LATIN AMERICAN CORPORATE GOVERNANCE ROUNDTABLE JUNE, 2013 PRESENTATIONS

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1 LATIN AMERICAN CORPORATE GOVERNANCE ROUNDTABLE JUNE, 2013 PRESENTATIONS

2 Table of Contents Session 1: Trends and Factors Impacting on Equity Market Growth in the Region Trends and Factors Impacting on Latin American Equity Market Development Trends and Factors Impacting on Equity Market Growth in the Region Daniel Blume, OECD OECD Page 5 Alexandre Di Miceli da Silveira, University of Sao Paulo (USP) Brazil Page 19 Session 2: Small and medium-sized enterprises and their access to Latin American equity markets The Cyprus Crisis: Effects on the financing of SMEs Juan Munguira, CNBV Spain Page 56 Small and medium-sized enterprises and their access to Latin American equity markets: The Brazilian Case Andre Pitta, BM&FBOVESPA Brazil Page 86 Session 3: State ownership in Latin American capital markets: corporate governance challenges and impacts Gobierno Corporativo ISA Como Empresa Estatal Alberto Mauricio Bernal, ISA Colombia Page 108 Empresas de propiedad estatal dentro de los mercados de capital de América latina: desafíos e impactos del gobierno corporativo Jessica Andrade, SENPLADES Ecuador Page 114 2

3 Table of Contents Session 4: Break-out group discussions: Corporate Governance Stock Exchange Indices Around The World Pasquale di Benedetta, World Bank World Bank Page 120 Latin American Corporate Governance Roundtable Erick Lagos, Lafise Nicaragua Page 132 Financiamiento para PYMES: implicaciones de gobierno corporativo José Alberto Garzón Gaitán, Bancoldex Colombia Page 140 Session 5: Related Party Transactions Task Force Recommendations: Country Progress and Emerging Good Practices Related Party Transactions Task Force Recommendations: Country Progress and Emerging Good Practices Mike Lubrano, Cartica Capital United States Page 153 Principles of Corporate Governance Gisélia da Silva, CPFL Energia Brazil Page 165 Session 6: Reports of breakout groups Session 7: Institutional Investors and Corporate Governance: Country Responses to Roundtable Recommendations OECD Mesa Redonda Latinoamericana De Gobierno Corporativo 2013 El Papel de los II s en el Fortalecimiento del Gobierno Corporativo de los Emisores de Valores en Colombia Respuestas a las recomendaciones de la Mesa Redonda Luis Valdivieso Montano, AAFP Clara Eugenia Castillo López, Superintendencia Financiera Peru Page 175 Colombia Page 186 José Luis Estrada, Asfondos Colombia Page 190 3

4 SESSION 1: TRENDS AND FACTORS IMPACTING ON EQUITY MARKET GROWTH IN THE REGION

5 Trends and Factors Impacting on Latin American Equity Market Development Latin American Corporate Governance Roundtable 20 June, 2013 Daniel Blume Senior Policy Analyst, OECD Corporate Affairs

6 Important Timing to Take Stock of Latin American Equity Market Developments Globally, there have been major transformations in market characteristics and practices To better understand these developments and how to address them, the OECD Corporate Governance Committee launched Corporate Governance, Value Creation and Growth with objective to: Facilitate meeting between savers and companies that need equity capital for growth and job creation; Facilitate the allocation of equity capital to the best investment opportunities; provide incentives for informed and long-term ownership Important to understand impacts on both OECD and emerging markets before considering revisions to the OECD Principles of Corporate Governance in

7 Changes and challenges in OECD markets Stock markets are fragmented New trading techniques, such as high frequency and algorithmic trading New instruments, such as exchange traded funds Investment strategies have become more complex Increased importance of institutional investors The universe of investors has become more complex and the way from savers to companies has become longer 7

8 Declining IPO numbers and volume Source: OECD calculations, based on data from Thomson Reuters, Datastream, stock exchanges + companies websites. Both the number and $ volume of IPOs have been steadily declining albeit with a small recent recovery fuelled by non-oecd companies , 63 % of all equity raised by non-oecd companies. Non-OECD markets have moved from serving 20% of all IPOs during to 60 percent from In OECD, average annual IPO volume decreased from USD billion in period to USD 69.6 billion in period 8

9 Impact on ownership structure In OECD, more than 40% of companies delisted from the exchanges over the last 10 years. Globally, listed companies with a controlling owner have become the norm. The US, UK, Ireland and Australia remain the only countries with fully dispersed ownership (average free float ratios of around 90%). But the share of global market capitalisation of dispersed markets has decreased by some 30% from 56% to 40% between 2000 and

10 Impact on shareholder monitoring and engagement High turnout in shareholder meetings: US: 81%, Korea: 75%, Japan: 75% and UK: 68% The degree of dissent in shareholder meetings is quite low; between 2-6% Increasing use of proxy advisory services Obstacles to shareholder co-operation and cross-border voting 10

11 What has gone wrong? Eroding investor confidence in stock markets Undermining the willingness of entrepreneurs and growth companies to use equity markets Unlevel playing field among investors and crowding out of long-term investment Weakness in price discovery (increasing use of dark pools, less focus on business fundamentals) Less attention to small and growth companies 11

12 How have these trends impacted on Latin America? Latin America markets have shared in the emerging market trend of growing market capitalization (28% in late 90s to 52% of GDP in ), IPOs and increased trading volume but still lag behind OECD averages. Ownership concentration and trading liquidity has changed very little (slightly less concentrated in Brazil). Fragmentation not a problem. However, growing use of ETFs and high-frequency trading risks to further concentrate trading in largest, most liquid companies. This may negatively impact on incentives for new, smaller issuers to list and for shareholders to monitor CG. 12

13 What are the preliminary country-level trends (subject to further RT input)? Argentina: lowest market capitalization and trading volumes amidst concerns about the role of state ownership in the market, but new capital market law aims to spur greater market participation. Brazil: Largest and most liquid market, and many cg reforms, but Novo Mercado-inspired IPO boom of has stalled more recently. Some concerns in terms of state intervention. Chile: Highest market capitalization as % of GDP and number of listed companies as % of population. Its active pension funds a strength, along with significant reforms during OECD accession. 13

14 What are the country-level trends? (cont.) Colombia: fastest growth in market cap as % of GDP (18% to 60%). Largest companies and highest market concentration (large groups and SOEs dominate market). Reforms have been ongoing and may continue as part of new OECD accession process. Mexico: Recent increase in equity market activity and value (highest price/earnings ratio in region). Main reforms in 2005; more recently established corporate governance index. Peru: Most rapid growth in stock returns but low trade volumes and lowest number of IPOs. Peruvian CG Principles under review. Ecuador: small and illiquid market, but listed companies as % of population not low. 14

15 Regional perspective: CG Achievements Consolidation and integration of trading Increased disclosure requirements in some markets Convergence of standards (IFRS, director independence, audit committees, voluntary codes) Requirements for pension funds, IIs to take CG into account Actions to facilitate shareholder participation 15

16 Challenges remain How to get mid-sized companies to list? How to ensure market conditions with concentrated ownership for effective functioning of cg frameworks? Balance between regulatory requirements and flexibility to adapt own practices How to improve board functioning How to address cg in conglomerate structures How to address global trading trends (ETFs, algorithmic and HFT) The role of the state in equity markets SME listing segments? Use of bonds 16

17 Issues for discussion How do you see the links between your countries CG improvements (or lack of them) and overall equity market growth and trading? What other factors besides CG should be considered to support equity market growth? Are the challenges identified in this report the right ones that Latin American policy-makers should focus on to support use of equity markets for economic growth? What further information (i.e. research) or shifts in the legal or regulatory framework or CG arrangements may be desirable to make equity finance attractive not only to large, established companies but also for smaller, innovative growth companies? 17

18 Thank you for your attention For more information, contact or consult 18

19 The 2013 Meeting of the Latin American Corporate Governance Roundtable Session 1: Trends and Factors Impacting on Equity Market Growth in the Region Alexandre Di Miceli da Silveira Professor of Corporate Governance University of Sao Paulo (USP) Founding partner of Direzione Consultoria Papers available at Quito, June 20th, 2013

20 Equity Markets in Latin America What has changed in Latin American Equity Markets in the past 15 years? (1/2) Topic Late 90 s (97-99) 2013 (latest data) Progress (1-4) Market capitalization of listed companies Total value of shares traded Low (28% of GDP) Very low (11% of GDP) Intermediate 4 (50% of GDP) Colombia as best in class (15% to 60%) Low (22% of GDP) Brazil as best in class (15% to 40%) 3 Number of listed companies Very low (4.1 listed companies per million inhabitants) Very low (2.5 listed companies per million inhabitants) 1 No best in class 4 Substantial progress 3 Some progress 2 Lack of progress Alexandre Di Miceli da Silveira 1 Deterioration 20

21 Equity Markets in Latin America What has changed in Latin American Equity Markets in the past 15 years? (2/2) Topic Late 90 s (97-99) 2013 (latest data) Progress (1-4) Market concentration Very high (Share in total market cap of top 10 most cap firms: 55%) Very high (Share in total market cap of top 10 most cap firms: 64%) 1 No best in class Free float level Low (25% of all outstanding shares) Low (23% of all outstanding shares) 1 No best in class Ownership concentration Very high (72% of all shares held by the 5 largest shareholders) Very high (76% of all shares held by the 5 largest shareholders) 1 No best in class Companies with dispersed ownership Virtually Nonexistent Rare but existing (9% of companies with 5 largest shareholders holding <50% of voting shares ) 3 Brazil as best in class (0% to around 7%) 1 Deterioration 3 Some progress Alexandre Di Miceli da Silveira 2 Lack of progress 4 Substantial progress 21

22 IPO Market in Latin America IPOs in Latin America: number of deals in the past 10 years IPOs in Latin America and the housing/credit bubble prior to the financial crisis IPOs in Latin America S&P/Case-Shiller Home Price Indices in the U.S. (lagged 1 year) Alexandre Di Miceli da Silveira % (155 out of 256) of the offers during the IPO wave possible reasons: 1. Easy credit conditions and asset bubble worldwide 2. Macroeconomic stability in Latin America (coupled with commodities boom) 3. Companies (fuelled by investment banks) making use of a window of opportunity resulting from hot/mispriced markets 4. Improved investor protection at the country-level (through regulation or selfregulation such as Novo Mercado) 5. Improved corporate governance practices at the firm-level Items 4 and 5 deal with structural changes to what extent they have been the cause of an increase of IPO activity in the region? 22

