On 4 April 2023, the Ministry of Development, Industry, Commerce and Services published Ordinance GM/MDIC No. 69/2023 (“Ordinance“), establishing the Seal of Good Regulatory Practices (“Seal“).
This initiative is in line with the best environmental, social and governance (ESG) practices and aims to recognize infralegal normative acts in line with best national and international practices. The Seal is intended for federal, state, district and municipal acts of general interest to economic agents or users of the services provided.
In more detail
The Ordinance states that infralegal normative acts may be submitted for evaluation by the Secretariat for Competitiveness and Regulatory Policy in order to receive the Seal. This assessment looks at compliance with the criteria of predictability, regulatory quality, social participation and regulatory convergence.
Each of the requirements will be evaluated based on the completion of a requirements sheet, which will score the normative act on a scale from zero to 10 points. Based on the score, the act will earn a Gold Standard Seal (eight to 10 points), Silver Standard Seal (six to seven points) or Bronze Standard Seal (four to five points). A normative act that obtains a score lower than four points will not be entitled to obtain the Seal.
The Secretariat for Competitiveness and Regulatory Policy will be responsible for evaluating and communicating the result to the responsible regulator by sending the award representing the Seal within 30 days of the result being disclosed. The use of the Seal may impact the companies’ ESG metrics, depending on their receptivity by the market.
The Ordinance revoked Ordinance No. 6,554/2022, which had instituted the similar “Quality Seal Program.”