Brazil Securities Commission publishes Twin Peaks exploratory study outlining 16 challenges for a potential shift to prudential and conduct supervision

The Brazil Securities Commission (CVM), through its Economic Analysis, Risk Management and Integrity Office (ASA), has published an exploratory study on the Twin Peaks regulatory model, assessing what it would take for Brazil to move from its long-standing sector-based supervisory structure to a framework organised around two objectives, prudential oversight and market conduct. The study, developed during 2025 with contributions from the EVOLUA study group run by ASA in partnership with FGV-RJ and supported by ANBIMA, reviews international experiences in Australia, the United Kingdom and South Africa and provides a descriptive look at regulatory changes across G20 financial systems. It identifies 16 challenges for any migration to Twin Peaks, including improving regulators’ operational autonomy and resourcing and defining leadership for macroprudential regulation, points also referenced as recommendations in the IMF and World Bank Financial Sector Assessment Program review of Brazil’s financial system. The paper frames its conclusions as technical views that do not necessarily represent the CVM’s institutional position.