The Brazil Securities Commission (CVM), through its Superintendence of Institutional Investor Supervision (SIN), published a circular letter setting out regulatory guidance for copytrade services in the financial and capital markets to ensure professionals involved and service platforms comply with CVM rules and other applicable standards. The guidance addresses how copytrade is defined and when it is characterised as a professional activity of securities analysis, including its influence on investment decisions, remuneration arrangements and the need for securities analyst accreditation. It reinforces that platforms and professionals offering copytrade should ensure all traders whose transactions are copied are duly accredited as securities analysts, that analysts avoid recommending assets where they have relevant financial or commercial interests, that investors are properly informed about the nature of copytrade, and that copytrade transactions are carried out exclusively in a simulator environment. The circular also emphasises transparency on key risks, including the risk of losses, market volatility, performance history and investor understanding, and notes that non-compliance may lead to CVM sanctions and could be characterised as irregular market practice.

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