What happens when the market decides to set rules for itself, supervise itself, and impose penalties on those who do not comply? History shows that the result is a healthier business environment, offering security and predictability to the entire ecosystem. Consequently, conditions conducive to sustained growth are created, generating a virtuous circle in which all agents, including the investor, win.

In the specific case of the Brazilian capital market, this practice is called self-regulation and has existed for 25 years, when the first code of good practices from Brazilian Financial and Capital Markets Association (ANBIMA) was launched. Since then, this mechanism gained national and international legitimacy and recognition. There are currently six codes in force, voluntarily followed by around 1,300 institutions that represent almost the entire market.

Learn more about the history of self-regulation

There are several differentials in self-regulation, starting with the voluntary nature of both those who work on drafting the rules and the institutions that are willing to follow them. The members making up the boards, bodies responsible for judging cases of non-compliance, are also volunteers.

The transparency of the inspection processes, created to monitor compliance with the rules, also contributes to the success of the model. Supervision activities are mainly educational – penalties are only applied in cases that non-compliance with the rules persist – and all resources arising from these penalties have a specific destination: actions aimed at educating investors and market professionals.

In addition to being a reference for the market, self-regulation received recognition from the regulator. Through agreements, the Association shares information and data with the CVM in a cooperation that contributes to reducing compliance costs for institutions, releasing efforts for more strategic activities by the regulator and guaranteeing transparency and protection for the investor.

Over these 25 years, ANBIMA’s self-regulation has proven to be dynamic and up to the challenges faced. Just as important as celebrating the progress made so far is looking to the future, aiming to ensure that self-regulation maintains its relevance in the face of transformations that point to structural changes in the capital market. There are many of them, starting with digital assets, which are already a reality. Such transition imposes adjustments to several activities, such as risk assessment, system interoperability, custody and liquidity mechanisms, just to name a few. These are all challenges for regulation and self-regulation.

The increasingly intensive use of new solutions and business models comes in the wake of an even broader movement to break down geographic barriers due to technological advances and decentralized systems. This makes it fundamental that the rules are improved in light of international regulations, under penalty of misalignment in relation to important markets.

Regarding social networks, the growth in the number and reach of finfluencers, digital influencers who talk about investments, exposes the need for some order in this territory. This work has already started with the launch of rules for hiring influencers by financial institutions.

The increased interest in ESG assets brings a new dynamic to agents, whether in terms of metrics, taxonomy, risk assessment and even the culture of managers and investors. Self-regulation has already taken its first steps, but needs to evolve to further leverage this agenda.

We cannot talk about the development of the capital market without one of its main players, the investor. Much progress has been made with suitability practices (investor profile), but having them at the center of the processes is a major challenge for self-regulation. After all, businesses revolve around it. Transparency of processes and clarity of information translate into security and protection for the investor. Ultimately, this is what will ensure sustainability for the investment industry and the capital market, being the main purpose of self-regulation.