The Securities and Exchange Commission of Brazil (CVM) ( pt, Comissão de Valores Mobiliários) is the securities market authority in

Brazil Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...

. 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 t ...

s in Brazil and all of its participants. This includes

stock exchanges A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for the i ...

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 (list ...

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

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 most of the time the investor purchases some species of property. Type ...

. It is an independent agency linked to the

Ministry of Finance (Brazil) The Ministry of Economics ( pt, Ministério da Economia, links=yes) 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 eco ...

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 The International Organization of Securities Commissions (IOSCO) is an association of organizations that regulate the world's securities and futures markets. Members are typically primary securities and/or futures regulators in a national jurisdic ...

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 is a type of market abuse where there is a deliberate attempt to interfere with the free and fair operation of the market; the most blatant of cases involve creating false or misleading appearances ...

, *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 markets ...

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 B3 S.A. - Brasil, Bolsa, Balcão (in English, ''B3 - Brazil Stock Exchange and Over-the-Counter Market''), formerly BM&FBOVESPA, is a stock exchange located in São Paulo, Brazil, and the second oldest of the country. Its current form can be trac ...

, 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 ( , , ; literally 'River of January'), or simply Rio, is the capital of the state of the same name, Brazil's third-most populous state, and the second-most populous city in Brazil, after São Paulo. Listed by the GaWC as a b ...

and has two regional offices in

São Paulo São Paulo (, ; Portuguese for 'Saint Paul') is the most populous city in Brazil, and is the capital of the state of São Paulo, the most populous and wealthiest Brazilian state, located in the country's Southeast Region. Listed by the GaWC a ...

and

Brasília Brasília (; ) is the federal capital of Brazil and seat of government of the Federal District. The city is located at the top of the Brazilian highlands in the country's Central-West region. It was founded by President Juscelino Kubitsche ...

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

President of Brazil The president of Brazil ( pt, Presidente do Brasil), officially the president of the Federative Republic of Brazil ( pt, Presidente da República Federativa do Brasil) or simply the ''President of the Republic'', is the head of state and head o ...

. 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)