The National Banking and Securities Commission (CNBV) is working on a series of modifications so that the country’s investment funds and issuers report their Environmental, Social and Governance (ESG) criteria with greater transparency.
Jesús de la Fuente, president of the CNBV, explained that investment funds will be sought to reveal to the public whether they consider ESG criteria in the investment process, including whether they analyze the risks derived from these assets.
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“Funds must have minimum elements in their prospectus to be called ESG, which involves considering how their objectives, policies and investment regimes relate significantly to these factors,” the official said.
By participating in the 2023 Meeting of the Mexican Association of Stock Market Intermediaries (AMIB), the president of the CNBV trusted that with these new modifications there will be greater long-term investment and, therefore, the economic growth of the country will be promoted.
Along with these changes, he mentioned that work is also being done on the provisions applicable to broadcasters on ESG disclosure mechanisms.
This project provides for the implementation of international financial reporting standards on sustainability, as well as the disclosure by companies of the risks or effects that climate change may have on their businesses.
“A relevant part of this project will be being able to define to what extent investment assets are aligned with Mexico’s sustainable taxonomy. This will undoubtedly contribute to better transparency,” said Jesús de la Fuente.
According to the head of the CNBV, these changes are necessary not only to advance sustainability in the country, derived from the Sustainable Taxonomy of the Ministry of Finance, but so that the stock market sector has an updated regulatory framework aligned with best practices. international.
He added that these changes are added to those already proposed in the reform of the Securities Market Law, which is still pending approval.
“I am sure that the projects will boost investment in companies and encourage better identification of risks on issues related to sustainability, in addition to facilitating financial innovation,” he added.
Statistics from the Ministry of Finance and Public Credit (SHCP) indicate that at the end of May, the net assets of investment funds amounted to 3.7 trillion pesos, of which 2.3 trillion pesos were managed in 247 debt funds. and the rest in variable income and capital investment mechanisms.
Pending, stock market growth
In his speech, Álvaro García Pimentel, president of the AMIB, considered that the securities market still has a lot of room to grow, as well as progress in regulatory matters to strengthen the investment system in the country.
“In addition to the reforms that are now being discussed in the Chamber of Deputies, we need to grow the infrastructure of the stock market, deregulate various operational and product aspects to strengthen the stock market investment system, including products that help strengthen savings , investment and also the financial education of Mexico,” he explained.
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From his perspective, Mexico’s public finances can also be strengthened through the stock market, a practice that happens in other countries not only with the placement of bonds, but also the capital of the state’s productive companies.
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