23 Revenues (000'US$) IPO Market in Latin America IPOs in Latin America: size of companies that decided to go public Revenues of Latin America companies that went public at the end of their IPO year from 2003 to 2012 (000'US$) Median Mean Median revenues (US$) of companies that went public Latin America U.S. ( ) 217 MM 95 MM Share of small firms* among companies that went public Latin America U.S. ( ) 17% 44% 0 Argentina Brazil Chile Colombia Mexico Peru Latin America Alexandre Di Miceli da Silveira Sources for U.S. data: Where have all the IPOs gone? Gao, X., Ritter, J., Zhu, Z Available at The JOBS Act: One-year anniversary An overview of implementation after one year and an analysis of emerging growth company trends. Ernst & Young * Small companies are defined as those with revenues below USD 50 million. 23

24 IPO Market in Latin America The Brazilian Case 1. Accounting for 56% of all IPOs in the region (143 out of 256) 2. Around 3/4 taking place in the IPO wave (106 out of 143) 3. Around 1/3 involving companies from the real estate and financial services industries (47 out of 143) 4. 52% of all capital raised went to the 20 largest IPOs, 15 of them nonindependent companies (carve-outs, demutualization, etc.) 5. Only 0.5% of medium and large companies are currently listed on the stock exchange (400 firms out of 66,000*) *Source: IBGE (Brazilian Institute of Geography and Statistics) statistics from the Business Demography 2010, available at ftp://ftp.ibge.gov.br/demografia_das_empresas/2010/demoemp2010.pdf Alexandre Di Miceli da Silveira 24

25 IPO Market in Latin America Why companies are not using primary equity markets as an engine for growth in Brazil? The supply-side of equity 1. There is an alternative (cheaper and less stringent) source of finance: the BNDES 2. Controlling owners may fear losing absolute discretion over all decisions as well as suffer excessive pressure from a market that is increasingly viewed as focused on the short-term 3. The increased transparency required from listed firms could affect a sort of competitive advantage in delicate subjects such as: Tax (reduced scope for tax evasion) Political donations (especially for those depending on government bids) Alexandre Di Miceli da Silveira 25

26 Primary equity markets as an engine for growth Aside the macroeconomic issues, why demand for equity is not as high as before 2008 in Brazil? The demand-side for equity 1. State interventionism at the industry-level (Electricity, Financial Services, etc.) as well as at the company-level (Petrobras, Vale, Banco do Brasil, Oi, etc.) 2. Corporate governance problems with listed companies: Frauds (Agrenco, Banco Panamericano, Banco Cruzeiro do Sul) Huge derivative losses due to improper risk management (Sadia, Aracruz) Controversial restructurings involving Novo Mercado firms (Cosan, Tenda) Dismal performance of high-profile companies ( X Group, HRT, etc.) 3. Evidence that some companies are more interested in corporate governance as a marketing tool than as a new approach for the business: Partial failure of Novo Mercado reform, 1/4 still refusing to disclose compensation as required by the CVM 2009 regulation, etc. Alexandre Di Miceli da Silveira 26

27 Next steps What can be done? Next steps to facilitate capital formation through primary equity markets in Latin America 1. Increase the transparency requirements of medium and large privately-held firms in order to reduce their competitive advantage raise the standards 2. Stock exchanges should foster a market structure that helps SMEs, favoring a long term investor model rather than replicating the trading model currently prevailing in developed markets (based on HFT, decimalization, etc.) 3. Continuous acculturation programs for privately-held firms are essential. Entrepreneurs should be convinced that good governance is valuable for their business, rather than mere formalisms required from third parties: Effective corporate governance enhance competitiveness by improving top level decision making and reducing the chance of negative surprises This creates long term value for their companies and society Alexandre Di Miceli da Silveira Some ideas for further investigation in Latin America 27

28 END Alexandre Di Miceli da Silveira

29 Mean return of equity IPOs in Latin America IPOs in Latin America: overview of the past 10 years Profitability of companies that launched their IPOs in Brazil ROE Comparison of the mean Return of Equity (ROE) three years before and after the IPO by year for companies listed on BM&FBOVESPA Mean three years before IPO Mean three years after IPO 25,0% More pronounced difference for companies that listed in 2007 and 20,0% in the first semester of 2008, at the peak of hot markets... 16,4% 20,7% 18,6% 19,4% 15,0% 14,2% 13,4% 10,0% 9,2% 10,6% 10,1% 10,2% 7,9% 6,1% 5,7% 6,8% 5,0% 3,7% 3,9% 0,0% ,9% NA Alexandre Di Miceli da Silveira 29

30 Mean return of assets (ROA) IPOs in Latin America IPOs in Latin America: overview of the past 10 years Profitability of companies that launched their IPOs in Brazil ROA 10,0% Mean Return on Asset (ROA) int the three years before and after the IPO for companies that went public in Brazil in the period 9,4% 9,0% 8,0% 7,0% 7,3% 6,0% 5,0% 5,0% 4,0% 3,0% 4,3% 3,3% 3,7% 3,5% 2,0% 1,0% 0,0% IPO-3 IPO-2 IPO-1 IPO IPO+1 IPO+2 IPO+3 Alexandre Di Miceli da Silveira 30

31 Mean Return of Equity (ROE) IPOs in Latin America IPOs in Latin America: overview of the past 10 years Profitability of companies that launched their IPOs in Brazil ROE 16,0% Mean Return on Equity (ROE) in the three years before and after the IPO for companies that went public in Brazil in the period 14,7% 14,0% 12,9% 12,0% 10,0% 10,2% 8,0% 6,0% 6,0% 5,5% 5,8% 6,8% 4,0% 2,0% 0,0% IPO-3 IPO-2 IPO-1 IPO IPO+1 IPO+2 IPO+3 Alexandre Di Miceli da Silveira 31

32 IPOs in Latin America Post-IPO stock performance of companies depending on their pre-ipo relationships with their underwriters IPOs with higher degrees of investor-underwriter conflict of interest are associated with market timing and lower post-ipo performance BHAR 1 year after the IPO -5% 1% -31% -56% Low Moderate High Highest BHAR 2 years after the IPO 4% -4% -29% -41% Low Moderate High Highest BHAR 3 years after the IPO -3% -14% -9% -33% Low Moderate High Highest Alexandre Di Miceli da Silveira Source: Santos, R., Silveira, A., Barros, L. Investor-underwriter conflict of interest and post-ipo performance: Evidence of market timing and overvaluation of new issues. Working paper. 32

33 Primary equity markets and growth Top 10 IPOs in Brazil by capital raised from # Issuer name Capital raised (R$ b) Year Issuer business description Independent IPO? 1 Santander BR 13, Carve-out from multinational listed firm NO 2 BB Seguridade 11, Carve-out from listed SOE NO 3 Cielo (Visanet) 8, Carve-out from financial institutions NO 4 OGX Petróleo 6, Family-owned conglomerate ( X Group) NO 5 Bovespa 6, Demutualization of stock exchange NO 6 BM&F 5, Demutualization of stock exchange NO 7 Redecard 4, Carve-out from financial institutions NO 8 BTG 3, Founded by Brazilians, sold and bought back from UBS Unclear 9 HRT Petróleo 2, Independent IPO YES 10 OSX Brasil 2, Family-owned conglomerate ( X Group) NO These offers have collected 42% of all IPO proceeds in Brazil The concentration of Brazil s IPO market on non-independent IPOs has become even more pronounced after 2008 (64% of the capital raised to top 5 IPOs since 2009) Alexandre Di Miceli da Silveira 33

34 Capital raised annually by companies in Brazil (R$ MM) Primary equity markets as an engine for growth The BNDES as a major source of long term finance in Brazil R$ Who finances companies in Brazil? The role of BNDES and Capital Markets 4,5 R$ R$ R$ R$ R$ R$ ,0 1,2 1,8 4,2 2,1 Ratio: BNDES disbursements / Total Capital raised by companies on Capital Markets 0,8 0,5 0,5 1,6 1,8 1,4 2,1 1,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 Ratio: BNDES / Total Capital Raised on Capital Markets R$ BNDES: Annual Disbursements Equity markets: IPO + Follow-On Bond Markets BNDES / Capital Raised on Capital Markets - Alexandre Di Miceli da Silveira Obs.: In 2010, Petrobras raised US$ 70 billion in a share offer. Brazil's government received about US$ $43 bn in shares in exchange for allowing the company to drill for 5 bn barrels in reserves, I have only counted for around US$ 21 bn that have been actually raised with private investors in the capital market. 34

35 Next steps Questions deserving further investigation in Latin America (LA) 1. What is the relevance of economic groups in LA relative to the private sector as a whole? How do they finance themselves and what are their corporate governance practices (including RPTs)? 2. Who are the main institutional investors acting as shareholders in LA? How relevant has been the CG issues to their investment decisions? What has been their role in promoting higher corporate governance standards? 3. What are the main forms of control of LA listed companies (families, shared control, state, foreign, dispersed)? Need for an updated empirical overview 4. How diverse and active have been the boards of directors in LA? How this has changed over time and which countries have taken the lead on this? 5. Are underdeveloped capital markets a barrier to entry for small firms (and a competitive advantage for incumbents)? Alexandre Di Miceli da Silveira 35

36 Primary equity markets as an engine for growth How to transform primary equity markets in a true engine for growth? Supply-side of Equity Benefits of being listed > Costs Demand-side for Equity Confidence that results will be achieved and that they will be fairly distributed Firm-level perspective Investors perspective Alexandre Di Miceli da Silveira 36

37 Stock trade concentration The current market structure in developed markets seems to be leading to an increased market concentration Market concentration: Share in total trading value of top 10 most traded firms: % 55% 66% 69% 60% 62% 65% 47% 43% 49% 21% 25% 15% 12% 8% NYSE Euronext (US) Deutsche Borse Latin America (Average) Alexandre Di Miceli da Silveira Obs.: The Latin America average has been computing based on the market concentration of the following stock exchanges: Buenos Aires SE, Colombia SE, Mexican Exchange, BM&Fbovespa, and Santiago SE. Source: WFE World Federation of Exchanges. 37

38 SESSION 2: SMALL AND MEDIUM-SIZED ENTERPRISES AND THEIR ACCESS TO LATIN AMERICAN EQUITY MARKETS

39 Las Pymes y su acceso a los Mercados de Valores Iberoamericanos Santiago Cuadra Abeti Secretario General Instituto Iberoamericano de Mercados de Valores Reunión de la Mesa Redonda Latinoamericana de Gobierno Corporativo 2013 Quito, Ecuador, 20 de junio de

