CFA Institute through Recognized Universities and CFA Program Partners Schools, these
scholarships are targeted for those in academic & financial communities (university faculty, students
affiliated with participating colleges/universities, regulators). Awareness Scholarships are not needsbased.
9 Reduce enrollment and exam registration fees to US$350, including CFA Program eBook
(does not include additional costs for print options or any applicable shipping, taxes or import
duties).
9 University/College students must be currently enrolled in an undergraduate or graduate
degree program at a school that is either a CFA Program Partner or in the University
Recognition Program.
9 College and University finance, economics and business Professors (full-time professors or
administrators/department heads) teaching topics found in the CFA Program Candidate Body
of Knowledge.
9 Full or part-time employees or long-term contractors of corporate or government “Sponsor”
(Sponsors are organizations selected by the CFA Institute strategically positioned to promote
awareness and distribute a specified number of scholarships to affiliated individuals).
For full detailed information on each program, application rules and deadlines please visit:
(http://www.cfainstitute.org/programs/cfaprogram/register/Pages/scholarships.aspx)
Chartered Financial Analyst Certificate
Certificates ready for presentation to new CFA
Charterholders
6
CFASB Leadership and Volunteers
Board Members Sonia Villalobos and Rodrigo Boselli
Charter Ceremony Event (December 2012)
Board Member Luis Affonso, Speaker Larry Speidell,
President Rafael Campos, Sarah-Jane – Purvis Public
Relations Manager CFA Institute and Rafael Matallana –
Manager Latin America Relations | CFA Institute
Member Lunch – São Paulo/Brazil
(June 2012)
Board Member Allemander Neto, Leah Bennett –
President Council Representative – CFA Institute and our
Board Member Sonia Villalobos
Charter Ceremony Cocktail (December 2012)
The CFA Society of Brazil welcomes new volunteers who want to collaborate in the development of our
ongoing activities. As we intend to maintain and improve the standard of our services, and considering that
our goal is to return to the members of CFASB much more than the annual investment made in the payment
of the membership fee, we need to increase our body of volunteers and eventually, members of the Board
of Directors. If you are interested in helping us, send us an email us and get involved in our activities:
[email protected].
7
Interviews with New Charterholders
Our volunteer Susan Patricia Hawkins conducted interviews with Francisco Kops and Carlos Marcelo Nardi, two new
CFA Charterholders. The results of these conversations are below:
FRANCISCO KOPS
car while it was being washed. The worst thing in my opinion
was to refuse invites from friends and family, for doing
things I would otherwise have loved to do.
1 – Background details
eg. what previous
qualifications did you
4 – What do you feel you’ve got out of doing the CFA –
have prior to getting
how has it helped you, how do you think it will help you in
the CFA Charter, what
the future?
are you are currently
I can say that probably everything I know about finance, I
doing?
learned from studying for the CFA exams. In my opinion the
I am responsible for the
greatest assets you gain having the CFA Charter are knowledge
Banks and Financial
and a better network. I think having the Charter really helps
Services equity coverage
people that currently do not work in the capital markets but
at Banco J. Safra, a local
wish to, as in my case. I used to work in accounting audit, so
broker. My role is focused on attending institutional investors
the CFA was essential in order to enable me to shift my career.
and covering local companies. Prior to joining Safra I worked
For those already in the market, I believe the greatest benefit
at another local broker, also as a Financial Institutions sell-side
is to boost your international career as the qualification is
analyst. Additionally, I have experience on credit analysis and
well recognized all over the world.
M&A, focusing on the Brazilian non-performing loan market.
The CFA Institute also gives you access to a variety of tools
and readings about finance, which are free for CFA members.
2 – Why did you chose to study for the CFA Charter?
