A VERDADE POR TRÁS DO SUCATEAMENTO DA CVM QUE NINGUÉM FALA | Market Makers #367

Summary

João Pedro Nascimento, ex-president of CVM, discusses the severe underfunding and technological shortcomings of the Brazilian securities regulator. He highlights recent improvements in personnel, technology, and budget, particularly a STF decision that may triple the CVM's discretionary resources. The conversation covers regulatory achievements (e.g., fund regulation, CVM Fácil), challenges in supervision, and potential areas for market growth like agribusiness, green economy, and crypto.

• CVM faced severe resource constraints including lack of Wi-Fi and outdated technology.
• A STF ruling by Minister Flávio Dino may nearly triple the CVM's budget by directing more of the inspection fee to the agency.
• Under Nascimento, CVM hired 90 new senior staff, its first public exam in 14 years, and integrated with federal systems.
• Key regulatory advances include Resolution 175 (funds overhaul), CVM Fácil (access for small issuers), and rules for non-resident investors.
• Nascimento advocates for a 'Twin Peaks' regulatory model separating prudential and conduct supervision.
• Growth opportunities identified in agribusiness, green economy, digital assets, and football clubs (SAFs).
• The CVM still lacks the capacity to prevent fraud proactively, relying on risk-based supervision.
• The conversation emphasizes the need for more technology, personnel, and inter-agency cooperation.