40 Las Pymes y su acceso a los Mercados de Valores Iberoamericanos INDICE 1. Diagnóstico 2. Alternativas de financiación en el Mercado de Capitales: Diseño de instrumentos; titularización; capital riesgo Mercados y Segmentos específicos 3. Algunas conclusiones 40

41 1. Diagnóstico Las pequeñas y medianas empresas representan más del 98% del total de empresas en Iberoamérica, y son las principales generadoras de empleo en la región Proporción de empresas según su tamaño Fuente: Informe Perspectivas Económicas de América Latina Políticas de pymes para el cambio estructural. OCDE 2012 Suelen tener estructuras familiares: concentración de la propiedad y control 41

42 1.- Diagnóstico La financiación de las PYMES: preferencia al endeudamiento vs instrumentos de renta variable; fuerte dependencia del crédito bancario y reducido papel de mercados de capitales Menos del 15% del total de créditos otorgados en América Latina se dirigen a las pymes.( Son créditos a corto plazo, a tipos de interés elevados, para financiar capital de trabajo. Escaso financiamiento a largo plazo, relevante para expansión e inversión en activos fijos) Tasas de interés de crédito para pymes y grandes empresas Fuente: Informe Perspectivas Económicas de América Latina Políticas de pymes para el cambio estructural. OCDE

43 1.- Diagnóstico 1. Costos de transacción 2. Asimetrías de información Factores limitantes del acceso al crédito bancario (desde Oferta) 1 Altos costos relacionados con la evaluación y seguimiento del crédito PYMES - Selección Adversa: al no poderse evaluar la calidad crediticia, los otorgantes no pueden discriminar a los deudores con más riesgo. - Riesgo Moral: la falta de información del acreedor puede incentivar al deudor a desviar los recursos a otros fines o descuidar su perfil crediticio. 3. Sistema de garantías 4. Protección de los acreedores 5. Factores culturales y regulatorios 6. Factores macroeconómicos La baja capacidad de obtener y ejecutar garantías por parte de las instituciones financieras limita la oferta de crédito para las PYMES. La oferta de crédito se verá limitada cuando el sistema legal no logre facilitar al acreedor la recuperación del crédito. Las decisiones de financiamiento se ven afectadas por factores culturales relacionados con la formalidad de la empresa ( cultura del pago), el marco regulatorio Los niveles de inflación, tipo de cambio y tasas de interés, entre otras variables, pueden hacer menos atractivo el crédito a PYMES con respecto a otros tipos de crédito. 7. Factores históricos Periodos históricos de nacionalización, crisis, rescate y privatización de la banca pueden determinar la disposición de ésta a otorgar crédito a los sectores con más riesgo (PYMES). 8. Propiedad del capital El origen (extranjero vs. nacional) del capital de las instituciones financieras puede determinar su modelo de negocios con respecto a las PYMES. Fuente: Foro sobre el acceso de las PYMES a los Mercados de Valores en Iberoamérica. Cartagena de Indias, del 17 al 19 de septiembre de

44 2.- Alternativas de financiación en el Mercado de Capitales Impulsar el desarrollo de los mercados de capitales como alternativa a la financiación bancaria: Elementos esenciales (estabilidad macro, regulación adecuada, oferta de instrumentos, flexibilización acceso, información, transparencia, buen gobierno y cultura bursátil) Ventajas del acceso a mercados para empresas y accionistas Problemas comunes en la región (volumen, costes, requisitos, estandarización productos, resistencia a compartir información, estructuras complejas) Escaso éxito de mercados específicos para PYMES ( escasa liquidez, colocaciones pequeñas y pocos inversores institucionales-, fiscalidad) 44

45 2. Alternativas de financiación en el Mercado de capitales Diseño de instrumentos específicos para pymes CKDes (México), títulos o valores fiduciarios destinados para el financiamiento de uno o más proyectos, mediante la adquisición de una o varias empresas. En 2012, 10 colocaciones,1.560 mll USD emitidos (desde su creación, 2009, 19 colocaciones, 4,683 mll USD emitidos) Fondos de Inversión en Derechos de Crédito (Brasil); Fondo propyme (Bolivia) Efectos de comercio (Chile) En Argentina: Cheques de Pago Diferido (patrocinados o avalados), desde mayo de 2012 a mayo 2013, 466 mill USD emitidos; Fideicomisos Financieros, 55 mill USD ; Obligaciones negociables pymes, 26 mill USD; 45

46 2. Alternativas de financiación en el Mercado de capitales Titularización y Capital Riesgo para pymes En España: - creación de FOND-ICO Global. primer Fondo de Fondos público de capital riesgo español - Creación de un Mercado Alternativo de Renta Fija (MARFI) En Europa - Titulización : iniciativas para promover el funcionamiento de un mercado de titulizaciones (ABS) respaldados por préstamos a empresas no financieras. - Capital Riesgo: nuevas normas europeas que establecen un "pasaporte" europeo para los fondos de capital riesgo y de emprendimiento social; Fondo europeo de capital riesgo" para pymes que no cotizan (EuVECA) ; Fondo europeo de emprendimiento social (EuSEF)" 46

47 2. Alternativas de financiación en el Mercado de capitales Mercados y Segmentos Específicos Experiencias internacionales 71 empresas 2258 empresas empresas 201 empresas 47

48 2. Alternativas de financiación en el Mercado de capitales 2 empresas listadas Mercados y Segmentos Específicos Experiencias en Iberoamérica MAV (Agosto de 2012) 1 emisora pagares 3 empresas listadas Plataforma Pymes 7 emisoras pagares 22 empresas listadas, en 3 años, 104 mll en nuevo capital Mercado para Empresas Emergentes 14 empresas desde 2002 Panel Pymes 1 emisora de acciones, 18 emisoras de Obligaciones Negociables y Valores de Corto Plazo sin embargo hay países donde no se plantea la creación de un mercado alternativo por considerar que el mercado principal es aun pequeño (riesgo de fragmentación) y se opta por elevar estándares del mercado principal. 48

49 3.- Algunas conclusiones Para que los mercados de valores sean una alternativa de financiación 1. Iniciativas por parte de las Administraciones públicas para estimular participación de pymes en mercados: a) Ayudas y apoyo a las pymes: créditos para financiación de costes iniciales de cotización: gastos para salida al mercado o para estudios previos de viabilidad, apoyo técnico ( México, España, Chile) b) incentivos fiscales para empresas y para inversores directos y para vehículos especializados ( Reino Unido, Francia) c) Regulación y supervisión eficiente : equilibrio entre protección del inversor y carga regulatoria pymes ( condiciones de admisión, obligaciones de información; Gobierno Corporativo; estándares de contabilidad, etc) 49

50 3.- Algunas conclusiones Garantías, avales y subvenciones:...algunos organismos públicos Red apoyo PYME-Mº Economia CONAMYPE; FEDECREDITO AMPYME-PROFIPYME PROMIPYME;CFI FONPYME;CONINPYME IFI, FNG COFIDE, AGROBANCO SEBRAE;FINEP DGPYME; ICO FOGAPE (Banco Estado);CORFO FONAPyME, FOGAPyME, SGR 50

51 3.- Algunas conclusiones Para que los mercados de valores sean una alternativa de financiación 2. Necesidad de contar con infraestructuras e instituciones especializadas: - Proveedores de liquidez y precios ( creadores de mercado) - Intermediarios especializados (gestores de riegos de crédito); - Sociedades de Garantía Recíproca; - Asesores de Inversiones, sponsor, etc 51

52 3.- Algunas conclusiones Para que los mercados de valores sean una alternativa de financiación 3.- Fomentar la estandarización y la transparencia de los instrumentos. Mejorar la gestión de riegos - Facilita la integración de los mercados nacionales - Mejora la capacidad de los agentes de valorar los riesgos y comparar instrumentos - Reduce la necesidad de depender de valoraciones externas - Aporta liquidez a los mercados Iniciativas deben contar con una participación activa de la industria 52

53 4.- Algunas conclusiones Para resultar atractivas a los inversionistas, seria conveniente mejorar las estructuras de gobierno de PYMES (creciente relevancia de inversores institucionales exigencia de una mayor transparencia y rendición de cuentas de gestores) El gobierno corporativo, suele ser un elemento común en los mercados y segmentos específicos para PYMES (obligaciones de gobierno corporativo adaptados a pymes): - Vigilancia del buen gobierno por parte de los sponsors (AIM) - Códigos de conducta aplicables a los miembros del consejo de administración (TSX Venture) 53

54 Conclusión Los Mercados de Valores iberoamericanos puede ser una buena alternativa para la financiación de PYMES si: - se cuenta con una adecuada regulación (flexibilización de requisitos no significa menor protección del inversor) -los poderes públicos se coordinan y aúnan esfuerzos (gran número de programas existentes para las pymes se traducen en la reiteración de experiencias) - se consigue una fuerte implicación del sector financiero privado 54

55 Muchas gracias por su atención 55

56 The Cyprus Crisis: Effects on the financing of SMEs Juan Munguira, CNBV, Spain 56

57 Risk taken by foreign banks in Cyprus at the end of December 2012 in millions of euros The original data in dollars converted in euros 57

58 What are the successful ingredients of a healthy ecosystem? Issuers Investors Investment Banks Stock Exchanges. SMEs Legislators Corporate Governance Regulation 58

59 Bank vs finance markets Market-based (M) vs banking-based (B) corporate financing, M/(M+B) % % Spain Italy Germany France UK USA Recaping things together: Spain has the highest degree of bank-intermediation among the largest Western economies 59

60 The Comparison of banking systems: EU, USA and Japan (figures from 2011) EU USA N 60

61 The nature of banking business Depositors are not experts on risk control and evaluation. Banks provide liquidity to depositors. Banks are essential for the financial system. Banks perform risk control functions 61

62 The nature of banking business The private sector involvement. The principle of Fair Value. The principle of Bail Out. 62

63 Capital and Risk requirements. Solvency requirements. Market risk. Exchange risk. Risk of interest. Risk of merchandise. Risk of equity positions. Treatment options. 63

64 8,4% 10,1% 10,0% 8,4% 9,8% 8,6%, 9,7% 8,9% 9,6% 9,0% 9,3% 9,4%

65 INTEREST RATE FOR COMPANIES %

66 Banking sector assets as a percentage of GDP in December IRELAND CYPRUS FRANCE SPAIN ITALY PORTUGAL GERMANY IRLANDA CHIPRE FRANCIA ESPAÑA ITALIA PORTUGAL ALEMANIA The source. The European Central Bank 66

