Although the Brazilian market has the most modern regulation in the international market, control policies can still be manipulated to the point of generating distortions in balance sheets, as happened recently with Americanas, points out Pedro Paulo Silveira, managing director from Nova Futura Investimentos.
“Brazil needs to reinforce the supervisory capacity that we have in a regulatory framework that for me is already covering up everything that exists. Having an audit that supervises and audits the balance sheets well is already foreseen in the regulation and should be complied with, but it was not”, he told the CNN .
With a debt estimated at R$ 43 billion, the retailer filed for judicial recovery last week, after disclosing a billionaire gap in its balance sheet. The company’s trio of shareholders — Jorrge Paulo Lemann, Marcel Telles and Carlos Alberto Sicupira — claim not to have been aware of the accounting inconsistencies.
“The market is smart, it adapts to new regulatory frameworks, creating ways to break through the layers of protection. It is essential that we think about how to increase supervision of the capital market”.
Watch the full interview in the video above.
Posted by Ligia Tuon
Source: CNN Brasil
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