I was always interested in working with investment analysis,
5 – What do you think are the broader benefits of the CFA
and from my point of view, the CFA came out top in a cost-
globally and in Brazil?
benefit analysis, ahead of an MBA or similar (I actually ran
I believe the broader benefits are the creation of minimal
an IRR analysis comparing costs and future earnings but that
standards of ethical and financial knowledge for financial
is another story!). The program also covers a large array of
analysts, which in consequence, should help promote a higher
interesting subjects, and fitted well with my self-study
level of trust in the capital markets. I believe trust is our main
profile, so I would say it was an obvious choice for me.
problem, and definitely the CFA is helping address this.
3 – What challenges did you face in studying for the CFA
6 – What do you think is the most important part of the
and how did you overcome them?
CFA curriculum and why?
There were so many challenges that I can’t remember all of
It will really depend on what and where you work and what
them. Actually when you work full time, daily study is always
is your background. Probably I will never directly use many
a challenge. I remember studying in the hospital after
of the tools I have learned, but it is still useful to have learned
surgery, in the market while grocery shopping, inside my
about these as I now have a good overall understanding of
8
how the entire market works and the dynamics of different
Concordia University. I also took the CFA exams and received
asset classes. In my case the most important areas are, in no
the CFA Charter last year.
particular order, equities, fixed income, ethics and financial
Whilst doing my MBA I worked in private and public global
statement analysis.
investments in the Infrastructure and Energy sectors at a large
Canadian pension fund. Having returned to Brazil this year, I
7 – How do you see the Brazilian economy developing and
am currently working as an advisor for an energy-focused
your role in this as a CFA Charterholder?
Canadian private equity fund which is looking to acquire
In my opinion, the Brazilian economy is at a very important
assets in Brazil. My role involves identifying energy facilities
stage, which many people are calling the “mid income trap”. A
and supporting the fund in completing the due diligence
lot of progress has been made, and the inflation control,
process (valuation, technical and legal due diligence). I am
poverty reduction and the growth of the middle class is
enjoying interacting with many energy companies in Brazil
admirable. However I feel that we are in another stage of
and see this as the first stepping stone in familiarizing myself
development and many of the policies carried out in the past
with investment in private infrastructure assets in Brazil.
will not work anymore. We definitely need to increase our level
of investment and our education system in order to continue
2 – Why did you chose to study for the CFA Charter?
to achieve healthy economic growth rates. With structurally
I was looking for a change in my career and was gearing
lower interest rates, the capital markets will have to be more
towards the finance industry. I had planned on taking the
sophisticated, and I believe that Brazilian CFA Charterholders
MBA and CFA as a way of building technical knowledge in
can provide an important contribution to this evolution.
finance. Coming from a background in Engineering, I already
had a solid foundation in mathematics and structured
thinking. I have found that the CFA qualification is extremely
CARLOS MARCELO NARDI
well respected in the finance industry and the solid technical
base that it gives you is invaluable for professional growth.
1 – Background details
eg. what previous
3 – What challenges did you face in studying for the CFA
qualifications did you
and how did you overcome them?
have prior to getting
The workload is definitely a challenge, especially if you are
the CFA Charter, what
working and studying at the same time. I tried to overcome
are you are currently
this by scheduling a time every day to concentrate on my
doing?
studies, so that I didn’t get behind in the readings. As long as
I graduated as an
you plan ahead and execute your set tasks it is possible to
Electrical Engineer
balance work, studies and personal life. You just have to focus.
from the Universidade
Federal do Rio Grande
4 – What do you feel you’ve got out of doing the CFA –
do Sul (UFRGS) in 1996
how has it helped you, how do you think it will help you in
and then pursued a graduate course in Energy Generation at
the future?
the Universtiy of Itajubá in Minas Gerais in 2002, whilst
I think I have developed enormously technically as the CFA
working for Copesul. I decided to pursue a change in career
encompasses the broadest and most complete curriculum
and in 2007 I completed a Masters’ Degree in Finance through
in the finance world. It offers you a unique perspective of
UFRGS. Following this, I moved to Canada and in 2010 I
how the different areas of finance interact. The curriculum
completed an MBA in Investment Management through
is written by top professionals and academics in the industry
9
and offers a complete and up to date description of real
profession and in the duty to clients. CFA Charterholders have
world finance. The CFA has helped me in past job
devoted at least three years of their lives working very hard
opportunities and I believe will help me further in my career
towards the designation and are guided by a very strict code of
as it becomes more widely known and recognized in Brazil.
conduct. This gives more confidence to employers and clients.