67 Banking system: passive structure 67

68 Country Ranking by Number of IPOs >= $5 Million China 2. The United States 3. Hong Kong 4. South Korea 5. The United Kingdom 6. Australia 7. India 8. Japan Sorted by Country Ranking Sources: Weild & Co., Grant thornton LLP, Dealogic and The World Factbook Includes domestic and foreign corporate IPOs with a deal value of at least $5 million USD between January. 1, 2008 and Dec. 31, 2012, excluding funds, LPs, SPACs, REITs and other trusts. Gross domestic product (GPD) in U.S. dollars as of 2012 (estimate) 9. Canada Singapore

69 Country Ranking by Number of IPOs Betwen $5 Million and $50 Million Sorted by Country Ranking Sources: Weild & Co., Grant Thornton LLP, Dealogic and The World Factbook Includes domestic and foreign corporate IPOs with a deal value between $5 million and $50 million USD between January. 1, 2008 and December 31, 2012, excluding funds, LPs, SPACs, REITs and other trusts. Gross domestic product (GPD) in U.S. dollars as of 2012 (estimate) 1. South Korea 2. Australia 3. China 4. Hong Kong 5. Japan 6. India 7. The United Kingdom 8. The United States 9. Singapore Poland

70 Country Ranking by Number of IPOs > $50 Million China 2.The United States 3.Hong Kong 4.The United Kingdom 5.India 6.Canada 7.South Korea 8.Indonesia Sorted by Country Ranking Sources: Weild & Co., Grant Thornton LLP, Dealogic and The World Factbook Includes domestic and foreign corporate IPOs with a deal value of at least $50 million USD between January. 1, 2008 and Dec. 31, 2012, excluding funds, LPs, SPACs, REITs and other trusts. Gross domestic product (GPD) in U.S. dollars as of 2012 (estimate) 9.Brazil Saudi Arabia

71 Last Corporate Bonds issued by Spanish Companies Company Date issued Amount (millions of ) Coupon Term (Years to maturity) 13-may , may , abr ,19 10y5 18-abr , abr , mar , mar , feb ,75 Perpetua 31-ene ,5 7,1 25-ene , ene ,87 5

72 Figure 2.1 Number of SMEs, employment in SMEs and value added of SMEs (2005=100)

73 Main alternative Markets Alternative Market Operator Country Creation date Europe AIM London SE Group UK 1995 Entry Standard Deutsche Börse Germany 2005 Alternext NYSE Euronext NASDAQ OMX Belgium, France, The Netherlands Portugal Fisrt North Nordic Nordic Countries Aim Exchange Borsa Italiana Italy 2008 MAB Expansión BME Spain 2008 Rest of the World TSX Venture Exchange Growth TSX Group Canada 1998 Enterprise Market Homg Kong Exchanges Hong Kong 1999

74 AIM Statistics - Country Of Operation and Country Of Incorporation: May 2013 Number of companies as per country of operation Total market capitalisation as at month end m Africa Asia Pacific Australia Canada Central & Eastern Europe Channel Islands China India & Bangladesh Isle Of Man Israel Latin America Middle East Other Offshore Russia & CIS UK USA Western Europe Totals

75 Alternative financing sources. Alternative markets. Alternative Investment Market ( AIM) More flexible regulation AIM rules a) Principles of disclosure. b) General disclosure of price sensitive information. c) Disclosure of corporate transactions. d) Disclosure of miscellaneous information. 75

76 Key reasons small and growing companies choose to join AIM Balanced regulation. International investor base. ( Institutional and Retail investors). Geographical reach and wide sector coverage.( from over 28 countries). Expert adviser network. Visibility and profile. 76

77 Key reasons small and growing companies choose to join AM Banks will have a decreasing share of funding of companies in Europe. More liquid, active and transparent market for funding outside the banking system. Bonds might be a more efficient form of financing for mid- sized companies. Legal regulation. Active trustee functions 77

78 Differences between admission criteria and continuing obligations for AIM and the main market AIM No prior shareholder approval for most transactions. Nominated Advisers required at all times. Admission documents not pre-vetted by the exchange or by the UKLA in most circumstances. MAIN MARKET Prior shareholder approval required for substancial acquisitions and disposals (Premium listing only). Nominated advisers are not required. Pre-vetting of prospectus by the UKLA. 78

79 Differences between admission criteria and continuing obligations for AIM and the main market AIM No minimum market capitalization. No trading record requirement No prescribed level of shares to be in public hands. MAIN MARKET Minimum market capitalization. Normally three-year trading requirement. Minimum 25 per cent shares in public hands. 79

80 Reasons for being listed in an organized market Be listed for Be listed against Financing business growth 4,5*** 2,89*** Business prestige 3,0 2,67 Conversion in stock liquidity 3,5** 2,40** Objective evaluation of the company 3,0 2,30 Overcome credit constraints 2,4 2,60 Diversify the risk of the company 2,2 2,36 Increase investment R+D 2,4 2,31 Professionalize management 3,0 2,56 Solve succession problems 3,0 2,33 Ensure business continuity 3,0 2,92

81 Financing business growth Business prestige Conversion in stock liquidity Objective evaluation of the company Overcome credit constraints Diversify the risk of the company Increase investment R+D Professionalize management Solve succession problems Ensure business continuity 4,5 4 3,5 3 2,5 2 1,5 1 Be listed for Be listed against

82 Reasons for non being listed in an organized market Family Non family Average business business Loss of control 3,53*** 2,87* 3,28 Complex requirements 3,3*** 2,61*** 3,01 High information requirements 3,3** 2,68** 3,04 Loss of confidentiality 3,24** 2,63** 3 Stock Market turbulance 3,41** 2,61** 3,1 Lack of market information 3,32*** 2,58*** 3,02 Resistance change owners 3,76*** 2,93*** 3,42 Resistance change management 3,5** 2,8** 3,23 Insufficient internal control system 2,72* 2,18* 2,5 Lack of internal specialized personnel 3,06*** 2,19*** 2,71

83 83

84 Resources for the funding Soc iedades de garantía recíproca Mutual Guarantee 12 Porcentage Companies En % de empresas Capital Risk Capital riesgo 11, ,0 10,0 9,3 8 8,8 6 7,5 8,3 8,5 7, ,2 3,3 3,8 3,3 3,0 3,5 I trim 2009 II III IV I trim 2010 II III IV I trim ,8

85 CONCLUSIONS Less exposure to the banking channel. Importance of alternative markets. Flexibility and transparency Investor protection. Financial information. 85

86 Small and medium-sized enterprises and their access to Latin American equity markets The Brazilian Case Andre Pitta 86

87 Agenda Brazilian Context International Assessment Working Group Developments New Market Developments Next steps 87

88 Agenda Brazilian Context International Assessment Working Group Developments New Market Developments Next steps 88

89 Recent IPOs were concentrated on Novo Mercado, with relevant foreign participation IPOs by segment until May/13 Capital raising and number of IPOs /follow-ons USD billion Nível 1 5% BDR 5% BOVESPA MAIS 3% IPO: 64 F-on: ,2 74,81 IPO: 11 F-on: 11 Nível 2 14% Novo Mercado 73% IPO: 7 F-on: 8 IPO: 9 F-on: 10 13,9 8,8 5,4 4,5 4,3 8,5 IPO: 26 F-on: 16 30,4 15,4 70,1 55,6 15,1 14,5 IPO: 4 F-on: 8 34,3 7,5 26,8 IPO: 6 F-on: 18 23,7 22,2 11,2 IPO: 11 IPO: 3 IPO: 6 F-on: 11 F-on: 5 F-on: 4 63,2 17,0 18,0 13,1 14,7 7,2 3,9 10,8 9,2 2, may-13 Follow-On IPO Parcel related to the onerous cession of Petrobras offering 45,9 Access to local and foreign investors Size of capital raised Jan/10 until May/13 100% 80% 2% 11% 18% 13% 7% 18% 3% 3% 7% 8% 17% 16% 18% 8% 8% 2% 8% 12% 9,3% 8% 3% 12% 14% 20,11% 7% 9% 20% 20% 15% 23% 6% 60% 23% 42% 40% 20% 70% 62% 73% 72% 66% 72% 70% 69% 64% 58% 29% 0% may/13 Less than U$ 100 MM Between U$ MM Between U$ MM More than U$ 500 MM 89

90 .with an important impact in the PE&VC industry IPO of Companies Invested by Private Equity (BRL million) Secondary issue Primary issue May-2013 TOTAL Total IPO Invested companies

91 Average size of IPOs in Brazil is one of the largest in the world... May-2013 US$ MM 1º BM&FBOVESPA 1.380,5 2º Deutsche Börse 875,9 10º Tokyo SE Group 45,9 7º Bursa Malaysia 66,5 6º NASDAQ OMX 121,9 3º NYSE Euronext (US) 425,4 4º Singapore Exchange 290,2 14º Shanghai SE n/a 5º Hong Kong Exchanges 269,4 11º Australian SE 45,5 13º National Stock Exch. India 14,0 15º Shenzhen SE n/a 8º Indonesia SE 61,7 12º Korea Exchange 17,6 9º TMX Group 48, US$ MM 1º BM&FBOVESPA 691,4 2º Deutsche Börse 501,3 3º Tokyo SE Group 490,3 4º Bursa Malaysia 431,3 5º NASDAQ OMX 318,0 6º NYSE Euronext (US) 287,5 7º Singapore Exchange 278,1 8º Shanghai SE 210,8 9º Hong Kong Exchanges 199,7 10º Australian SE 153,9 11º National Stock Exch. India 99,3 12º Shenzhen SE 85,9 13º Indonesia SE 46,5 14º Korea Exchange 37,4 15º TMX Group 26, US$ MM 1º BM&FBOVESPA 414,4 13º Deutsche Börse 74,4 10º Tokyo SE Group 89,4 6º Bursa Malaysia 174,5 8º NASDAQ OMX 150,1 4º NYSE Euronext (US) 406,4 5º Singapore Exchange 346,8 2º Shanghai SE 413,7 3º Hong Kong Exchanges 412,4 7º Australian SE 151,5 12º National Stock Exch. India 77,0 9º Shenzhen SE 115,0 11º Indonesia SE 88,7 14º Korea Exchange 53,1 15º TMX Group n/a Source: WFE (2011; 2012; may/2013) 91

