New Rules On Infractions In Capital Markets

Provisional Measure (MP) No. 784 broadened enforcement powers of the Central Bank and the Securities Commission (CVM)¹ effective June 8, 2017.

With respect to the CVM – which is the scope of this article – MP No. 784/2017 creates a leniency program, increased penalties and adopted new punitive procedures.

Leniency agreement

The leniency program is inspired by the antitrust leniency program existing since 2000.

Articles 30 to 33, and 35, of MP No. 784/2017 grant CVM powers to enter into leniency agreements under which individuals and corporations, in return for their cooperation in prosecuting a case, are excused from administrative penalties. The cooperation needs to result in the identification of other members taking part in the violation and in the obtaining of documents that evidence such violation.