05. Performance in the Year GRI 103-2, 103-3 | 203, 203-1, 203-2
In this chapter we present a summary of how our year was. The main initiatives and projects developed throughout 2021 are reported below. Some of them are part of the Action Plan, which guides ANBIMA’s activities each year.
We also present the work developed for our in-house team, with a focus on people, management, and sustainability. Lastly, the financial report consolidates the financial statements for the fiscal year.
Initiatives and projects
In the second half of each year, we prepare the action plan that guides our work in the following year. It is compiled based on several rounds of conversations with ANBIMA members, who bring us their market perceptions and demands that can be included on the Association’s agenda. Parallel to this, the major trends in the Brazilian and international markets are identified.
Throughout the process, institutions that do not occupy seats in the Association’s forums, committees or other groups are heard as well, in addition to all the leaders of these same bodies that comprise our governance. Thus, we ensure the representation of the various market segments and institutions of different sizes and operating profiles.
The result is a set of initiatives that reflect what the market wants as a focal point for ANBIMA in that year. This work is ultimately validated by the Executive Board. Since the market is dynamic, initiatives are reassessed on an ongoing basis, and new actions may also be included in the plan.
The result is a set of initiatives that reflect what the market wants as a focal point for ANBIMA in that year. This work is ultimately validated by the Executive Board. Since the market is dynamic, initiatives are reassessed on an ongoing basis, and new actions may also be included in the plan.
The Positive Agenda sought to meet demands related to investors, the capital market, the secondary market, and asset management. The Transversal Agenda included initiatives related to sustainability, innovation, diversity, and taxes.
Below is a summary of what has been done for each of them, plus other relevant initiatives that were not part of the action plan.
Positive Agenda
Transversal Agenda
Investor
In 2021, the investor-oriented agenda prioritized actions focused on providing more transparency and information to people, whether for making decisions when it comes to investing or for monitoring their portfolios.
One of the milestones was the entry into force of the new rules for disclosing the method of compensation of institutions for selling investment products. This was the first step, and discussions continue moving forward to provide increasingly more information to clients. On this topic, we also submitted suggestions to the CVM’s public hearing.
Still, along the lines of making clients’ lives easier with greater transparency, rules were developed for pricing the reference values of government bonds, CRIs (Real Estate Receivables Certificates), CRAs (Agribusiness Receivables Certificates), and Corporate bonds held by the investor. Starting in January 2023, institutions must publish clients’ positions with the reference price for these assets. In this way, they can better monitor the price fluctuations of their portfolios.
The activities of independent distribution agents also warranted attention in 2021, when we submitted suggestions within the public hearing held by the CVM (Brazil’s Securities and Exchange Commission) on the matter. As part of our recommendation, we also propose to review the role of financial advisors, in light of the fact that advisory activity is becoming more and more relevant in the market.
The inception of open banking in Brazil was another topic on our 2021 agenda. We sent the Central Bank of Brazil an initial scope proposal for open investment, which is the fourth phase of open banking and deals with sharing information about investments. We suggested that the project include information on investment funds, CDBs/RDBs (Bank Deposit Certificates/Receipts), LCIs (Real Estate Credit Bills), LCAs (Agribusiness Credit Bills), CRIs (Real Estate Receivables Certificates), CRAs (Agribusiness Receivables Certificates), corporate bonds, shares, ETFs (Exchange Traded Funds), and treasury bills. With investors in mind, at first the focus was on relevant products and services for retail customers.
Capital market
Our performance in capital markets took place both in the institutional and regulatory spheres. Within the scope of the CVM, we contributed to the debate on revising the rules for public offerings. Our proposals were submitted in July, and the market is awaiting the publication of the new rules in 2022.
We also work with the government to influence the approval of proposals sent to the IMK (Capital Market Initiative), a group led by the Ministry of Economy with the aim of further developing the sector. We submitted several recommendations that were included as priorities on the forum’s agenda.
In the field of securitization, the work focused on disclosing information. Along these lines, a proposal was prepared for the concepts of standardization of assets consisting of CRI (Real Estate Receivables Certificates) and CRA (Agribusiness Receivables Certificates). These two products also became part of the database for “ANBIMA Data,” our market information platform. On this platform, it is now possible to find records of the operations of CRIs (Real Estate Receivables Certificates) and CRAs (Agribusiness Receivables Certificates), such as the conditions of each series, the issuance and general documents of the offer.
