Published in the Official Gazette of the Federal Executive on June 18, 2019, CVM Normative Ruling No. 607 provided for relevant changes in CVM’s sanctioning procedures.

Among such changes, we highlight the classification of administrative infractions into groups which shall have their basis for pecuniary penalties limited to a pre-determined maximum amount, ensuring greater predictability to the dosimetry of CVM’s pecuniary penalties.

Another relevant aspect of this Ruling is the expansion of the list of infractions subject to the simplified sanctioning procedure, which applicability is related to lesser complexity infractions with a faster paced procedural act.

In addition, we highlight other amendments and innovations:

• The regulation of the procedure applicable to supervisory agreements, introduced by Law 13.506/2017 and applicable to individuals or entities who confess the commitment of legal or regulatory violations;
• The possibility for the superintendent responsible for the administrative sanctioning process to file a new manifestation after the defendant’s defense, in relation new facts and documents presented by the defendant;
• The provision of criteria for decisions regarding the non-prosecution of an administrative sanctioning process; and
• The adoption of electronic means for the communication of procedural acts, as well as the publication of such procedural acts at CVM’s Electronic Bulletin, replacing the Official Gazette of the Federal Executive.

Lastly, we stress out that CVM Normative Ruling No. 607 shall enter into force on September 1st, 2019.

If you need more information and clarifications, please contact us:

Jarbas Velloso – jv@zaslaw.com.br

Marcel Kim Dib – mkd@zaslaw.com.br