5 – What do you think are the broader benefits of the CFA
7 – How do you see the Brazilian economy developing and
globally and in Brazil?
your role in this as a CFA Charterholder?
The CFA provides a strong technical foundation for finance
The Brazilian economy will continue to experience rapid
professionals. It’s an endorsement for professionals in
development in the next few years. The development will
emerging markets which gives investors more confidence
increase the need for higher technical and ethical standards.
(though investors still know that the regulatory infrastructure
The role of CFA Charterholders will become increasingly
needs to be developed).
important as this development happens. The current Board
members of the CFA Society of Brazil understand the
6 – What do you think is the most important part of the CFA
importance of the CFA Charterholders in this process and are
curriculum and why?
forming Committees in different areas in order to participate
The CFA Institute curriculum emphasizes the importance of
in this process. I encourage my fellow Brazilian CFA
ethics to our profession and I think that is the most important
Charterholders to also volunteer and take an active role in
part. We have witnessed many scandals in the finance world in
this development. It is definitely an exciting time to be in Brazil!
recent times increasing the need to set high standards in the
Susan Patricia Hawkins
Volunteer CFA Society of Brazil
Susan, thank you for your support!!!
10
CFA Society of Brazil Events
The CFA Society of Brazil has been able to increase the number of events offered to its members almost every year. The
purpose of these events is to offer continuous education, to promote the interaction between members, and to discuss and
propose a broader reflection on important matters regarding the finance market in Brazil and in the World.
CFA Society of Brazil Annual Conference
Vila Uber – SP (October 2012)
Member Lunch
CFA Society of Brazil (March 2012)
In 2012 several events were organized by the CFA Society of Brazil. Among them, we can highlight the Member Luncheons with
international speakers like Dan diBartolomeo, who presented the “Chasing Bernie Madoff: An Analytical History” case, and also
Larry Speidell who spoke about “Frontier Stock Markets: A look back from 2050”. National speakers also treated important
subjects, like Mauro Cunha – AMEC president, who spoke about “Governance and activism today”, Leonardo Ribeiro conducted
a discussion on “Private Equity: Is it worth investing in participations in Brazil? Market overview, cases and perspectives”, and
Gabriel Cunha from Goldman Sach who presented “Equity Derivatives and its
applications”. Our members in Rio could also join a member lunch organized in
October with the speaker Alexandre Póvoa on “The challenges of valuation in the
century XXI”.
Member Lunch
CFA Society of Brazil (March 2012)
CFA Society of Brazil Annual Conference
Hotel Unique – SP (August 2011)
11
Ethics Workshop (August 2012)
In addition to regular events such as member luncheons, special one-off events such as the Ethics Workshop, organized in
partnership with the CFA Institute and INSPER, are offered. The international speaker Michael G. McMillan, CFA Director,
Ethics and Professional Standards CFA Institute reinforced the importance of Ethics in the finance market.
Speaker Michael G. McMillan, CFA Director, Ethics
and Professional Standards CFA Institute
Ethics Workshop at Insper
Ethics Workshop at Insper
Ethics Workshop at Insper
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Annual Conference (October 2012)
The CFA Society of Brazil Annual Conference was held again in 2012 with the keynote speakers Gustavo Franco and John Mauldin.
At this opportunity the CFASB awarded its first Honorary Membership to Mr. Luis Stuhlberger. The event started with a cocktail
and was followed by a dinner with over 170 participants, mainly CFA Charterholders, and was broadly covered by the media.
