Brazil: Regulatory Agencies and Regulation - Securities Commission (CVM)

Article Index

The Securities Commission (CVM) is the governmental agency which has been given the task of maintaining the integrity of the workings of the Brazilian capital market. It is expected to look after the regulation and inspection of the activities of investors, financial intermediaries, stock exchanges and public corporations in Brazil. Like the Central Bank, the CVM also is an organ which carries out the Resolutions of the National Monetary Council. It is the regulatory agency of the securities market and its derivatives, such as: options for buying and selling, futures and future operations with shares, indices and other securities.

The Superintendency for Private Insurance (SUSEP) takes responsibility for the regulation and oversight of insurance activities and public entities concerned with private insurance schemes in the country.

The Self-Regulating Entities are represented by the exchanges dealing in stocks, commodities, institutions connected with the systems for the negotiation, registration and custody of stock. The regulatory organs delegate to them the tasks of standardization, monitoring and inspection of the activities of its members.

The financial system regulating instruments are, in order of decreasing importance: the Brazilian Constitution, the Federal Laws, Resolutions of the CMN, Directives, Circulars and Deliberations of the regulatory organs and the Statutes and Resolutions of the self-regulating entities.

The Brazilian regulatory system follows the so-called Mixed Regulation model, in which the government delegates to the self-regulating entities part of the tasks of oversight and orientation of its membersí transactions.