Brazil: Regulatory Agency Law Needed

Brazil needs to create rapidly a general law for regulatory agencies to ensure their autonomy and independence, a senate subcommittee has recommended, news service Agencia Estado reported.

The recommendation was made by senator Garibaldi Alves Filho of the regulatory framework subcommittee, which is part of the senate's economic affairs committee (CAE).

According to Filho, most regulatory entities lack adequate legislation providing guidelines on areas such as budget management and selection of directors.

"Regulatory agencies are responsible for the health of the regulated market, which provides the fundamental elements for creating an environment that is attractive for private investors," Filho said.

One recommendation is to create a framework of guidelines on how to fill vacancies when directors of the watchdogs leave, while the regulator is waiting for replacements to be appointed by the president.

Delcídio Amaral, president of the subcommittee, proposes that when the term of the existing director of a regulatory agency is coming to an end it should be automatically extended until a replacement is found.

Amaral also suggested implementing more rigid criteria for selecting directors such as a requirement that they have at least 10 years of professional experience in the area they will be overseeing.

Posted to the site on 30th October 2007