|IBGC prepares guideline letter on assessment reports|
Transparency in assessment reports will be one of the main themes discussed in the third guideline letter from the Brazilian Institute of Corporate Governance (IBGC). The document is expected to be issued in October, during the entity's annual congress. "We'll recommend the best practices to be considered by both the companies and appraisers, in mandatory or voluntary reports", says Renato Chaves, coordinator of the guideline letter managing committee.
The letter started to be drafted in June, and its rapporteurs — lawyer Norma Parente and executive Luiz Spinola — are still working on surveying the situations to be detailed. A constant complaint regarding the reports is the lack of access and the lack of discussion regarding its assumptions, which in many cases cause the appraisals to be contested and classified as not entirely impartial. "The origin of the data on which the assumptions were based needs to be well presented," emphasizes Chaves, who also intends to encourage the use of clear and objective language in the document.
Assessment reports have been discussed during the public consultation on the reform of Instruction 361, which concerns public share offerings (OPAs in Portuguese), carried out by the Brazilian Securities and Exchange Commission (CVM) through the month of July. On the occasion, the autarchy proposed to increase the liability of institutions that issue reports, in an attempt to raise the level of trust in the document. The issue is controversial, and the rule's final version has not been published yet. The IBGC will consider the CVM's conclusions in its guideline letter.