92 resulting in a very restricted number of listed companies Number of listed companies May BSE India TMX Group BME Spanish Exchanges London SE Group NASDAQ OMX NYSE Euronext (US) Japan Exchange Group - Tokyo Australian SE Korea Exchange National Stock Exchange India Hong Kong Exchanges Shenzhen SE Japan Exchange Group - Osaka NYSE Euronext (Europe) Shanghai SE Ranking WFE 25º position BM&FBOVESPA 456 Source: World Federation of Exchange (WFE). ¹ Membros do Comitê de Mercados Emergentes da IOSCO. 92

93 Traditional funding for investments will not meet the economy needs for next years... BNDES forecast for the level of investments (R$ Billion) Source of funding for investments Forecast ,7% 10% 4,8% 2% 14,5% 10% 19,5% 25,2% 15% 5% 17% 21,2% 7% 3,1% 4,2% 3,7% 7% 15,6% 8,9% 9% 6,1% 27,8% 30,6% 52,5% 9,6% 10% 15,1% 27,6% Source : BNDES nov/11 Capital raised in the stock market (R$ Billion) ,7% Média 2001/10 58,5% 41,8% 49,2% 44,7% 30,7% 37,6% p Lucros Own Profits Retidos BNDES Captações External Sources Externas Ações Equity Debêntures Debt Source: BNDES. Source: BM&FBOVESPA 93

94 ...while SME access to capital market is limited IPOs from 2004 to May Market cap at IPO Number of Companies listed at Novo Mercado, BOVESPA MAIS and Level 2 Bellow R$ 700 MM 12 Between R$ 700 MM and R$ 1 BI 20 Between R$ 1 BI and R$ 5 BI 84 Over R$ 5 Bi 15 Total 131 Source: BM&FBOVESPA / Prospectuses 94

95 New opportunities going ahead Growth Opportunities Investors portfolio allocation Public and Private Sector joint initiative Sustainable growth ahead Companies looking for funding to invest in new opportunities Traditional funding sources are not sufficient Low interest rates are driving investors to riskier asset classes Fostering the development of SMEs access to the capital markets Creation of a Techinical Committee to elaborate proposals by first half of

96 Agenda Brazilian Context International Assessment Working Group Developments New Market Developments Next steps 96

97 Working Group to develop Access Market Working Group Details Objective: Propose Action Plan to develop a market environment favorable for IPOs below USD 300 MM, in particular, in the range of USD 20 MM and 100 MM Participants: ABDI (Industrial Development Agency), BNDES (Brazilian Development Bank), BM&FBOVESPA, CVM (Securities and Exchange Commission), FINEP (Innovation Agency) International Assessment: from May 26th to June 7th, visiting UK, Poland, Spain, Australia, Canada, China and South Korea. Total of 65 meetings with exchanges, regulators, brokers, investment banks, investors, issuers, lawyers, auditors and advisors ENGLISH: ad/diagnostico-ingles.pdf SPANISH: ad/diagnostico-espanhol.pdf Presentation of the Report with the Main Findings: November 5th Creation of a Technical Committee and definition of an Action Plan by early

98 International Assessment - Report s Main Conclusions Demand from local investors Institutional and Retail Market niche for specialized brokers and investment banks Different types of tax incentives for investors had an importance Regulatory discounts are more important for very small companies (USD 2 MM capital raising in average) Fixed costs involved in the IPO were not identified as a barrier, and in fact, those costs are lower in Brazil 98

99 Agenda Brazilian Context International Assessment Working Group Developments New Market Developments Next steps 99

100 Discussions groups Working Group Technical Committee Tax Incentives Vehicle Listing and Offer Costs Offer Process Education Alternative Market Entrepreneur Education 100

101 Agenda Brazilian Context International Assessment Working Group Developments New Market Developments Next steps 101

102 New listings since beginning of activities of the Working Group Nutriplant Desenvix feb/13/08 oct/03/11 Senior Solution Nortec may/10/12 may/28/13 Next listings: BIOMM and CAB AMBIENTAL 102

103 Capital raising by a SME in 2013 Senior Solution Case Senior Solution is an IT company that provides products and services to financial institutions. R$ Million Listing: 10/may/12 Offering size: listing without an offering Free float: 0% Net Income EBITDA EBITDA Margin 15% 20% Net Profit Source: Financial Statements of Senior Solution Main innovative features of the offering IPO: 03/mar/13 Stock Pricing: R$ 11,50 Offering size: R$ 62,2 MM Cost: R$ 2,8 MM (4,5%) Market Value at IPO: R$ 134 MM Distribution exclusively in Brazil, with institutional and retail investors No prospectus printing A single deal counsel 103

104 Agenda Brazilian Context International Assessment Working Group Developments New Market Developments Next steps 104

105 Next Steps Market announcement of the proposals Implementation of main proposals BM&FBOVESPA to implement some changes in its Access Market Supporting other market initiatives and listing new companies 105

106 São Paulo Praça Antonio Prado, 48 Rua XV de Novembro, 275 Centro - São Paulo (SP) Fone: United States 61 Broadway, 26th Floor, Suite 2605 New York, NY USA Phone: Fax: China 200 Yincheng (M) Rd, Suite 404 Pudong New Area Shanghai China Phone: Fax: United Kingdom 88 Wood St., 12th floor EC2V 7RS Londres Phone:

107 SESSION 3: STATE OWNERSHIP IN LATIN AMERICAN CAPITAL MARKETS: CORPORATE GOVERNANCE CHALLENGES AND IMPACTS

108 GOBIERNO CORPORATIVO ISA COMO EMPRESA ESTATAL Mesa Redonda Latinoamericana de Gobierno Corporativo Ecuador, Junio de 2013 Alberto Mauricio Bernal Todos los derechos reservados por Interconexión Eléctrica S.A. E.S.P.

109 Todos los derechos reservados por Interconexión Eléctrica S.A. E.S.P. 109

110 QUIENES SOMOS ISA se crea en el año 1967, para interconectar sistemas regionales, con capital 100% publico. En 1995, los accionistas aprueban la transformación jurídica de ISA en Empresa de Servicios Públicos y autorizan la vinculación de capital privado. Se expide la Declaración de la Nación en el año 2000 (Protección accionista minoritario: Información, liquidez acción, dividendos, miembro junta, estatutos) En el año 2000, ISA democratiza sus acciones, realiza con éxito el programa de ISA, Acciones para Todos, que involucra a más de 60 mil colombianos como dueños de la compañía. Se expiden en el año 2001 el Código de Buen Gobierno, en 2010 el Código de Ética (reforma) y en 2012 el Código Antifraude de ISA. Desde 2001 organizada como Grupo Empresarial, hoy con 36 filiales en 8 países de Latinoamérica. Hoy ISA es una Empresa de Servicios Públicos Mixta, Entidad Estatal, con capital mixto compuesto así: % de participación del Estado, 7.001% participación Mixta y 31.44% de participación Privada con cerca de accionistas privados (free float). 110

111 Prácticas de Buen Gobierno al Interior de la Empresa Trato equitativo en cuanto a solicitud de información y reclamaciones; Centro de atención al Accionista; Solicitar auditorias Especializadas. Cuadro de Gestión Integral, Planes de Desarrollo, Presupuesto, Información requerida por Órganos de Control internos y Externos. Códigos de Buen Gobierno, Ética y Antifraude Auditoría al Cumplimiento del Código, Informe a la Asamblea sobre su cumplimiento. Mecanismo de verificación Estatuto de Contratación. SIPLA. Principios de la Función Administrativa. Inhabilidades e incompatibilidades. ACCIONISTAS Conducta Admón. Mecanismo Verificación del CBG Accionistas Relación Asamblea ASAMBLEA PRÁCTICAS PRÁCTICAS DE BUEN GOBIERNO DE BUEN GOBIERNO Proveedores Revelación REVELACIÓN INFORMACIÓN Información Junta Directiva JUNTA DIRECTIVA Resolución Grupo de Interés Conflictos RESOLUCIÓN DE CONFLICTOS Regla General información publica, salvo reservada, confidencial o que afecte a terceros. No procede Derecho de Petición pero existen tiempos de respuesta. Publicación Web: Convocatoria, Orden del día, Proposiciones, Informes, Planchas para JD, Hojas de vida de postulados a JD, Segundo aviso, Transmisión vía Internet. Negociación de valores NEGOCIACIÓN DE VAORES 4 renglones independientes, Criterios de selección, 3 Comités, Reglamento de Funcionamiento, Deberes específicos, 3 sistemas de Evaluación. Administradores autorizada por la Junta Directiva por motivos ajenos a especulación y cuando no se posea información sustancial. Publicar en la Web el cumplimiento de los compromisos con los Grupos de Interés. Eventos de interacción. Comportamiento ante Conflictos de Interés: Abstenerse de Actuar e informar al Superior. Solución Controversias: Arreglo Directo o la parte que lo plantea decide si acude a los jueces o a una forma alternativa de solucionar el conflicto.

112 GOBIERNO CORPORATIVO EN ISA Por prácticas de buen gobierno ISA entiende los compromisos y medidas adoptados por la empresa en relación con su gobierno, conducta e información. Esto con el fin de que las actuaciones de los administradores y los trabajadores se orienten a garantizar la integridad ética empresarial, el adecuado manejo de sus asuntos, el respeto por los que invierten en ella, el cumplimiento de los compromisos con los grupos de interés y el conocimiento público de su gestión. El Gobierno como accionista mayoritario ha incentivado la adopción de prácticas de Buen Gobierno Corporativo y el crecimiento de los negocios de la empresa. Más relevante que la existencia de normas, es la observancia de las prácticas (Interiorizar - Cultura Empresarial) puesto que son los comportamientos de la empresa los que permiten generar confianza, razón de ser del buen gobierno corporativo. ISA ha sido galardonada en el año 2011, en el premio de Buen Gobierno Corporativo de ANDESCO. ISA desde el año 2007 hace parte del Latinamerican Companies Circle y desde el año 2011 del Circulo Colombiano de Empresas. Transparencia por Colombia E.S.P con 92 sobre 100 puntos.

113

114 114 Empresas de propiedad estatal dentro de los mercados de capital de América latina: desafíos e impactos del gobierno corporativo Estructura de la propiedad de las empresas estatales en el Ecuador Junio, 2013 Jessica Andrade

115 115 Rol de las empresas públicas Instrumentos de cooperación para alcanzar los objetivos de la planificación nacional. 1)Responden a políticas públicas y una institucionalidad programática. Desarrollar industrias estratégicas (petroquímica, metalurgia). Liderar la reconversión productiva hacia la sociedad del conocimiento (telecomunicaciones, ciencia y tecnología). 2)Persiguen fines empresariales (alternativa de financiamiento fiscal ) Maximizar la producción y competir en los mercados Generar renta extractiva (petróleo y minería).