Throughout 2021, other relevant initiatives with the market were discussed at events and meetings, and among them, the reform of the rules for public offerings and the consequent updating of its respective self-regulation code; as well as the work to implement Special Purpose Acquisition Companies (SPACS) in Brazil. The three main events were:
ANBIMA 2021 Agenda: Capital markets
In an exclusive live stream for members, several items on the Association’s agenda for the year were detailed. The conversation was led by our vice president, José Eduardo Laloni, who also serves as chairman of the Capital Market Structuring Forum, and included the participation of Sergio Goldstein, the group’s vice president. The event was held on April 20th and had 87 views on Workplace.
The Phenomenon of SPACs.
An event that was live-streamed first-hand to members, to discuss Special Purpose Acquisition Companies (SPACs), which have grown in the United States and caught the world’s attention. As discussions on how to bring SPACs to Brazil take place through ANBIMA, we put together an experienced team: Fersen Lambranho, Chairman of the Board of Directors of GP Investments; and Paulo Gouvêa, CEO of Itiquira Acquisition Corp; who have already taken part in these processes overseas, in addition to Gustavo Gonzalez, lawyer and former director of the CVM; And Sergio Goldstein, vice-chairman of our Capital Market Structuring Forum. The webcast took place on May 28th and had 106 views on Workplace and over 500 views on Youtube.
Public Offerings Reform
Presented in a public hearing by the CVM in March 2021, the reform of the rules on public offerings was discussed in an hour-long live webcast mediated by João Camarota, WG coordinator at ANBIMA. The chat included two CVM representatives: Antonio Berwanger, Market Development Superintendent, and Luis Miguel Sono, Securities Registration Superintendent; in addition to Fernando Zorzo, the partner at the law firm Pinheiro Neto Advogados. Held on June 22, the event had 121 views on Workplace and over 350 views on Youtube.
Secondary market
Our initiatives to develop the secondary market focused on three aspects: liquidity management, pricing, and private credit. Defining rules and procedures for managing fund liquidity gained even more momentum early on in the pandemic when high volatility brought this issue into question. The new rules came into force in December, giving more clarity to the roles of administrators and management firms, in addition to establishing metrics and controls more closely aligned to the liquidity of assets and the behavior of liabilities.
We also launched a digital tool, with exclusive access through the Learning and Publications Module (MAP), to assist institutions in creating their liquidity policies. Use of this tool is optional and free of charge. Along with the new rules and the tool, we also launched a “redemption probability matrix”. Applying the matrix is voluntary, and serves as a benchmark for management firms when estimating withdrawals from their funds.
In the third pillar of activity in favor of the secondary market – private credit – we participated in the public hearing on credit derivatives and credit Structured Operations Certificates (COE). Since the regulator’s text was in line with the market’s expectations, most of our suggestions were aimed at specific changes in the wording of the standards.
In the third pillar of activity in favor of the secondary market – private credit – we participated in the public hearing on credit derivatives and credit Structured Operations Certificates (COE). Since the regulator’s text was in line with the market’s expectations, most of our suggestions were aimed at specific changes in the wording of the standards.
Livestreams on liquidity policy
To help institutions implement the new rules for investment fund liquidity policies, we discussed the issue in the different stages of consolidation of the standards. In March, we live-streamed a webcast that addressed the improvement of asset and liability metrics, as well as the new responsibilities of fund administrators and management firms. In September, more than 450 people participated in our first open meeting with the market on the new rules. Participants from 185 institutions cleared up their doubts with Ricardo Mizukawa, Fabricio Oliveira, and other members of the Risk Management Thematic Committee.
Resource management
Three fronts guided the initiatives aimed at managing third-party assets: regulation, self-regulation, and transparency. On the first front, we gathered more than 160 representatives of the investment fund industry, from 73 institutions, in a working group to debate and consolidate suggestions sent to the CVM at the public hearing that presented that agency’s proposal for the new regulatory framework for the investment fund industry. Our main suggestions sought to meet investors’ demands for greater diversification of investments, with the expansion of limits for investment abroad and for FIDCs (Credit Receivables Investment Funds), for example.
This work continues in 2022, as the new resolution on investment funds has not yet been published. Consequently, some self-regulation initiatives planned for the year – such as the review of the Qualified Services Code – were also put off until 2022.
In the meantime, we have revised the Third-Party Asset Management Code in order to incorporate two major changes: the creation of criteria for identifying sustainable funds and of an Equity Investment Funds (FIP) annex. This annex replaces the FIP Code, which we maintained in partnership with the Brazilian Private Equity and Venture Capital Association (ABVCAP) and was repealed on January 01, 2022. Accordingly, self-regulation of the product was entirely under ANBIMA’s governance.
From a transparency standpoint, we implemented the pilot project of the managed portfolio database for receiving information and preparing reports. In 2022, we will continue our talks with the CVM in order to formalize an agreement so that the market can send daily data on investment funds to ANBIMA only, reducing compliance costs for the investment fund industry. Currently, financial institutions send this information to both entities.
