Publications

Publications

Uncategorized
18 / 07 / 2019

Increase of Coercive Fines Thresholds – CVM

In accordance with recent amendments approved by CVM regarding its sanctioning procedures, the CVM Normative Ruling No. 608 published on the Official Gazette of the Federal Executive of June 26, 2019 modified provisions related to the enforcement of coercive fines to capital market’s participants.

For purposes of clarification, ordinary coercive fines are those arising from a belated or inadequate presentation of periodic and occasional information by capital market’s participants, and the extraordinary ones are those arising from non-compliance with specific orders issued by the CVM to a participant.

Under the terms of the new Ruling, ordinary fines will be quantified in accordance with pre-determined criteria, such as the type of the committed infraction and the participant involved. Regarding extraordinary fines, CVM increased their daily threshold, allowing, under certain circumstances, an extraordinary fine in the amount of up to R$ 50,000.00 per day.

Lastly, we stress out that CVM Normative Ruling No. 608 shall enter into force on January 1st, 2020.

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

Jarbas Velloso – jv@zaslaw.com.br

Marcel Kim Dib – mkd@zaslaw.com.br