Member CFA Society of Brazil Marcos De Callis, Speakers
Gustavo Franco and John Mauldin and Rafael Campos –
President of CFA Society of Brazil
CFA Society of Brazil Annual
Conference
Luis Stuhlberger
Tribute to honorary member of the
CFA Society of Brazil
The title of honorary member
Luis Stuhlberger
13
CFA Institute Research Challenge
This annual educational initiative promotes best practices in equity research through hands-on mentoring and intensive
training in company analysis and presentation skills.
Additionally, all participants are introduced to and held to the standard of the CFA Institute Code of Ethics and Standards of
Professional Conduct.
HOW THE RESEARCH CHALLENGE WORKS
Local hosts – typically our member societies – and CFA Institute host and launch local competitions involving teams of three to
five university students who work directly with a local, publicly-traded company in researching and preparing a company analysis.
Each team works with an investment professional who mentors the team during the research process and who reviews and
critiques the team’s company analysis report. The report is reviewed and scored by a group of judges and the teams’ final
presentations are locally evaluated by high-profile panels of experts from top financial institutions. The team with the highest
combined score wins the local competition and advances to a regional competition in the Americas, Asia Pacific, or Europe/Middle
East/Africa (EMEA) region. The winners of the regional competitions advance to the global final.
Learn more about how the Research Challenge works and how to get involved.
BENEFITS OF PARTICIPATION
Real-World Training for Students: University students participating in the Research Challenge interact with investment professionals
and top firms while getting real-world experience in equity analysis, sell-side research report writing, and presentation skills.
Investment Professionals Make an Impact on the Profession: Investment professionals have the opportunity to teach best
practices and promote ethical decision making to the next generation of financial professionals.
Public Companies Promote Education and Analyst Independence: Companies give back to the community and tap into local
talent while gaining unbiased research and opinions from student teams.
Universities Gain Global Exposure: Universities gain international media attention, which can help set the university apart
from other business schools.
2012 RESEARCH CHALLENGE NETWORK
3,000 + Students
1,200 + Industry Volunteers
650 + Universities
111 CFA Society Hosts
87 CFA Local Level Challenges
55 Countries
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CFA INSTITUTE RESEARCH CHALLENGE – LOCAL COMPETITION CFA SOCIETY OF BRAZIL
Ten universities participated in the 2012 CFA Institute Research Challenge of the CFA Society of Brazil:
Insper – Instituto de Ensino e Pesquisa, Fundação Getúlio Vargas (FGV), Universidade de São Paulo FEA/USP, Universidade de
São Paulo – Ribeirão Preto FEA/USP – RP, Universidade Presbiteriana Mackenzie, Fundação Armando Alvares Penteado – FAAP,
Universidade de São Paulo – Luiz de Queiroz – ESALQ/USP, Instituto Brasileiro de Mercado de Capitais – Rio de Janeiro IBMEC;
Universidade Federal do Rio de Janeiro UFRJ and Universidade Federal de Santa Catarina UFSC.
On October 2012 each university team submitted their research reports on the target company, M Dias Branco, to a panel of experts
from the CFASB.
On November 2012 the INSPER team won the Brazil competition.
The next step is the Regional contest, which will be held in Toronto on 20 and 21 March 2013.
The winner of the Regional level will participate at the Global competition in London on 12 April 2013.
INSPER team: Danilo Kamiji, Danton Takashi Fukuda Koga, Bernardo Calvente,
Guilherme Solferini Moraes Barros and Renan Criscio (Faculty Advisor Michael Viriato Araujo)
Event in Radisson Hotel (November 2012)
WE WISH THE BEST OF LUCK TO THE INSPER TEAM IN TORONTO
PAST WINNERS:
2012 – Insper
2011 – Insper
2010 – FGV
2009 – FGV
2008 – FGV
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Advisory board – Advocacy project
In August 2011, CFA Institute and CFA Society of Brazil representatives met with the President of the Brazilian Securities
and Exchange Commission (CVM), Maria Helena Santana, who urged the CFA Society of Brazil (CFASB) to pursue a
more active role in advocacy in Brazil, by participating in CVM’s Public Hearings on new proposed regulations.
