Lula Nominates Otto Lobo to Lead Brazil's CVM

Overview

• The nomination was published Wednesday in the Diário Oficial, with Lobo slated to complete the term through July 2027 pending a Senate CAE hearing after the congressional recess.
• Lula also nominated lawyer Igor Muniz to the board; even if both are approved, one seat remains open, with Marina Copola and João Carlos Accioly currently serving.
• Money managers and the Institute Empresa warned that the choice could weaken governance and raise perceived risk by undermining the CVM’s autonomy and investor confidence.
• Skeptics cite Lobo’s contentious double vote in the Ambipar OPA case that overruled the technical staff, a decision the CVM declined to reconsider late last year.
• Valor reported, citing sources, that the pick was part of broader political negotiations linked to a bid to place Jorge Messias on the Supreme Federal Court after a technical favorite backed by Finance Minister Fernando Haddad fell out of contention.