pc
nid 91105
Mar 05, 2026
ggallwey@vixio.com
Brazil
Administrative Council for Economic Defense
financial services
109% of draft length
draft in Generated
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1892 charsBrazil's Securities Commission Implements New Digital Protocol for Reporting Regulatory Violations
On March 5, 2026, the Superintendencies of Market Relations and Intermediaries (SMI) and Market Supervision, Derivatives and Systemic Risks (SMD) of Brazil's Securities Commission (Comissão de Valores Mobiliários — CVM) published Joint Circular Notice CVM/SMI/SMD 1/2026, establishing a new communication procedure for reporting suspected violations of securities legislation.
The new protocol requires all reports of regulatory breaches to be submitted directly through the CVM's website via its digital filing system, replacing previous communication methods. The digital protocol offers enhanced security for market participants through immediate confirmation of submission and for the CVM's technical areas through automated document processing and routing to responsible departments. The system reduces operational errors and improves efficiency, processing speed, and information security.
The circular clarifies reporting procedures for specific violation categories. Reports concerning intermediary conduct and potential breaches of CVM Resolution 35 must be directed to the Intermediaries Supervision Management 1 (GSUI-1/SMI). Reports regarding investment adviser conduct should be sent to Intermediaries Supervision Management 2 (GSUI-2/SMI). Reports involving secondary market securities trading operations under CVM Resolution 62 or trading on privileged information under Article 27-D of Law 6,385 must be submitted to the Market Monitoring Management (GMA/SMD).
Market participants and regulated entities must now use the new digital protocol for all violation reports effective immediately. The CVM's technical areas emphasise that proper routing of reports to the designated management units ensures appropriate investigation and processing.
**Reference:**
Comissão de Valores Mobiliários. Ofício Circular Conjunto CVM/SMI/SMD 1/2026. Available at: https://www.gov.br/cvm
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2056 charsBrazil Securities and Exchange Commission Introduces Digital Protocol for Reporting Suspected Market Infractions
On March 5, 2026, the Brazilian Securities and Exchange Commission (CVM) announced a new procedure for reporting occurrences or indications of potential violations of securities market legislation. The new procedure is set out in Joint Circular Letter No. 1/2026/CVM/SMI/SMD, issued by the Superintendence of Market and Intermediary Relations (SMI) and the Superintendence of Market Supervision, Derivatives and Systemic Risks (SMD).
Under the circular letter, communications concerning suspected regulatory violations must now be submitted directly through the CVM’s digital protocol system on the authority’s website, replacing the previous practice of sending reports via email. The change reflects the increasing digitalization of administrative processes and aims to improve the efficiency, traceability and security of regulatory reporting.
The CVM notes that use of the digital protocol system allows submissions to be automatically incorporated into the administrative review process and routed to the responsible supervisory unit, reducing operational errors and improving processing speed. Participants submitting reports also receive immediate confirmation of submission through the system.
The circular also clarifies which CVM supervisory teams should receive different types of reports.
Reports concerning potential violations by securities intermediaries, including obligations under CVM Resolution 35/2021 , should be directed to the Intermediary Supervision Management 1 (GSUI-1/SMI).
Complaints relating to the conduct of investment advisors should be submitted to Intermediary Supervision Management 2 (GSUI-2/SMI).
Reports concerning trading activity in the secondary securities market, including potential insider trading under Article 27-D of Law 6,385/1976 , should be directed to the Market Monitoring Management (GMA/SMD).
The CVM recommends that when submitting communications through the digital protocol, participants direct the submission to the appropriate supervisory unit where possible in order to facilitate review.