Sustainability
The Association has been spearheading and participating in sustainability-related actions in the financial and capital markets for over a decade. In recent years, the issue has gained even more relevance, and has become an urgent agenda for the third-party asset management industry. It has also become a priority for ANBIMA, with an agenda based on two pillars: disseminating content and encouraging the adoption of good practices. Throughout 2021, our efforts focused on three main initiatives:
- Improve sustainability databases, with a survey published in December
- Set criteria to identify ESG funds and update ANBIMA’s ESG Guide: the rules were released in December, and the guide was published in January 2022
- Propose content on sustainability to include in ANBIMA certifications: new approved content will enter our certification exams in 2022
Portrait of sustainability on the capital market
Coordinated by the Sustainability Advisory Board, the survey had two stages: a qualitative stage, with the participation of 144 executives from member institutions – 72% of which are asset management firms and 16% are banks. In this stage, different perceptions and patterns of market behavior on sustainability were identified. The second stage quantified the profiles and mapped out the maturity of this ecosystem in ESG practices. See the survey results here
Sustainable funds: definition, guidance, and self-regulation
We have prepared criteria for identifying sustainable funds via self-regulation. The rules went into effect in January 2022 for fixed-income and equity funds. Funds with a 100% sustainable investment objective/mandate may use the suffix “IS” (which stands for Investimento Sustentável, or Sustainable Investment) in the fund name, provided they meet all criteria and requirements and do not have any investments in the portfolio that compromise the sustainable investment mandate. Funds that integrate aspects into their management process, but do not have sustainable investment as their primary objective, are also recognized. They cannot use the “IS” suffix, but they are differentiated from the others: they can use the phrase “this fund integrates ESG issues in its management” in their respective marketing materials.
Throughout 2021, we worked on the second edition of the ESG Guide. The aim of the Guide is to help managers understand the rules of self-regulation, presenting positive and negative practical examples and providing conceptual references on the matter.
Sustainability was also the motto for two events in 2021:
Challenges for adopting ESG criteria in the capital markets (3/12)
Moderated by Cacá Takahashi, of BlackRock, vice-president of ANBIMA and coordinator of the Association’s Sustainability Advisory Board; the live-streamed webcast addressed the foremost difficulties encountered by institutions to advance the ESG agenda. The meeting also featured two experts: Fernanda Camargo, founding partner of Wright Capital, and Luiz Maia, investor advisor of Brookfield and vice-chairman of ANBIMA’s Ethics Committee. Both also serve on the Sustainability Advisory Board.
- 133 views on Workplace
- 460+ views on YouTube
Investing in sustainability (6/30)
A webinar led by Gabriel Azevedo, Head of the Social, Environmental and Governance Division at IDB Invest, who addressed the issuance of sustainability papers and the main steps companies take when structuring thematic securities.
Diversity and Inclusion GRI 103-2, 103-3 | 405
Social aspects have become more prominent on the ESG (Environmental, Social and Corporate Governance) agenda, especially with the intense debate on inequality and prejudice that has taken over public opinion in the last two years. In this scenario, members demanded the strengthening of ANBIMA’s performance regarding the Diversity and Inclusion agenda, within the scope of the Association’s sustainability agenda.
With the aim of promoting and strengthening Diversity and Inclusion actions in the markets represented by ANBIMA, representatives of 25 institutions formed a working group to design the Association’s strategy for this issue. The first step in this effort was to conduct a survey in order to gain an understanding of institutions’ perception of Diversity and Inclusion, what strategies they have adopted to address the issue, and their expectations regarding ANBIMA’s role and performance to foster the evolution of this agenda on the capital market.
By late 2021 the survey results were already known and formed the basis for building an action plan that will guide our work in creating a Diversity and Inclusion network that promotes the exchange of experiences between member institutions, defining good practices and industry benchmarks, and discussing strategies and initiatives that contribute toward the evolution of the agenda among all our members. After being discussed in the working group, the survey results were published in early 2022, in order to stimulate debate on the results with member institutions and other representatives of civil society as well. Learn more here.
We continue to support initiatives by member institutions or partners that also contribute toward strengthening Diversity and Inclusion in our markets. Among them, we highlight the following:
Letter to the Market from the Board Diversity Program – In January 2021 we endorsed this initiative created jointly by B3, the Brazilian Institute of Corporate Governance (IBGC), the International Finance Corporation (IFC), Spencer Stuart, and Women Corporate Directors (WCD). This is an open letter to encourage pension funds, private equity funds, and chairpersons of listed companies to include women and other forms of diversity on their boards and supporting committees.
