In an article published in Capital Aberto, our lawyer Luiz Pompeu analyzes the need to standardize the dosimetry of the Securities and Exchange Commission’s (CVM) penalties.

Just as in criminal proceedings, in the administrative sanctioning proceedings (PAS) conducted by the CVM, the dosimetry of penalties is based on a three-phase procedure: first, the base penalty is set, then the aggravating and mitigating circumstances are applied and, finally, the cause for reducing the penalty.

However, CVM Resolution 45/2021, which sets out the PAS procedure, does not regulate how the mitigating and aggravating factors should be applied to the base sentence.

In the text, Luiz argues that the lack of standardization in the application of the formulas for calculating the penalty creates legal uncertainty for the regulated and compromises basic principles of administrative sanctioning law, such as proportionality, reasonableness and the isonomic treatment of the regulated.

According to him, it is necessary to establish an objective criterion to standardize the calculation of penalties, and it is up to the CVM Board to standardize the Authority’s jurisprudence, until a new resolution is issued.

Read the full article here.