The MERCOSUL is a free trade treaty between its member countries.
Its basic structure
is made up of the Common Market Council - CMC (the highest deliberative
body) and the Common Market Group - GMC (the executive body).
The forums for technical discussions are the Services Group and the 12
different working groups.
The chairmanship of Mercosur and consequently of each of the working groups
is set rotationally, as follows:
On the SGT-4, coordinated by the Brazilian Central Bank
CVM coordinates the Capital Market Commission. Currently, such commission is discussing clearing
and settlement in the region and a legal framework designed for enabling cross-border commercialization
of mutual funds.
This Capital Market Commission already prepared a document
which sets out minimum regulatory standards for the region, later
approved by the Common Market Council (the CMC) as Decision no. 8/93.
This document establishes the minimum required regulations to
be followed by member countries
of the MERCOSUL for issuers of securities
(companies), investment funds,
exchanges and brokers,
independent auditors,
and systems for clearing, settlement, and custody.
Another significant document for capital markets
was the CMC's Decision no. 13/94, which harmonizes the content
and characteristics of the quarterly and annual reports disclosed
by public companies issuing securities.
The Working Group on Investments (SGT-12) was created on 2000 through the
GMC's Resolution 13/00.
Since its creation, CVM participates of the discussions of this group, which is coordinated by
the Ministry of Economy.
Among other issues, the SGT-12 works to coordinate Mercosur's positions towards the
FTAA's Group on Investments.
Another issue which is discussed by this group are Mercosur's Investment Agreements, named
Colonia Protocol (investments within Mercosur) and
Buenos Aires Protocol (investments with third parties).
Finally, CVM participates on the Services Group, coordinated by the
Ministry of Foreign Affairs.
Such group has a wide scope of issues, dealing from sectorial market access
(telecommunication, energy, finance, etc.) to services provided by individuals. Under CVM's jurisdiction,
this is represented by portfolio managers, auditors, consultants and investment advisors. In addition,
the effects of the Montevideu Protocol,
the basic framework for Services in Mercosur, is also analyzed.
This forum is also responsible for coordinating Mercosur's positions towards the
FTAA's Group on Services.
The signatories to the Asuncion Agreement (MERCOSUR) are Argentina, Brazil, Paraguay, and Uruguay. Bolivia and Chile have signed cooperation agreements with the MERCOSUR and may eventually become members.