116 Panorama de las empresas de propiedad mixta 116 En la actualidad contamos con 27 empresas de las cuales 24 son de propiedad única del Estado y 3 son empresas de economía mixta con mayoría accionaria del Estado. Sector hidrocarburífero 51% EP PETROECUADOR y 49% PDVSA 70% PETROAMAZONAS EP y 30% PDVSA Sector minería 51% ENAMI EP y 49 % MINERVENSA

117 117 Oportunidades de crecimiento a partir de marcos asociativos El Estado mira como una ventana de oportunidades, el crear vínculos asociativos en áreas estratégicas. Marco legal (varias formas de asociación) Consorcios Empresas mixtas (empresas privadas o públicas, nacionales o extranjeras) Creación de naturaleza jurídica Alianzas estratégicas Firma de convenios y acuerdos

118 Perspectivas del Estado como dueño y/o accionista Expectativas del Estado Compartir riesgo de operación y de capital. Acceso y transferencia de tecnologías y de conocimientos. Mejoramiento y optimización de los márgenes de rentabilidad. 118 Retos de Estado Divulgación, transparencia, acceso a la información. Delimitación clara de los fines de política pública y de los objetivos empresariales. Institucionalización de roles claros entre el propietario, el regulador y el inversor. Propiciar la eficiencia, racionalidad, rentabilidad y control social.

119 SESSION 4: BREAK-OUT GROUP DISCUSSIONS:

120 Corporate Governance Stock Exchange Indices Around The World Objectives Types Critical Elements Performance Lessons A World Bank and International Finance Corporation Study Andreas Grimminger, PGS Advisors International Pasquale di Benedetta, World Bank 2013 Latin American Corporate Governance Roundtable Quito, 20 th of June 2013

121 Background The global financial crisis has become a catalyst for reexamining the effectiveness of existing capital market incentives and financial regulatory structures and a number of countries are placing increasing emphasis in making corporate governance reforms a high priority. As a result, requests for guidance on how to adequately build incentive structures that promote good governance and foster its implementation in corporate practices have become more common.

122 Rationale for the Study 1. Investor Guidance and Expectations: CGIs can provide a strong signal to investors on how companies are run. Yet the pre-defined set of corporate governance and/or corporate social responsibility requirements may or may not always follow globally recognized standards and investor expectations can fall short. 2. Integrity of the adopted methodology: Indices could contribute to addressing the recurrent issue of how to measure CG implementation. It is therefore of paramount importance that what is being measured is funded on objective considerations based on a conflict-free approach. 3. Attracting Companies to the Index: Based on the notion that better governance practices improve company performance, the resulting rankings or tiers that CGIs generate can pave the way to economic and financial performance returns for companies that have made governance a corporate priority. Connecting the corporate governance dots to these pay-offs may not always be a straight line.

123 Corporate Governance Indices studied Country Stock Exchange Index Name Brazil BM&FBOVESPA Corporate Governance Stock Index China Shanghai Stock Exchange (SSE) Corporate Governance Index Italy Borsa Italiana FTSE Italia STAR Mexico Mexican Stock Exchange (BMV) Indice IPC Sustenable Peru Lima Stock Exchange (BVL) Good Corporate Governance Index Turkey Istanbul Stock Exchange (ISE) Corporate Governance Index South Africa Johannesburg Stock Exchange (JSE) Socially Responsible Investment (SRI) Index South Korea Korea Stock Exchange (KRX) Korean Corporate Governance Index (KOGI)

124 Objectives of CGIs Three main objectives to launch a corporate governance index can be identified : 1. Raise the governance ceiling Effective policy tool where law and regulation are slow to improve Index criteria can directly address perceived weaknesses 2. Give companies opportunity to differentiate themselves Important for companies especially in markets with CG weaknesses Companies can effectively showcase their commitment 3. Tap into growing pool of funds chasing good CG and ESG practices Survey after survey shows that ESG factors are becoming mainstream CG is the most watched of these factors

125 Types of CGIs CGIs can be categorized in a number of ways: 1. Degree of commitment of index member companies Listing tiers (Novo Mercado, STAR) have mandatory special listing rules and require higher degree of commitment. 2. Automatic vs voluntary evaluation Automatic evaluation gives more credibility to indices since companies cannot choose to have their practices analyzed. 3. Membership capped Limiting the maximum number of companies may suggest to investors that it is more difficult to be part of the index. 4. CG vs. ESG criteria Depends to large degree on principal purpose of index

126 Critical Elements of CGIs Four areas are most critical in the analysis of a CGI or ESG Index: 1. Index Criteria Governance Criteria Market-based criteria 2. Process of company evaluation Type of information Governance evaluators Methodology Vetting of information 3. Disclosure Disclosure of index methodology Disclosure of ratings 4. Supervision of indices Monitoring and review of compliance with index criteria Exclusions from indices

127 Performance of CGIs - Growth 1. Growth in Indices Most indices have grown very strongly since inception Index Launch Date Original February Constituents 2013 Brazil BM&FBOVESPA CG Index China SSE CG Index Italy FTSE STAR Mexico BMV IPC Sustentable Peru BVL Good CG Index South Africa JSE SRI Index South Korea KRX KOGI Index Turkey ISE CG Index

128 Performance of CGIs Market Benchmarks 2. Performance since inception against market benchmark CGI/ESG Index Market Benchmark 100= Year CGI Jan 2013 Benchmark Jan 2013 Differential Annualized Differential Brazil IGC IBOVESPA % 29% China SSE CGI SSE * 46.5* +1.3% 0.33% Italy FTSE STAR FTSE MidCap % 4.7% Mexico IPC Sust IPC 2008** % 13.3% Peru IBGC IGBVL * 141.1* +16.3% 4.1% S. Africa JSE SRI JSE All Share % -4% S. Korea KOGI KOSPI * 302* -45% -5% Turkey ISE CGI IMKB % -2.7% * Closing values as of May 2012 ** The Mexican Index, launched in November 2011, was backdated to 2008 to allow for a longer comparison period.

129 Performance of CGIs Market Benchmarks & ETFs 2. Performance since inception against market benchmark Brazil and Mexico have substantially outperformed the market, Brazil benefitting from progressive weighting applied to Novo Mercado companies Most indices track the market closely: significant overlap between large cap main index companies and companies in the CG index. Lack of depth in capital markets 3. Development of Investment Products So far, only two exchange-traded funds have been developed from the indices, in Brazil and China. Mexico is in development. Reasons include lack of differentiation in some cases, lack of market depth and relative novelty of index in others.

130 Key Findings of the Study 1. Corporate governance indices can be an effective market solution in addressing legal and regulatory gaps, and in enhancing corporate behavior and company s visibility. 2. Evidence suggests that indices based on binding listing rules allow greater access to capital than those based on corporate governance codes or other scoring mechanisms. 3. Investors recognize the importance of corporate governance in their investment decisions, and the difficulty in gathering related information especially in emerging markets. If set up correctly, CG Indices can bridge the information gap. 4. Given the qualitative nature of CGIs, investors need to be careful to properly understand the building blocks and methodology an index is based on as information and expectation asymmetry may pose unforeseen risks. 5. In most CGIs, key challenges for investors remain: access to index information and rating methodology is limited, and company evaluations are rarely made public. 6. Virtually all CGIs have had strong constituent growth. However, most are struggling to beat the benchmark index. This often reflects the overlap of constituent companies and a lack of depth in the capital markets.

131 Lessons Eight Steps to build a successful CGI 1. Use a wide initial consultation process 2. Define the objective(s) of the index 3. Select the index approach 4. Differentiate criteria from standard governance practices 5. Build a transparent and credible evaluation process 6. Achieve maximum possible disclosure 7. Effectively monitor index criteria 8. Develop the index

132 PROGCARNE ARANGO SOFTWARE June 20, 2013 CECONSA EQUILAB Latin American Corporate Governance Roundtable CAMINOS PUBLIMAGEN INALMA Erick Lagos EMPACASA TECNO REX HOLDING DESINID TECNOSOL UNIVERSAL

133 Track record of LIM Lafise Investment Management (LIM) is a joint venture between LAFISE Group (80%) and NORFUND (20%). It is the only Fund Manager in Central America with more than 12 years of experience investing in the SME sector. Two Private Equity Funds under administration, CASEIF I (US$ million) incorporated in 2000 and CASEIF II (US$ 29 million) in 2007, for a total amount of US$ million. Investors of CASEIF I: MIF, NORFUND, NDF and LAFISE. Investors of CASEIF II: MIF, NORFUND, LAFISE, SIFEM, BIO, FINNFUND, CAF. Due to success of CASEIF I and CASEIF II, LIM is involved in the fundraising of CASEIF III including Central America and Colombia as geographic focus for a total target Capital of US$ 50 million. 1

134 General information of CASEIF I and CASEIF II CASEIF I: 10 investments done in 4 countries, average investment size US$ 0.85 million, and 8 exits executed. The Fund is on the deinvestment process of 1company and 1 investment property received in lieu of payment. It is expected to close with break even position or with a positive return in accordance to sale of the above assets. CASEIF II: 15 investments done in 6 countries, average investment size US$ 1.85 million 2 exits executed (gross IRR 16% and 22%) and 1 in process (estimated gross IRR 30%). Focus on the SME - companies with fewer than 300 employees and less than US$ 10 million in sales/assets, thereby having a stronger developmental impact with more poverty reduction. Sectors: Agro-industrial, food processing, logistic, advertising, fishing, telecom, renewable energy, software, plastic medical devices, education, health, etc. Preferred Investment instrument: Convertible debt, mezzanine and Equity. 2

135 Impact of CASEIF Funds from a point of view of Environmental, Social and Corporate Governance (ESG) Corporate Governance In10 Investee companies were elaborated Protocols of Family Business and/or Protocols of Corporate Governance. In process there are 2 more companies. It was guided by an external consultant firm. 10 Investee companies received training for the use of GRC Director Suite, a web software for the management of Board Meetings. 28 sponsors received a training during two days at INCAE Business School related to Family Business and Corporate Governance. 6 Investee companies obtained by first time audited financial statements issued by KPMG, Deloitte, PKF, etc. 8 Investee companies migrated to IFRS. In 4 companies were implemented SAP Business One software and 2 in process of obtaining. 3