GRI 102-12
The Somamos Project – We supported the Febraban Education Institute (Infi) in this project to develop free professional training for young black men and women, to improve training, and to expand chances and opportunities in the job market, particularly in the financial sector. The program’s technical content includes preparatory classes and exams for CPA-10 certification.
The “+ Diversidade” Project – an initiative by Instituto Ser + in partnership with Deutsche Bank, consists of 250 hours of online training aimed at 30 young black women aged 18 to 29. From March to September, these young women had access to content on citizenship, administration, communication, the financial market, information technology, blackness, gender, the job market. The project also offered professional mentoring with volunteer executives. The most outstanding young women in the area took the CPA-10 exam free of charge; after certification, we began monitoring the employability of each one of them.
Innovation
Our innovation agenda looked at the needs of investors and members. On the investor side, the proposal sent to the Central Bank of Brazil with the initial scope for open investments suggested that information sharing starts with products and services relevant to retail customers. The initiative is detailed in the investor’s agenda.
During 2021, we advanced in the development of an associative sandbox – which resulted in the analysis of a case to be treated in the future in an experimental environment. The objective is to bring to the member companies that can integrate our ecosystem, without necessarily following the current rules provided for in the codes of best practices.
The hackathon and pitch days agenda has been postponed to 2022, considering the challenges of holding the events even with the restrictions imposed by the pandemic. The idea of both events is to bring the Association closer to the innovation community, selecting innovative companies and projects that respond to ANBIMA’s business challenges and the markets we represent. The selection process of partners to host the events was completed in December 2021. Both will be scheduled throughout 2022.
We also created criteria for joining the ANBIMA Feed that facilitate access for startups to our data platforms. Furthermore, since February 2021, the access service to our database offers a package of information on offshore funds, providing registration and periodic references of these products, including historical series of net assets, funding, redemptions and changes in units and fees.
With the inclusion of offshore funds, ANBIMA Feed currently has eight information packages, which also include federal government bonds, debentures, Real Estate Receivables Certificates (CRIs) and Agribusiness Receivables Certificates (CRAs), indices, investment funds governed by ICVM 555 and structured funds. The platform is one of the largest in the Brazilian capital market: it gathers updated and verified data directly from financial institutions.
Concurrently with the initiatives for associates and investors, we also advanced internally on the innovation agenda. The strategy prioritized data analysis and the use of agile methodologies with the purpose of mainly strengthening the initiatives of education, products and relationship with members.
The new projects were developed based on management techniques and practices that privilege agility, flexibility and intense collaboration between areas. We started experimenting with the formation of squads, multidisciplinary teams that worked on projects such as the ANBIMA Summit, o Partiu Investir and the associative sandbox pilot project.
At the same time, an external consulting firm supported the continuity of the supervision's repetitive tasks robotization project, which ended the year with 36 robots, 11 processes performed by artificial intelligence and 11 digital tools.
Taxation
Working within three agendas – tactical, protective, and propositional –, we maintained intense dialogue with the Executive and Legislative Branches of the government in 2021. In the protective agenda, we monitor the progress of tax reform. To seek advances and minimize negative impacts on the taxing of investment funds, we held meetings with members, representatives of the Ministry of Economy, the Federal Revenue Service (RFB), the Central Bank of Brazil, and advisors to the authors of the bill.
In this tax reform, we saw a chance to simplify taxation and make the products easier for investors to understand. The text that was sent to the Senate, however, regressed in certain aspects. We formed a working group to address the issue in 2022.
In the propositional agenda, since 2020 we have been discussing Federal Revenue Service (RFB) Normative Instruction 1585, which regulates the taxation of investment products. Due to the tax reform, this bill continues in 2022, and we have resumed the proposal for appropriate updating. Tributary Support Forum will evaluate it and then forward it to the Federal Revenue Service (RFB).
In addition to the initiatives that are part of the Action Plan, other projects focused our attention in 2021:
ANBIMA Summit 2021
With the credibility of 20 years of our Investment Funds Congress, the ANBIMA Summit debuted in 2021 by expanding horizons: the event featured more than 30 hours of discussions on investment management, advisory and recommendation activities, and was attended by market references and experts.
Held from October 25th to 29th, the free event provided participants with an opportunity to network and expand their knowledge, with new connections and innovative experiences.
The 2021 ANBIMA Summit was attended via different online platforms. The future of asset management, practices of sustainability, implementation of open banking, the role of investment influencers in the market, innovation, and macroeconomic challenges are among the topics addressed at the congress, which are still available on the ANBIMA Summit channel on YouTube.
