The Securities and Exchange Commission of Brazil (CVM) () is the securities market authority in

Brazil Brazil, officially the Federative Republic of Brazil, is the largest country in South America. It is the world's List of countries and dependencies by area, fifth-largest country by area and the List of countries and dependencies by population ...

. It regulates the

capital market A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold, in contrast to a money market where short-term debt is bought and sold. Capital markets channel the wealth of savers ...

s in Brazil and all of its participants. This includes

stock exchanges A stock exchange, securities exchange, or bourse is an Exchange (organized market), exchange where stockbrokers and stock trader, traders can buy and sell security (finance), securities, such as share (finance), shares of stock, Bond (finance) ...

public companies A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange ( ...

financial intermediaries A financial intermediary is an institution or individual that serves as a "Intermediary, middleman" among diverse parties in order to facilitate financial transactions. Common types include commercial banks, investment banks, stockbrokers, insura ...

and

investors An investor is a person who allocates financial capital with the expectation of a future return (profit) or to gain an advantage (interest). Through this allocated capital the investor usually purchases some species of property. Types of in ...

. It is an independent agency linked to the

Ministry of Finance (Brazil) The Ministry of Finance () was created in 1808 with the title ''Secretaria de Estado dos Negócios do Brasil e da Fazenda''. The ministry is responsible for formulating and implementing the country's economic, fiscal and financial policy under ...

History

The CVM was established on 7 December 1976, with the passing of the Brazilian legislation Law (6385/76). The CVM responsibilities and powers have been expanded since by Law No. 6422 of 8 June 1977, Law No. 9457 of 5 May 1997, Law No. 10303 of 31 October 2001, Decree No. 3995 of 31 October 2001, Law No. 10,411 of 26 February 2002. In addition the CVM also performs duties under the corporation act as part of Law (6404/76) On Dec 7 2009, CVM enacted a new regulation to enhance the information provided to investors by companies issuing securities in line with

International Organization of Securities Commissions International is an adjective (also used as a noun) meaning "between nations". International may also refer to: Music Albums * ''International'' (Kevin Michael album), 2011 * ''International'' (New Order album), 2002 * ''International'' (The T ...

guidelines.

Objectives

The CVM has the following objectives: *to assure the proper functioning of the exchange and over-the-counter markets, *to protect

securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...

holders against fraudulent issues and illegal actions, *to protect consumers against fraud and

market manipulation In economics and finance, market manipulation occurs when someone intentionally alters the supply or demand of a security to influence its price. This can involve spreading misleading information, executing misleading trades, or manipulating ...

, *to make sure that markets are transparent and companies disclose all relevant information, *to make sure that all market participants adopt fair trading practices, and *to promote investment in

financial market A financial market is a market in which people trade financial securities and derivatives at low transaction costs. Some of the securities include stocks and bonds, raw materials and precious metals, which are known in the financial marke ...

s and increase the capitalization of Brazilian publicly held companies.

Responsibilities

To meet the objectives, the CVM *Supervises all market participants and has the power to set rules and discipline participants as well as license financial intermediaries, *Runs a register of all publicly held companies and makes sure that those companies adhere to listing rules, and *Sets the rules for securities trading on the

and can suspend or cancel trading, issuance or distribution of securities and if necessary suspend stock exchange operations. CVM also has the jurisdiction to establish, prosecute and punish irregularities committed in the market. If it has any suspicion CVM can start an investigation, through which it may collects information, take testimony and evidence in order to clearly the identify of the person responsible of illegal practices. If the CVM charges any individuals or companies they have full rights of defense in court. The CVM is responsible for regulating the B3 stock exchange, the largest stock exchange in South America and the 13th largest in the world.

Structure

The CVM is headquartered in

Rio de Janeiro Rio de Janeiro, or simply Rio, is the capital of the Rio de Janeiro (state), state of Rio de Janeiro. It is the List of cities in Brazil by population, second-most-populous city in Brazil (after São Paulo) and the Largest cities in the America ...

and has two regional offices in

São Paulo São Paulo (; ; Portuguese for 'Paul the Apostle, Saint Paul') is the capital of the São Paulo (state), state of São Paulo, as well as the List of cities in Brazil by population, most populous city in Brazil, the List of largest cities in the ...

and

Brasília Brasília ( ; ) is the capital city, capital of Brazil and Federal District (Brazil), Federal District. Located in the Brazilian highlands in the country's Central-West Region, Brazil, Central-West region, it was founded by President Juscelino ...

. It is managed by a board composed of a chairperson and four commissioners, all appointed by the

President of Brazil The president of Brazil (), officially the president of the Federative Republic of Brazil () or simply the ''President of the Republic'', is the head of state and head of government of Brazil. The president leads the executive branch of the ...

. The board designs policies and general guidelines to be followed by the chief staff members. The CVM is run day to day by a chief executive officer (CEO), who is appointed by the chairperson, and who coordinates all staff activities of the CVM. Current Board members are: *Leonardo P. Gomes Pereira (Chairperson) *Otavio Yazbek *Gustavo Tavares Borba *Ana Dolores Moura Carneiro de Novaes *Roberto Tadeu Antunes Fernandes

References

External links

CVM official websiteEnglish version
{{DEFAULTSORT:Securities And Exchange Commission (Brazil)