136 Impact of CASEIF Funds from a point of view of Environmental, Social and Corporate Governance (ESG) Environmental Quality certifications obtained: ISO 13,485: 1 company ISO 9001: 4 ; CMMI 2: 1; HACCP: 2; ISO 22,000: 2. In process of obtaining: ISO 9001: 2; ISO 22,000: 2 Investee companies are displacing more than 40,000 tons of carbon dioxide (CO2) emissions per year. Social 1,479 direct and 8,066 indirect jobs. Creation of new employees after the entry of CASEIF II: 387 direct jobs and 3,162 indirect jobs 50% of portfolio companies employees are years old 38% of portfolio companies employees are women Exports generated by Portfolio in 2012: US$ 33,383,866 Tax revenues paid by the Portfolio companies in 2012: US$ 7,943,110 4

137 What are some of the ESG obstacles faced by SMEs in order to adopt best practices of corporate governance? SME in Latin America ESG obstacles Low level of corporate governance where almost all decisions, strategies and risk analysis are evaluated and taken only by the criteria of the main shareholder or by the head of family. Lack of good accounting systems, audited financial statements under international accounting standards, and controls along with improved disclosure. The majority of SMEs lack adequate organisation SMEs are limited and do in not their work competitiveness. with welldefined international administrative certifications, processes. such as ISO or They usually cannot attain HACCP. SME are limited to access long term financial resources. Low attention to succession plans and to develop management teams. 5

138 What corporate governance issues and instruments should be promoted by a PE Fund as a priority to encourage the adoption of best corporate governance practices by SMEs? The SME s level of corporate governance (CG) should reflect the nature and size of the company, and the company s risks. The investment instrument (equity, convertible loan or mezzanine) has to be aligned to each company for establishing an optimal CG structure. The findings of the due diligence related to Corporate Governance areas are important to define the issues to be addressed as a priority to improve. For this, it is required to have a Corporate Governance Questionnaire which it should include five areas of governance as follow: Commitment to CG Sucession planning Control Environment and Processes Structure and functioning of the BoD Transparency and 6

139 Model of CASEIF s Funds for SME in Emerging markets External consultant (ad hoc) for the elaboration of Protocol of Family and policies. To develop management teams and to provide trainings to them. To encourage the importance of CG through the attendance of seminars. External consultant (ad hoc) for the elaboration of Corporate Governance and policies. Workshop with sponsors and key managers for evaluating strategies and risks. Incorporation of LIM s controllers for supervision and certification of financial statements. Coaching for the elaboration of policy related to internal controls. Budget and KPI monitoring. Opinion of external auditors regarding to Internal controls. Through the support of LIM s consultant, the adoption of Enviromental, Occupational, Health and Safety, and Quality (EOHSQ) systems. Transparency and disclosure Incorporation of external auditors. Migration to IFRS. Adoption of accounting information systems such as SAP, Exactus, Net Suite, etc. Participation as advisor in management Committees. Composition of the BoD, or Advisory Board. LIM s representative participates actively in the BoD. Implementation of GRC Director Suite for the management of BoD meetings. Board Committees. Independent directors. 7

140 Financiamiento para PYMES: implicaciones de gobierno corporativo José Alberto Garzón Gaitán Reunión de la Mesa Redonda Latinoamericana de Gobierno Corporativo 2013 Quito, de junio, 2013

141 AGENDA 1. BANCÓLDEX 2. El gobierno corporativo en el análisis de crédito 3. El gobierno corporativo según las Pymes 4. La promoción del gobierno corporativo en las Pymes 5. Aspectos que se deben trabajar en el gobierno corporativo de las Pymes 6. El gobierno corporativo es un traje hecho a la medida

142 Banco de desarrollo empresarial del Gobierno colombiano Relación de Bancóldex con sus aliados 89.17% 86.55% 49.63% 30.21% Sociedad anónima de economía mixta Vinculado al MCIT* Establecimiento de crédito bancario Intermediario del mercado cambiario Emisor e intermediario de valores Régimen de derecho privado para contratación y régimen laboral Accionistas A diciembre 2012 Ministerio de Hacienda y Cédito Público 7,9% Otros 0,2% Financiamiento para pymes: implicaciones de gobierno corporativo Ministerio de Comerio, Industria y Turismo 91,9%

143 A MEJORAR EN Hacia dónde queremos llegar? A consolidar un modelo de Banca de Desarrollo Integral QUE APOYEN: Productividad y competitividad Contribuir al desarrollo y el crecimiento económico sostenible y a la modernización del aparato productivo A TRAVÉS DE: Instrumentos de Banco de Desarrollo financieros y no financieros Al empresario en cada etapa de madurez de su empresa Internacionalización Con un objetivo último de generar empleo innovación y emprendimiento Financiamiento para pymes: implicaciones de gobierno corporativo

144 Misión- Visión Misión Como banco de desarrollo, impulsamos la productividad del sector empresarial colombiano a través de la innovación, modernización e internacionalización; con sostenibilidad financiera y compromiso de nuestro capital humano, en un marco de responsabilidad social. Visión En el 2014, ser el Banco líder en la implementación de instrumentos de desarrollo empresarial para promover la productividad de las empresas colombianas. Financiamiento para pymes: implicaciones de gobierno corporativo

145 Tipo de Financiamiento (fuentes) Programas y servicios de Bancóldex Modernización empresarial Capital de trabajo Desarrollo Sostenible-verde Operación Bancaria Internacional Descuento de documentos Crédito para Pymes y Grandes empresas Crédito para Micro Formación empresarial Microseguros Crédito proveedor, comprador y corresponsal Compra de facturas- Liquidex Comercio exterior MERCADO PÚBLICO (BOLSA DE VALORES) CAPITAL PRIVADO MADUREZ CAPITAL EMPRENDEDOR CONSOLIDACIÓN INVERSIONISTA ANGEL CAPITAL SEMILLA START UP O INICIO EXPANSIÓN PLAN DE NEGOCIOS Etapa de desarrollo de la empresa Financiamiento para pymes: implicaciones de gobierno corporativo

146 Cómo ven los bancos a las Pymes? Las características inherentes a las Pyme representan algunos de los principales obstáculos para otorgar préstamos. [ ] algunas de las características intrínsecas de las Pyme (heterogeneidad en sus actividades, informalidad, falta de disponibilidad y confiabilidad de los estados financieros, baja capacidad gerencial de los propietarios y su naturaleza familiar) complican su evaluación de riesgo crediticio y aumentan los costos de transacción. Además, Bancóldex podría tomar la iniciativa de apoyar programas para la capacitación en habilidades gerenciales y promover el desarrollo de nuevos instrumentos de financiamiento a las Pyme, tales como factoring y capital de riesgo, a través del análisis de limitaciones existentes y de la recomendación de políticas adecuadas para superarlas Banco Mundial, Unidad de Gestión para México y Colombia Oficina Regional para Latinoamérica y el Caribe Colombia Financiamiento bancario para las pequeñas y medianas empresas (Pyme) Informe N CO Enero de 2008 Financiamiento para pymes: implicaciones de gobierno corporativo

147 Cómo ven las Pymes a los bancos? La proporción de Pymes industriales que solicitó crédito al sistema financiero durante el primer semestre de 2012 presentó un leve incremento con respecto al año anterior, al pasar del 46% al 48%, igualando su promedio histórico. La principal área de acción de los tres macrosectores en el segundo semestre de 2012 fue la capacitación al personal, actividad que fue adoptada por más del 50% de las Pymes. Entre tanto, la adopción de políticas o prácticas de responsabilidad social cobró gran importancia. Asociación Nacional de Instituciones Financieras ANIF, BID, Banco de la República, Bancóldex La Gran Encuesta PYME Segundo semestre de 2012 Financiamiento para pymes: implicaciones de gobierno corporativo

148 Qué rol puede promover el gobierno corporativo en las Pymes? ACCIONES INTERNAS: ACCIONES EXTERNAS: Prácticas de gobierno corporativo (tratamiento equitativo de accionistas minoritarios, revelación de información transparente, autoevaluación de la gestión de la Junta Directiva) Programa de Formación Empresarial - Taller Prácticas de buen gobierno para pymes familiares Rendición de cuentas permanente a la ciudadanía Taller Porque ser un buen empresario es un excelente negocio! Gestión Ambiental y Responsabilidad Social Empresarial Transparencia - Índice de Transparencia Nacional, Corporación Transparencia por Colombia Programa de mejores prácticas de gobierno corporativo con entidades microfinancieras Meritocracia Valores organizacionales - Código de Comportamiento Institucional Financiamiento para pymes: implicaciones de gobierno corporativo

149 Qué aspectos se deben trabajar en el gobierno corporativo? Metodología de la Corporación Financiera Internacional IFC: Compromiso con el gobierno corporativo Desde formalidades básicas hasta mejores prácticas en gobierno corporativo Estructura y funcionamiento de la junta directiva Desde la junta directiva básica hasta la composición de comités especializados Ambiente de control y procesos Desde sistemas de control interno adecuados hasta la adopción de estándares internacionales Transparencia y revelación de información Desde los informes tradicionales hasta la adopción de mejores estándares internacionales Derechos de accionistas Desde la información a los accionistas y a las asambleas de accionistas hasta la adopción de mejores prácticas Financiamiento para pymes: implicaciones de gobierno corporativo

150 El gobierno corporativo es un traje a la medida El Gobierno Corporativo es una decisión propia No sólo apoya la gestión interna sino la sostenibilidad del negocio Hoy en día se tiene en cuenta sin saberlo Añade valor a las empresas Será una oportunidad? Financiamiento para pymes: implicaciones de gobierno corporativo

151 GRACIAS

152 SESSION 5: RELATED PARTY TRANSACTIONS TASK FORCE RECOMMENDATIONS: COUNTRY PROGRESS AND EMERGING GOOD PRACTICES

153 LATIN AMERICAN CORPORATE GOVERNANCE ROUNDTABLE Session 5: Related Party Transactions Task Force Recommendations: Country Progress and Emerging Good Practices June 21, 2013 Quito, Ecuador Mike Lubrano / Daniel Blume Reporters daniel.blume@oecd.org mlubrano@carticacapital.com

154 Background Dec Legal / Regulatory and Institutional Framework for Enforcement Issues in Latin America Abuse of Privileged Information and Insider Trading Oversight of Related Party Transactions Nov Survey Report on Related Party Transactions presented at Lima meeting of Roundtable Jan. March 2012 Country-Level Task Forces formed April May 2012 Questionnaire responses from Countrylevel Task Forces; Conference calls conducted June 28, 2012 Draft Report, including country-specific recommendations discussed by Task Force in Rio

155 Background July Sept Recommendations Report revised to incorporate comments received at Rio meeting 4 th Quarter 2012 Recommendations Report presented to Companies Circle and OECD Corporate Governance Committee; published and posted on OECD website April 2013 Questionnaire distributed to Companies Circle members June 2013 Responses compiled; draft discussion paper sent to Task Force Members Jun 19, 2013 Task Force meets in Quito to report progress, discuss questionnaire responses and draft discussion paper

156 Components of a Sound RPT Framework 1. Requirements for immediate and adequate disclosure of RPTs that meet reasonable materiality standards. 2. Board responsibility. 3. Shareholder approval of exceptional RPTs. 4. Quality and independence of auditors and valuation experts. 5. Effective enforcement and ability to seek compensation for damages.

