Government appoints Otto Lobo to preside over body that regulates investment funds

Lawyer Otto Lobo, appointed to the presidency of the Securities and Exchange Commission
Geraldo Magela/Agência Senado
The federal government appointed this Wednesday (3) lawyer Otto Lobo to the presidency of the Securities and Exchange Commission (CVM), the body responsible for regulating and supervising the capital market in the country. He will fill the vacancy left by João Pedro Barroso do Nascimento, who resigned from his position, and will serve a term of office until July 18, 2027.
The appointment of Lobo and Igor Muniz to the authority's board of directors were published in an extra edition of the Official Gazette of the Union (DOU).
The CVM is an agency linked to the Ministry of Finance and responsible for monitoring, regulating and disciplining the securities market, which includes shares, shares, debentures, shares in investment funds, among others, ensuring transparency and security for investors.
Before officially taking office, Lobo met this week with the Minister of Finance, Dario Durigan. According to him, the meeting aimed to discuss topics related to the agency's activities.
Senate approves appointment of Otto Lobo to preside over the CVM
Banco Master
The CVM has been the target of questions about the conduct of processes related to the banker Daniel Vorcaro's conglomerate, owner of Banco Master.
At the beginning of February, the CVM itself created a working group to analyze all information related to the Master conglomerate and the fund manager Reag, suspected of involvement in the frauds investigated by the PF, and to propose "structural improvements in regulation, supervision, procedural governance and institutional cooperation".
When asked about the possibility of giving priority to cases involving Banco Master, Lobo stated that the intention is to speed up the processing of all processes in progress at the authority. to judge more cases.
The new president also stated that there will be no distinction between those being investigated and that the procedures will follow legal and constitutional principles.
"Everything will be conducted within legality and with respect for broad defense", he added.
Approval in the Senate
Otto Lobo's name was approved by the Senate in May, by 31 votes to 3. In the same session, the senators also approved the appointment of Igor Muniz to the CVM board.
The choice of Lobo to command the autarchy was attributed behind the scenes to businesspeople and the president of the Senate, Davi Alcolumbre, who denies having acted as the political godfather of the appointment.
The appointment generated disagreements within the government. Members of the economic team expressed resistance to Lobo's name, a position that would have been shared by both the then Finance Minister, Fernando Haddad, and the current head of the ministry, Dario Durigan.
Despite this, according to sources involved in the negotiations, President Luiz Inácio Lula da Silva reaffirmed to Senator Eduardo Braga, rapporteur of the nomination, his preference for Lobo's name.
In the financial market, the nomination also faced resistance. Critics point to decisions considered favorable to Banco Master taken by Lobo during the period in which he served as interim president of the CVM.

Source: G1