Securities and Exchange Commission (Brazil)
Encyclopedia
The Securities Commission of Brazil (CVM) is the securities market authority in Brazil
. It regulates the capital markets in Brazil and all of its participant. This includes stock exchanges, public companies, financial intermediaries and investors. It is an independent agency linked to the Ministry of Finance (Brazil)
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
guidelines.
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 BM&F Bovespa (São Paulo Stock Exchange) the largest stock exchange in South America and the 13th largest in the world (see list of stock exchanges)
and has two regional offices in São Paulo
and Brasília
. It is managed by a board composed of a Chairman and four commissioners, all appointed by the President of Brazil. 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 Chairman, and who coordinates all staff activities of the CVM.
Current Board members are;
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
. It regulates the capital markets in Brazil and all of its participant. This includes stock exchanges, public companies, financial intermediaries and investors. It is an independent agency linked to the Ministry of Finance (Brazil)
Ministry of Finance (Brazil)
The Ministry of Finance of Brazil was created in 1808 with the title Secretaria de Estado dos Negócios do Brazil e da Fazenda. The ministry is responsible for formulating and implementing the country's economic policy.-External links:*...
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 Organization of Securities Commissions
The International Organization of Securities Commissions is an association of organisations that regulate the world’s securities and futures markets....
guidelines.
Objectives
The CVM has the following objectives;- to assure the proper functioning of the exchange and over-the-counter markets
- to protect securities holders against fraudulent issues and illegal actions
- to protect consumers against fraud and market manipulation
- to make sure that markets are transparent and companies disclose all relevant information
- to make sure that all market participants adopt fair trading practices
- to promote investment in financial markets 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.
- It runs a register of all publicly held companies and makes sure that those companies adhere to listing rules.
- It set the rules for securities trading on the stock exchanges 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 BM&F Bovespa (São Paulo Stock Exchange) the largest stock exchange in South America and the 13th largest in the world (see list of stock exchanges)
Structure
The CVM is headquartered in Rio de JaneiroRio de Janeiro
Rio de Janeiro , commonly referred to simply as Rio, is the capital city of the State of Rio de Janeiro, the second largest city of Brazil, and the third largest metropolitan area and agglomeration in South America, boasting approximately 6.3 million people within the city proper, making it the 6th...
and has two regional offices in São Paulo
São Paulo
São Paulo is the largest city in Brazil, the largest city in the southern hemisphere and South America, and the world's seventh largest city by population. The metropolis is anchor to the São Paulo metropolitan area, ranked as the second-most populous metropolitan area in the Americas and among...
and Brasília
Brasília
Brasília is the capital city of Brazil. The name is commonly spelled Brasilia in English. The city and its District are located in the Central-West region of the country, along a plateau known as Planalto Central. It has a population of about 2,557,000 as of the 2008 IBGE estimate, making it the...
. It is managed by a board composed of a Chairman and four commissioners, all appointed by the President of Brazil. 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 Chairman, and who coordinates all staff activities of the CVM.
Current Board members are;
- Ms. Maria Helena Santana (Chairperson)
- Mr. Marcos Barbosa Pinto
- Mr. Eli Loria
- Mr. Otavio Yazbek
- Mr. Alexsandro Broedel Lopes