In order to implement this idea and give due weight and legitimacy to the CFASB’s positions and foster the principles and
positions that we as Charterholders defend, the Board of CFASB established an advocacy project.
First, a Committee was created, composed of some of CFASB’s most senior members, to coordinate this process.
This Committee (the Advisory Board) is responsible for analyzing new regulations proposed by the CVM, consulting
members through pooled surveys and calls for contributions, consolidating feedback and structuring CFASB’s
proposals to regulators. The Board must approve all proposals before submitting it to regulators, but the Committee
holds an important advisory role. This Committee has been modeled on the CFA Institute Advisory Council, which
has a similar profile and mission.
The second step was to provide this senior group and the Board with the adequate means for performing an
advocacy role in Brazil by recruiting a specialized assistant. The need for specialized staff stems from the fact that,
in Brazil, regulators tend to give special attention to documents prepared by legal counsel and written in accordance
with regulatory protocol. The specialized assistant would be hired on a part time basis, maximizing the benefits
we could draw from his/her expertise. Sergio Mello, a professional with more than 20 years experience in the
Brazilian capital markets, including 8 years as Representation Manager at ANBIMA, was hired for this role. Sergio
can be reached at [email protected].
To give an idea of the potential of an effective advocacy activity, a new regulation applicable to Asset Management Firms
is under Public Hearing since December 2011. According to the CVM proposal, employees responsible for managing
investment portfolios will have to pass an examination. We will propose that the CFA Exam becomes accepted as one of
the exams approved by the regulator. As there are around 500 Asset Management firms in Brazil, managing more than 1
trillion USD, we can surely expect a very positive impact to the CFA designation and number of potential members and
candidates should we be able to have this proposal approved.
Public Hearings on rating agencies, suitability of investment products, distribution of investment funds and all IFRS
implementation are themes expected to be discussed with regulators over the next several years. If the regulatory activity
becomes less urgent (which is not foreseen) the group and staff can focus on ethics and enforcement matters, including
writing position papers on important ethics discussions, promoting training and education in regulatory and ethics matters
and conducting opinion surveys of members on important issues. Committees composed by CFA members will be organized
to drive such discussions. Up to January, Accounting Standards and Corporate Governance Committees were created and
are working actively.
Another important activity in the advocacy front is the relationship with similar entities that play active role in fostering
the adoption of best practices and ethical behavior in our market. The goal here is to discuss possible common agenda
and change ideas on the regulatory movements of our industry.
16
Regulatory Issues
CVM has been very active in the last months of 2012 in terms of issuing new regulations and public hearings. We list
below the most relevant activities and highlight the ones that CFASB analyzed and provide CVM with feedback:
Regulations issued:
• CVM Instruction nº 525 (10/09/2012) – it changes provisions of CVM Instructions nº 400 and 480;
• CVM Instruction nº 526 (21/09/2012) – it changes the article 37 of the CVM Instruction nº 505;
• CVM Instruction nº 527 (04/10/2012) – disclosure of EBIT and EBITDA (LAJIR / LAJIDA);
• CVM Instruction nº 528 (24/10/2012) – regulation of Real Estate funds;
• CVM Instruction nº 529 (01/11/2012) – it regulates “Ouvidoria” in capital markets;
• CVM Instruction nº 530 (22/11/2012) – it regulates aspects of price formation in public auctions;
• Deliberation nº 688, 689, 690, 691, 692 – they approved new accounting procedures.