+ 118,000
views on social media
80 speakers
remote and in-person across the five-day event
5,000 participants
registered in an exclusive platform for online networking
9,6
was the average market satisfaction score
Panels in interactive
and innovative formats: interviews, debates, TEDs, video reports
40,000 simultaneous views
in webcasts on LinkedIn, Twitter, Facebook, YouTube, and on the event’s website
Accessible content
audio description, Brazilian sign language, closed-captioning/subtitles. Simultaneous translations in English and Portuguese
14
sponsors
Investor Education and Certifications
In addition to certifying market professionals, we offer continuous improvement through our education platform, which concentrates on all of the courses offered by the Association. Since 2020, all course content is offered free of charge, and last year we reformulated the tool. The changes were released to the public in early 2022: the platform follows the learning management system (LMS) model, a format that allows for the subjects to the created, managed and organized by learning trails. On these trails, users can consume the material by knowledge level, and even by specific skills or themes.
Throughout 2021, platform access data were significant:
233,907
registrations
403,797
users
9,24
the average number of pages accessed
04:32
the average browsing time
The top 5 courses of 2021:
- 1st Financial Market from A to Z
- 2nd Company Valuation
- 3rd Fundamentals of Economics and Finance
- 4th Investment Funds
- 5th Ethical Mindset
Our certifications for market professionals – CPA-10, CPA-20, CEA e CGA – record continuous growth, both in the number of registrations and in the number of active certificates. In 2021, there were record numbers, which reflects the greater interest in these titles by people and institutions, a clear indicator of improvement in market professionals’ qualification levels.
Below we show the evolution of the numbers of our certifications:
A milestone in 2021 was the entry into force of the new CGA (ANBIMA Management Certification), which we reformulated to adapt to the reality of the market. There are now three certifications which complement one another: the CGE, for professionals who manage structured funds; the CGA (ANBIMA Manager Certification), for managers of fixed-income, equity, foreign exchange and multimarket funds and managed portfolios; and the CFG (ANBIMA Management Fundamentals Certification), entry-level certification for those who wish to work in the asset management market; it is not mandatory for any specific job duty, nor does it qualify the professional to be a manager, but it is pre-requisite for the others, serving as an introductory certification.
The change follows market trends for a better definition of responsibilities for area professionals. Moreover, it is fully aligned with our purpose of promoting continuing education.
The first exams in the new format began in June. With the entry into force of the new certifications, all professionals who were already certified in the previous model automatically became holders of the three new certifications.
Digital Influencers GRI 102-43
By disclosing more accessible information about investments, the activity of digital influencers contributes toward the financial education of Brazilians – with gains for society as a whole. Therefore in 2020, we started monitoring them on a daily basis – with support from the Brazilian Institute for Research and Data Analysis (IBPAD), in order to understand who these agents are, how they behave, and the level of influence they have on their audiences.
This up-close look contributes to the Association’s strategy in several ways: identifying market trends in real-time, which can provide input to the representative groups; overseeing advertising content about investments; improving our communication, marketing, and financial education agendas; and generating insights for the activities of members.
266 influencers
160,000 posts
74 million
followers
As a result of this monitoring, we released an unprecedented study on this universe, with data collected from September 2020 to February 2021. We identified 266 influencers on Facebook, Instagram, Twitter and YouTube, which jointly account for 160,000 posts. They speak with 74 million followers, a figure that surpasses the reach of the social media accounts of the foremost news outlets in Brazil (69 million followers).
The repercussion of the study was positive amoung Association members and the press, which is why it will be continuously updated – a new edition was launched in early 2022. Other specific clippings were published, and an exclusive weekly report for members began being disseminated. The study is available for download on our website; a video is also available on YouTube.
Additionally, in October we entered into an agreement to share our digital influencer monitoring information with Brazil’s Securities and Exchange Commission (CVM). The partnership allows the regulatory agency to identify any social media personas that go beyond the limit of financial education and encroach into product recommendation – an activity that requires registration with the CVM.
Summing up our oversight activity
Completely adapted to remote work because of the COVID-19 pandemic, our market oversight activity remained in full swing throughout 2021, with advances in the digitization and automation of tasks through robotic process automation (RPA) to collect and analyze data. New digital tools and systems were engaged and deployed to strengthen our operations, mainly for overseeing investment funds, public offerings, and distribution of investment products.
We closed out 2021 with 1,184 institutions following the rules of the ANBIMA self-regulation codes, 17% more than at the end of 2020. In addition to this increase, new topics have recently entered our self-regulation activity, such as managed portfolios, new fund liquidity management rules, and sustainable investment funds (ESG), increasing the complexity and scope of our supervisory work.
ADuring the year, 9,200 requests for clarifications were recorded, nearly double the number recorded in 2020, and more than 1,700 guidance letters (an increase of more than 50% over 2020), which reinforces our educational role in recent topics such as managed portfolios and transparency in compensation and trading of COE/CCB (Structured Operations Certificates/Bank Credit Bill).