157 Priorities for Continuing Effort 1. Collecting, sharing and analysis of data on RPTs 2. Completeness and consistency of disclosure (IAS presentation) 3. Materiality thresholds 4. RPTs in economic groups 5. Company-specific policies 6. Taxonomy of state ownership 7. Beyond the region

158 Observations from Survey The reasons reported for conducting related party transactions were those generally cited in the Task Force s earlier work on the topic. Only one respondent reported that its policy is to avoid RPTs. The remainder regard engaging in RPTs as a relatively common and potentially beneficial for the company and its shareholders. One respondent noted that it accorded a preference to companies within the group.

159 Observations from Survey (2) All the respondents stated that their general standard was that RPTs should be conducted on market terms. Disclosure of RPT policies and IAS 24 disclosure in financial statements was virtually universal. However, no respondent reported that it makes some form of continuous disclosure of RPTs. All respondents lodged responsibility for reviewing the fairness of RPTs with the Board (sometimes assisted by a Board committee).

160 Observations from Survey (3) Only exceptional RPTs (e.g., mergers and acquisitions) were reported as ever having been submitted to shareholder review. Most respondents to the questionnaire were members of an identified company group. In general, the group had a single over-arching RPT policy, but in some cases such policies were adapted to the special requirements of a particular group member.

161 Observations from Survey (4) One respondent noted that on occasion RPTs within the group on unequal terms. In such cases, some form of compensation was accorded minority shareholders of the disadvantaged company. One respondent reported a system for review of transactions with members of its controlling shareholders that was specifically tailored to its ownership structure and the industry in which it and its controllers belonged.

162 Discussion Paper Are the questions we have been raising for possible legal and regulatory requirements and best practices for different types of companies the right ones? Are there additional recommendations or distinctions that should be considered? Is there consensus within the Task Force to issue these as recommendations?

163 Discussion Paper (2) Should the issues raised concerning RPTs for state-owned companies be brought to the Latin American SOE Network for further discussion and development? Should the Latin American Companies Circle be invited to further consider these issues in the context of its Working Group on Company Groups?

164 Questions for Speakers What progress has been made against the country-specific recommendations of the Report? What should be next steps on RPTs For efforts in your country? For the Task Force / RT?

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173 SESSION 6: REPORTS OF BREAKOUT GROUPS No presentations

174 SESSION 7: INSTITUTIONAL INVESTORS AND CORPORATE GOVERNANCE: COUNTRY RESPONSES TO ROUNDTABLE RECOMMENDATIONS

175 OECD MESA REDONDA LATINOAMERICANA DE GOBIERNO CORPORATIVO 2013 LUIS VALDIVIESO MONTANO PRESIDENTE DE LA AAFP Junio 2013

176 I. Logros en la Recomendación N 3: Distinguiendo las empresas con mejor gobierno corporativo para propósitos de inversión Los Fondos de inversiones consideraron recomendar a las compañías en las que invierten guías o pautas de gobierno corporativo a ser asumidas por estas para generar un incentivo positivo en que las medidas de buenas prácticas de gobierno corporativo las convierten en objetivos de inversión viables.

177 I. Logros en la Recomendación N 3: Distinguiendo las empresas con mejor gobierno corporativo para propósitos de inversión Empresas invertidas de preferencia en el índice IBGC de la BVL AFP han elaborado Guías y Pautas referente a las Empresas Invertidas : Guía Referente al Directorio Elección y Rotación del Directorio. Composición del Directorio. Remuneraciones del Directorio. Restricciones al momento de elegir Directores. Organización del Directorio. Creación de Comités y Participación de Directores Independientes. Prohibición de Recibir Préstamos. Áreas de Riesgos de las AFP cuentan con checklist de requisitos de BGC para evaluar inversión. Estructura de Participación Transparente. Divulgación adecuada de información financiera. Dependiendo del tipo de operación la comprobación de:

178 Empresas Invertidas por las AFP Sector Empresas Invertidas en el Sector Rango de Participación Patrimonial Con Derecho a Voto Empresas en el IBGC Período de Directorio Minería % % 2 1 a 3 Años Manufacturas % % 3 1 a 3 Años Energía y Electricidad % % 2 1 a 3 Años Construcción % 1 3 Años Financiero % % 1 1 a 3 Años Servicios % 1 3 Años Total Empresas 22 10

179 II. Logros en la Recomendación N 5: Votando en las Juntas Generales de Accionistas La industria de Fondos de Pensiones está considerando mejorar y revelar sus políticas de votación Las AFP estiman que las empresas invertidas deberán tomar las siguientes iniciativas con relación a la Junta General de Accionistas: Reglamento de la Junta General de Accionistas. Convocatoria a la Junta General de Accionistas. Asistencia y Votación en la Junta General de Accionistas. Información para el Accionista. Incorporación de Política de Votación por Poder (Proxy voting).

180 III. Logros en la Recomendación N 8 : Mejorando el funcionamiento de los Directorios Las AFPs mejorarán los procedimientos para seleccionar los candidatos para directores independientes, con el objetivo de garantizar los mejores intereses de los fondos. Las AFPs van a incentivar el entrenamiento de los directores y buscar procedimientos adecuados para evaluar su desempeño. Las AFPs incentivarán la evaluación del desempeño de los directorios en las compañías en las que invierten.

181 III. Logros en la Recomendación N 8 : Mejorando el funcionamiento de los Directorios Desde el 2012 las AFP han implementado la política de elección de directores independientes, a través de empresa de head hunter con experiencia en selección de directores y gerentes generales. La empresa de head hunter confeccionará una relación dinámica y permanente de candidatos a directores independientes por entidades y sectores. La empresa de head hunter debe presentar una terna de candidatos, con mostrada experiencia, solvencia moral, independencia y exitosa aplicación de buenas prácticas de gobierno corporativo. El director no debe tener ningún vínculo directo o indirecto con la empresa. El periodo máximo de un director independiente será de hasta 3 años si el nombramiento es por 1 año y 4 años si el nombramiento es por 2. El director independiente no deberá ser director en mas de una empresa invertida, excepto en casos excepcionales. Las AFP buscarán que los Directores Independientes tengan participación principalmente en los Comités de Auditoría, Nombramientos y Remuneraciones y Gobierno Corporativo. Los Directores independientes son convocados a reuniones periódicas en la AAFP.

182 IV. Logros en la Recomendación N 10 Abordando el Gobierno Corporativo propio de los inversionistas institucionales. Las AFPs mejorarán sus prácticas de buen gobierno corporativo. Las AFP harán públicos sus códigos de ética en sus sitios web. Las 4 AFP figuran en el IBGC elaborado por la BVL. INDICE DE BGC Año AFP HORIZONTE 2010 AFP INTEGRA 2011 PRIMA AFP 2013 PROFUTURO AFP 2009

183 IV. Recomendación N 10 Abordando el Gobierno Corporativo propio de los inversionistas institucionales. AFP cuentan en su página web con información acerca de la sociedad. AFP cuentan con información y prácticas de Gobierno Corporativo. AFP tienen publicados códigos de ética y estándares de conducta profesional Responsabilidad social: en las páginas web de las AFP se aprecian las acciones corporativas y cumplimiento individual de los trabajadores en desarrollar relaciones con grupos de interés, comunidades y medio ambiente a largo plazo. Las AFP cuentan con personas encargadas de relaciones con stakeholders.

184 V. Acciones que aún Requieren Atención Enfatizar la importancia del entrenamiento de directores independientes en prácticas de BGC. Evaluar el desempeño de directores independientes por parte de las empresas invertidas. Definir el tipo de reporte por parte del directorio sobre la empresa invertida.

185 OECD MESA REDONDA LATINOAMERICANA DE GOBIERNO CORPORATIVO 2013 LUIS VALDIVIESO MONTANO PRESIDENTE DE LA AAFP Junio 2013

186 El Papel de los II s en el Fortalecimiento del Gobierno Corporativo de los Emisores de Valores en Colombia Clara Eugenia Castillo López Superintendencia Financiera de Colombia Quito - Junio 21 de 2013

187 Participación de los II s Cifras en millones de dólares. Corte: 31 de marzo de ,16% 6,01% 40,34% 3,71% 13,07% 3,86% 1,06% 1,07% 5,76% 16,97% Est. de crédito AFP Aseguradoras Com. Bolsa Carteras Col. Fiduciarias Personas Naturales Sector Real Fondos y Personas Ext. Otros Cap. Bursátil BVC: US $ Superfinanciera, Primera en Transparencia

188 Implementación Grado de Implementación de las Recomendaciones AFP SF Recomendaciones Superfinanciera, Primera en Transparencia

189 Superfinanciera, Primera en Transparencia Principales retos Fortalecer la comunicación entre los II s y las empresas en las que invierten, a fin de que aquellos puedan influir eficazmente en el gobierno corporativo de estas últimas. Incentivar a las Sociedades Fiduciarias y demás II s a fortalecer su rol como accionistas minoritarios activos de los emisores de valores. Impulsar la regulación e implementación del voto electrónico para emisores nacionales. Promover la incorporación del estándar internacional para la antelación de la convocatoria a la AGA, y para la entrega de la información sobre los temas a tratar en la misma, dentro de la revisión y actualización del Código de Mejores Prácticas Corporativas de Colombia Código País. Contribuir a consolidar la labor de las agremiaciones frente al rol de los II s en el fortalecimiento del Gobierno de los Emisores.

190 Respuestas a las recomendaciones de la Mesa Redonda OCDE Quito, junio de 2013 Superfinanciera, Primera en Transparencia