The Brazil Securities Commission (CVM) released its Sanctioning Activity Report for the third quarter of 2025, consolidating supervisory and enforcement activity and case outcomes for July to September 2025. The update covers preventative measures, the stock of ongoing potentially sanctionable cases, and sanctions and settlements decided by the CVM Board. Over the quarter, the CVM issued 175 warning letters and 11 stop orders, with the Securities Registration Superintendence (SRE) responsible for 68 of the warning letters. The report describes warning letters as notices of identified irregularities that do not justify opening an administrative inquiry or issuing an accusation term, while stop orders are precautionary measures aimed at preventing or correcting irregular conduct. As of September 2025, 828 potentially sanctionable administrative proceedings were ongoing across eight technical areas (SEP, SMI, SIN, SSE, SRE, SNC, SSR and SPS). During the quarter, 33 investigative administrative procedures were opened, resulting in 24 ordinary-track accusation terms, six simplified-track accusation terms and three administrative inquiries, and 31 administrative processes were concluded with accusations, moving to sanctioning administrative proceedings to be decided by the CVM Board or potentially closed through settlement. The Board approved 10 settlement agreements totalling BRL 8.98 million and, in 10 sanctioning proceedings it judged, sanctioned 24 individuals (14 fined, two warned and eight banned) and acquitted 14, applying BRL 83,475,960.32 in fines. The CVM also sent 21 referrals to prosecutors (10 to state prosecutors’ offices and 11 to the federal prosecutor) involving suspected public-prosecution crimes, including unauthorised exercise of an office/profession/activity and fraud. Proceedings that moved into the sanctioning phase will be judged by the CVM Board or may be closed through a settlement term if proposals are submitted.

Original source View in tracker