Parallel to this, several statements of commitment were signed, thus demonstrating institutions’ commitment to improving and revising any practices that disagree with our rules, in addition to implementation. Further, more than 1,500 fines were applied during the year; most of the irregularities refer to errors and delays in sending information to register the funds in our database. All proceeds from payment of fines are earmarked to fund educational events and other actions promoted by ANBIMA.
It is also worth highlighting the expansion of partnerships with the CVM in 2021, to take advantage of the oversight activity performed by ANBIMA with regard to investment funds, by including our supervision of the framework/mandate of the funds’ portfolios, and an agreement concerning the monitoring of influencers that talk about investments on social media.
Below are the main figures for this area:
5,108
Requests for clarification
1,286
Guidance letters
1,017
Objective fines
25
PAIs Procedures for Investigating Irregularities
1
Letters of recommendation
12
Lawsuits
21
Statements of commitment
5
Judgments
4,516
Requests for clarification
1,139
Guidance letters
1,254
Objective fines
12
PAIs Procedures for Investigating Irregularities
3
Letters of recommendation
14
Lawsuits
14
Statements of commitment
9
Judgments
9.215
Pedidos de esclarecimento
1.772
Guidance letters
1.526
Objective fines
9
PAIs Procedures for Investigating Irregularities
1
Letters of recommendation
5
Lawsuits
28
Statements of commitment
5
Judgments
Eventos
In June, we held the Self-Regulation Week, featuring five days of debates on different topics of interest to members.
The event – which took place June 21st to 25th, was streamed exclusively online through the Member Space on Workplace, from 12 noon to 1 pm daily. The live webcasts addressed issues such as ESG funds, distribution of investment products, the investment fund industry, the structuring of public offerings, and agreements with the regulatory agency.
The complete content can be found on our YouTube channel as well as the podcast platforms Spotify, Deezer, Apple Podcasts e Google Podcasts.
Below is a daily breakdown of the discussions:
June 21st – ESG Funds
138 views on Workplace
+ 440 views on YouTube
June 22nd – Challenges of remote work
112 views on Workplace
+ 160 views on YouTube
June 23rd – Distribution of investment products
107 views on Workplace
+ 270 views on YouTube
June 24th – Latest developments of the Public Offers Code
115 views on Workplace
+ 130 views on YouTube
June 25th – Advances in agreements between the CVM and ANBIMA
102 views on Workplace
+ 170 views on YouTube
Selic: availability, security and integrity
With 99.96% availability in 2021, the Special System for Settlement and Custody (Selic) operated above the target set for the year, which was 99.8%. We have been supporting the operation of the Central Bank of Brazil’s system – through a public-private partnership – for 42 years.
Integrity
Another positive result was that the Offers Performance Index (IDO) closed out 2021 at 99.87%, outperforming the original target of 99%. This indicator measures the availability of the systems used in the auctions carried out by the Central Bank of Brazil.
To ensure the system’s excellent performance, the devices that store information were replaced and will be upgraded every five years. The change cost around R$ 2 million and was carried out at all three data centers (two in Rio de Janeiro and one in Brasília).
Security
Selic now has a new online address: www.rtm.selic.gov.br, this replaces the old address www.selic.rtm, which was deactivated in April. The change was made because a new rule issued by the CA/Browser Forum (a consortium of certification authorities) now precludes digital certifiers – which guarantee the security of the site before the user accesses it – from checking private addresses. With the “.gov.br” at the end, the Selic domain became public and continued to be validated by any internet browser, for greater security and easier access.
Two other projects also got underway: Selic Blindado (Shielded Selic) and Selic Resilient (Resilient Selic). The first one includes cybersecurity actions that are always up-to-date, to face the advances in cyberattacks and to keep Selic safe. The second one seeks to ensure that, even in the event the system is attacked, it will manage to find a way out of the incident.
According to Selic’s strategic planning for 2022–2025, both programs will continue, in addition to the development of the Selic Conecta (Selic Connects) project. With annual targets, the project consists of a platform for sharing Selic data and participants’ data, like the ANBIMA Feed.
Pre-Matching Platform
New features were included in the Pre-Matching platform in 2021, in response to requests from the market. Launched in 2020, the platform automatically checks information on operations with government bonds.
In May, the update allowed “one-to-N” or “N-to-one” trading (i.e., trades between one party and several buyers/sellers) to be included in the system. The matches of these operations can now be completed by independent parties, avoiding the need to wait for the other ends to enter the data to finish checking such operations. The Chinese wall was also implemented, whereby institutions can delimit participants’ access to the system, thus mitigating possible conflicts of interest.
