“Since then, with the establishment of goals, investment in technology and also with the advent of Law n° 13,506/2017, which improved the rules governing the enforcement process and updated the levels of fines to which violators are subject, the CVM today is undeniably stronger, and continues to improve significantly year after year.

The enforcement activity does not and should not have the exercise of punitive power as an end. It is, above all, a means of investor protection and market orientation. And it is in this sense that the continuous improvement of the sanctioning function is justified, and the evolution of the way of thinking about the enforcement process.

The precedents are also a powerful tool insofar as they reveal regulatory trends and allow the CVM to express its understanding (and expand the participants’ knowledge) about expected conduct and non-conformities of certain practices, as well as their potentially harmful effects on the market.

For this reason, as I have done on other occasions, I never tire of applauding: Eli and Daniel do a great service to the market by shedding light on CVM’s judgments in a technical, critical and grounded way, catalyzing their guiding effects and contributing to their adequate understanding and contextualization.”

Leonardo P. G. Pereira
Former President of CVM