Our partner Francisco da Costa e Silva spoke to ESTADÃO in a report stating that the CVM took, on average, 552 working days to adjudicate each administrative sanctioning case between 2020 and 2025 – the data covers the period from the formalisation of the charge to the authority’s final decision. During this period, the newspaper reports, 266 cases were concluded. The CVM told the newspaper that it has a plan to expand its capacity for oversight and supervision of the capital markets.
According to Costa e Silva, who served as chairman of the regulator between 1995 and 2000, although some cases were resolved more quickly, on average, the processing time is excessive given the scale of the Brazilian capital markets and still undermines the preventive function of sanctions. “It is difficult to say what the ideal timeframe is because it depends on the complexity of the case. On the other hand, if the CVM takes around five to ten years to punish an offender, the deterrent effect on such practices in the capital market is lost,” he emphasised.
According to our partner, since his time as president of the authority, there has been a trend for the federal government to allocate an ever-increasing share of these resources to balancing the public accounts. “The need to minimise the country’s fiscal problems meant that the budget was always subject to cuts. There was never much sensitivity (on the part of the federal government) regarding the CVM’s efficiency,” he noted.