In December, a tool that allows institutions to divide purchases of government bonds into lots at the Central Bank of Brazil’s repurchase and resale agreement operation auctions (those in which it offers securities to adjust market liquidity) is now in the testing phase.
Other initiatives
In the second semester, the Central Bank of Brazil presented information relating to Selic pursuant to the guidelines contained in the Principles for Financial Market Infrastructures: Disclosure framework and assessment methodology. These principles (PFMI) are international recommendations that must be followed by payment systems, central depositories, custody and settlement systems, central counterparties, and other entities that provide infrastructure for financial institutions.
The document provides the market with clear guidelines on matters relating to Selic’s governance, operations and risk management, and describes the system’s infrastructure requirements. This includes topics such as the regulation that lays down the legal basis for operations, liquidity and credit risks, as well as availability and access criteria, among others, framed within the 24 principles recommended by the Bank for International Settlements (BIS) and by the International Organization of Securities Commissions (Iosco).
We implemented voluntary remunerated deposits, a new monetary policy instrument whereby financial institutions can deposit funds with the Central Bank of Brazil, whenever they wish, in exchange for previously agreed-upon remuneration. The mechanism will contribute toward managing the liquidity of the Brazilian market, and is not expected to impact the public debt, unlike the repo operations that are currently used.
Compliance and Legal
After revamping internal policies and rules and reviewing our Code of Ethics and Professional Conduct in 2020, we consolidated the Integrity Program training calendar, with a series of training activities for employees.
The Be Compliance platform – a tool adopted in 2020 that gathers documents and policies related to ethics – concentrated on seven of the eight courses in the distance-learning format: Code of ethics; Basic Concept of Compliance; GDPA – Basic Concept of Data Protection; Third-Party Risks; Combating Workplace Bullying and Sexual Harassment; Anti-Corruption and Gratuities. There was also training on the directives established in the information security policy – based on the series The Inside Man – available on the international platform Knowbe4.
We organized workshops with experts who addressed issues including anti-corruption policies, gratuities, relationships with public officials, and consumer protection. Respect in the work environment (combating sexual harassment and bullying) and Brazil’s General Data Protection Act, or “LGPD” (Law 13709/2018) were also part of the agenda.
We implemented the GDPA (“LGPD” ) Program, with the aim of looking for possible gaps and proposing improvement plans that ensure performance within the legal limits. Another effort that intensified during the year was related to AML/CFT (Anti-Money Laundering and Counter-Terrorist Financing). We advised the Legal Forum on the work of the AML/CFT Commission, which made significant progress with the Central Bank of Brazil for the identification of final beneficiaries of investment funds.
The issue was widely debated throughout the year. Two of these webcasts are available on YouTube: Changes to AML/CFT, content, in March, and Money laundering prevention: Identifying the final beneficiary in exclusive funds, in June.
People GRI 102-7, 102-8, 103-2, 103-3 | 201, 401, 405
In 2021, the Human Resources department gave way to the People, Health and Sustainability department, created so as to better reflect the new responsibilities of the area, especially regarding the consolidation of an integrated sustainability strategy. Structured to guide the ESG strategy in-house, as well as to monitor and advise all the Association’s main divisions, this department spearheads or supports various initiatives.
At the end of 2021, the area worked on defining the Association’s new sustainability strategy, including public commitments linked to the UN Sustainable Development Goals. Starting in March 2022, work began on disseminating the strategy and identifying the actions to put it into practice.
Among the initiatives associated with the strategy is the implementation of a robust diversity and inclusion program, which we present below.
Diversity
census
To increase diversity among the employees, we structured an internal program whose starting point was a census conducted to diagnose our level of maturity regarding this issue. Here are the results:
All positions
26,06%
Black (98)
73,93%
Other races (278)
Managerial positions
91,11%
White (41)
8,89%
Black (4)
PWDs per position
7
Profissional
4
Support
PWDs by gendero
54,55%
Men
45,45%
Women
The census served as the basis for defining an action plan with targets and metrics, which have racial inclusion as a priority; this includes linking variable pay to the results achieved in Diversity and Inclusion, and is an institutional goal for 100% of employees.
To develop and carry out the initiative, we have the support of the consulting firm Empodera, which specializes in D&I projects. During the first ten-month journey, there were in-house actions geared toward improving writing skills and raising awareness, some of which included 75% of the employees. With this high degree of spontaneous engagement, progress was rapid.
We also created the Diversity Volunteers group, with 77 people. In late 2021, the structuring of four affinities groups marked yet another step in the consolidation of the strategy. The groups focused on Race, Women in Leadership Roles, People with Disabilities, and LGBTQIA+, each one of which are Executive Committee members, as sponsors.