Public Hearings
• SNC nº 04, 05, 06, 07, 08, 09, 10, 11, 12, 13, 14 – proposed changes in accounting standards. Is part of the
CVM commitment to review all Brazilian accounting standards and align them to IASB standards;
• SDM nº 07/2012 – it adds exceptions to the prohibition of trading during the public offering process. There
no comments or suggestions from the CFASB members;
• SDM nº 08/2012 – it changes CVM instructions nº 359 to allow the ETFs of Fixed Income. We received comments
and suggestions from CFA members and they were analyzed by the Advisory Board and addressed to the CVM.
GIPS
GIPS stands for Global Investment Performance Standards. The GIPS standards are voluntary and are based on the
fundamental principles of full disclosure and fair representation of investment performance results. Global
standardization of investment performance reporting gives investors around the world the additional transparency
they need to compare and evaluate investment managers. To build a level field of comparison by standardizing the
way investment managers calculate and present performance to clients.
There are more than 30 countries already sponsoring the adoption of the GIPS standards in their markets and CFA
Society Brazil chose the implementation of GIPS in Brazil as one of its most urgent missions. We understand that this
will be very relevant to Brazilian asset managers in the near future as this adherence to GIPS standards is a requirement
for around 75% north-American institutional investors to select the companies that will attend them. The same
requirement may rapidly become practice among Brazilian institutional investors.
In this sense, CFA Society Brazil’s Advisory Board has been meeting with ANBIMA and discussing the implementation
of a joint venture to create the GIPS Country Sponsor entity in Brazil. Discussions have involved market players such
as asset managers and fund administrators, as well as consulting companies such as PwC and E&Y and the initiative has
been fully supported by them. Up to the end of May, the Boards of CFA Society Brazil and ANBIMA are expected to
approve the joint venture and submit to the GIPS Board the request for Country Sponsor approval.
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CFASB Leadership
Advisory Board
Luís Fernando Affonso, CFA
Charles Ferraz, CFA
Marcio Verri, CFA
Claudio Andrade, CFA
Marcos De Callis, CFA
Luciana Pazos, CFA
Pedro Martins Junior, CFA
President
Rafael Campos, CFA
Board of Directors
ADVOCACY AND INSTITUTIONAL RELATIONS
Luis Fernando Affonso, CFA
TREASURER
Rodrigo Kretly Boselli, CFA
Accounting Standards Committee
Jorge Augusto Hirs Saab, CFA
Thiago Augusto Macia Munhoz, CFA
Marcelo Martins, CFA
Rafael Alves Rodrigues, CFA
Guilherme Cleffe, CFA
EDUCATION
Mauro Miranda, CFA
EMPLOYER RELATIONS, SCHOLARSHIPS AND PARTNERSHIP
Allemander J. Pereira Neto, CFA
Corporate Governance Committee
Julio Cardozo, CFA
Alexandre Vasarhelyi, CFA
Guilherme Cleffe, CFA
Antonio Luz, CFA
Arthur Nabuco, CFA
Mauricio Marçal, CFA
Marcelo Campero, CFA
Maurício Carvalho, CFA
Marcos Antonio Skistymas Filho, CFA
PUBLIC AWARENESS AND SPONSORSHIPS
Rafa Tajouri, CFA
PROGRAM AND EVENTS
Rafael Campos, CFA
UNIVERSITY RELATIONS AND CFA INSTITUTE RESEARCH CHALLENGE
Sonia Villalobos, CFA
Advocacy Advisor
Sergio Mello
COORDINATOR AT CFA SOCIETY OF BRAZIL
Débora Fernandes
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Volunteer Opportunities
Contact Débora Fernandes at
[email protected]
Employment Opportunities
To view current opportunities
please visit our website:
http://www.cfasociety.org/brazil/
members/Pages/default.aspx
Coming Events
Please visit our website
www.cfasociety.org/brazil
“CFA SOCIETY OF BRAZIL IS AN ORGANIZATION RUN BY VOLUNTEERS
THANK YOU FOR YOUR SUPPORT”
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