Securities and Exchange Commission of Brazil (CVM)

Basic Information

The Comissão de Valores Mobiliários (CVM), or Securities and Exchange Commission of Brazil, is the national regulatory authority overseeing Brazil’s securities markets. Established in 1976 under the Brazilian federal government, it operates as an independent agency to ensure market transparency, investor protection, and fair practices. Its official website (https://www.gov.br/cvm/en) serves as a central hub for regulatory updates, filings, and investor resources.

Historical Background

CVM was founded under Law No. 6,385/1976, modeled after the U.S. Securities and Exchange Commission (SEC), to address the need for a structured regulatory framework in Brazil’s rapidly growing capital markets. Over the decades, it has evolved to incorporate international standards, including aligning with the International Organization of Securities Commissions (IOSCO) principles. Key reforms, such as the 2001 update to the Brazilian Corporations Law, further expanded CVM’s enforcement powers and oversight capabilities.

Legal Authority and Regulatory Framework

CVM derives its authority from Brazil’s Securities Law (Lei das S.A.), which mandates its role in:

Enforcing compliance with securities regulations.
Approving public offerings and supervising issuers.
Licensing and monitoring financial intermediaries (e.g., brokers, fund managers).
Investigating market abuse, including insider trading and fraud.

It also enforces resolutions such as CVM Instruction No. 44, which governs corporate disclosure requirements.

Core Responsibilities and Regulatory Scope

CVM’s oversight spans multiple areas:

Securities Markets: Regulates equities, bonds, derivatives, and investment funds.
Public Companies: Mandates timely financial disclosures and corporate governance compliance.
Intermediaries: Licenses and supervises brokers, asset managers, and advisory firms.
Investor Protection: Investigates complaints, enforces anti-fraud measures, and promotes financial literacy.
Market Integrity: Monitors for manipulation, enforces anti-money laundering (AML) rules, and reviews mergers involving listed entities.

Contact Information

Headquarters Address:
Comissão de Valores Mobiliários (CVM)
Rua Sete de Setembro, 111 – 19° andar
Centro – Rio de Janeiro – RJ
20050-901 – Brasil

Phone: +55 21 3554-8680
Email: [email protected]
Website: https://www.gov.br/cvm/en

Verifying Regulatory Status

To confirm if an entity is regulated by CVM:

Visit the CVM’s “Brazilian Market Participants” database via its official website.
Search by the entity’s name or registration number (CNPJ).
Cross-check licenses (e.g., brokerage, fund management) under the “Registry” section.