Public hearing to discuss the new rules on the calculation of fines and the leniency agreement is underway

The Brazilian Securities and Exchange Commission – CVM – has started the public hearing on the instruction that will regulate its activity. The draft, available since June 18, adjusts the regulatory framework to the Law 13,506 – edited last year, the text introduced the possibility of the regulator closing an administrative agreement as part of the supervision process (also called leniency agreement) and brought up the maximum value of the fine from BRL 500,000 to BRL 50 million. Given its relevance and scope, Amec will be discussing the standard during its Technical Commission meeting in July.
With respect to the leniency agreement, the CVM suggests the creation of the Committee of Supervision Agreement – CAS. The body, independent and separate from the regulator’s supervision area, would be responsible for analyzing, negotiating and closing the agreements. Regarding the fines, the main innovation proposed in the draft is the creation of a new system to calculate the dosimetry.
CVM suggests the setting of maximum fines depending on the severity of the infraction – divided into five groups, with maximum values ranging from BRL 300,000 to BRL 20 million. The values would also take aggravating and mitigating factors into account. “We need to analyze several details. Among many other points, we need to evaluate whether the division of the groups is adequate and whether it’s necessary to establish a maximum floor for the fines,” explains Renato Vetere, Amec’s attorney.
Another topic to be debated by Amec is the possibility of reducing the fine depending on the compensation of damages to be paid to investors. Vetere emphasizes that although the mechanism is positive in conceptual terms, it’s necessary to evaluate whether it will be effective in practical terms.
The public hearing notice and the instruction draft are available here . Comments and contributions are accepted by August 17.