In racial D&I, the target within four years is to have 52% of our workforce composed of Black and mixed-race people. In 2021, however, even before the target was defined, our selection process already became more inclusive – 48 Black or mixed-race people were hired. This reflects the result of the in-house actions for improving writing skills and raising awareness during the first ten-month journey.
Number of Black or mixed-race people hired in 2021:
27
Profissionais
19
Interns
2
Supports
We ended 2021 with 384 employees, 7% more than in the previous year. These people are mostly located in São Paulo (58.6%), a city that gathers all business areas. The Association’s headquarters are in Rio de Janeiro, with Administrative, Legal, and Human Resources activities, as well as the Selic office, located in the Central Bank of Brazil’s building.
All employees work eight-hour shifts, apart from interns (who work six hours a day) and young apprentices (who work four hours a day). Interns and apprentices receive all the benefits offered to other employees. GRI 401-2
Employees per office
The gender proportion among employees remained practically unchanged from the previous year: 57% men and 43% women. Among leaders, women head two of the five superintendencies.
In terms of age, the team is made up of professionals of all ages; in 2021, 59.6% of them were between 30 and 50 years old. In December, the youngest was 18 and the oldest was 65. We seek to give everyone a chance based on competence and not age; proof of this is that we have a 35-year-old intern!
Positions
by gender GRI 405-1
Our age
Time at the
organization
Organizational Chart
The team is divided into five main divisions: Institutional Representation; Market Oversight; Data Intelligence, Operations & Technology; Communication, Education & Certification; and Selic. In addition, there are three departments that report directly to the general superintendence: Controllership and Administration; People, Health & Sustainability; and Legal Counsel & Compliance.
CEO
Zeca Doherty
CEO
Zeca Doherty
Employer brand
We seek to consolidate ANBIMA as an employer brand through work commanded directly by our CEO with the involvement of all leaders. The focus is on training people and establishing succession plans capable of attracting and retaining talent.
In the field of training, one of the latest developments is in our internship program, which now has a project to prepare professionals to work in the financial market, and not necessarily at the Association. The program – which got underway in July – consists of five people hired for a two-year period, during which time they will switch areas/departments every seven months and receive technical training and development of soft skills. Selected by an external consulting firm, the process did not set age limits for participants or limit enrollment to students from top universities.
As for recruitment and selection, the biggest challenge of 2021 reflected a particularity of the job market: hiring technology professionals. This issue specifically impacted the Organization, given the moment we are going through: the Association is experiencing a process of evolution, focused on consolidating its vocation as a data hub for the market, incorporating increasingly analytical capacity to qualify the information we return to members and to society in general. In addition to the technology per se, the foundation for this is people – professionals for whom the demand is rising sharply.
Accordingly, we also invested in the training of a more digitalized team, with leadership training and the use of streamlined methodologies.
Hybrid and safe work GRI 103-2, 103-3 | 403, 403-3, 403-6, 403-8
While 2020 was a year of learning, 2021 was a year of stability. We received good feedback from the market on our way of dealing with remote work, with no reports of lost productivity.
As a result, the work-from-home model that started in March 2020 continued in the first half of 2021, with 100% of the team working remotely. Starting in September, a hybrid work schedule was created for the offices in São Paulo and Rio de Janeiro (Mourisco), where managers began working in person three times a week, and the other employees, twice a week. Following the Central Bank of Brazil’s guidelines, the Selic team remained at home, as did pregnant employees or those with children less than one-year-old.
Space occupancy was maintained at 40%, and N95/PFF2 masks were handed out, with mandatory use in the offices. Employees were also encouraged to participate in the vaccination campaign to ensure the immunization of as many people as possible. Additionally, employees and their dependents covered by our health plans were able to receive flu vaccines (H1N1) free of charge.
Economic–financial results GRI 103-2, 103-3 | 201
System integration and migration from analog to digital processes allowed for gains in operational efficiency in the corporate controllership area. The focus was on reducing costs through process automation and financial management.
In 2021, we recorded the lowest default rate in history: in July, the index reached 1.41%. In Consolidated for the year, several initiatives favored the Association’s cash account, such as:
- Implementation of a specific portfolio to manage cash, which obtained profitability above the Selic and IMA-B rates;
- Renegotiation of lease contracts, reduction of corporate condominium maintenance fees, and renegotiation of service agreements;
- Possibility of payment in installments for certification exams, which now accept payment via the Pix instant payment platform.
Lowest default rate in history: in July, the index reached 1.41%.
Below, we present our financial statements for the year. Available for download at this link, PwC audited the results. After a three-year engagement with KPMG, we switched to independent auditing, following the best governance and controllership practices.