Mandate and compliance before enthusiasm: a proof of theoretical equivalence does not create an operational equivalence.
Regulators do not recognize an mathematical equivalence by default; formal approval is required.
In Brazil, the CVM imposes strict limits on risk models and methodologies, often rendering equivalences unrecognized without an approval process.
For example, even if an equivalence is proven between two sensitivity measures, the CVM may require institutions to use a specific method for calculating capital requirements, regardless of the theoretical proof.
Mathematical validity does not imply regulatory permission.