Summary
The Brazilian Reference Form (FRE) for 2025, which is crucial for publicly held companies with a fiscal year ending on December 31, 2024, has a submission deadline of May 31, 2025. This form must be submitted via the CVM’s ENET system. The CVM’s 2025 Annual Circular Letter provides essential updates and compliance recommendations that issuers need to follow closely for successful filing.
Key Points
- The FRE must reflect the most current data available as of submission date.
- Key Environmental, Social, and Governance (ESG) indicators relevant to the business must be reported objectively.
- Issuers are encouraged to include self-identified demographic data for administrators.
- Changes in compensation structure must be disclosed accurately.
- Human resources data, including reporting of employees with disabilities, is now mandatory.
- Clear guidelines on related-party transactions have been reiterated.
- Companies can opt to re-file the prior year’s FRE to make updates if necessary.
Why should I read this?
If you’re connected to a publicly traded company in Brazil or just want to grasp the latest in corporate governance, this article is a must-read. With the submission deadline looming, it sheds light on significant updates you can’t afford to miss to stay compliant. We’ve done the reading for you—save time and make sure you’re in the know!