Brazil Securities Commission mandates use of its New Digital Protocol to report suspected securities law violations

The Brazil Securities Commission (CVM), through its Market and Intermediaries Relations Superintendency and its Market Supervision, Derivatives and Systemic Risk Superintendency, issued guidance requiring reports of suspected breaches of rules under CVM supervision to be submitted via the authority’s website using its New Digital Protocol system. The circular highlights that the digital channel provides immediate proof of submission, automatically inserts documents into the relevant administrative investigation process, routes communications to the responsible technical area, mitigates operational errors, and improves processing efficiency, cost-effectiveness, and information security. It also clarifies internal routing: suspected violations related to intermediaries’ activities (including possible breaches of CVM Resolution 35) should be directed to Intermediaries Supervision Management 1 (GSUI-1/SMI); suspected misconduct by investment advisers to Intermediaries Supervision Management 2 (GSUI-2/SMI); and suspected issues involving secondary-market trading (CVM Resolution 62) or insider trading (Article 27-D of Law 6,385) to Market Monitoring Management (GMA/SMD).