Put: Andre Jerusalem

The Brazilian Securities and Exchange Commission (“CVM”) and B3 began, in 2021, cooperation agreement activities to supervise public offerings of securities distributed with restricted efforts, which occur according to the rules of CVM Instruction 476. This agreement, which was signed in December 2020 and has a duration of 60 months, includes joint activities to monitor and inspect compliance with certain regulatory requirements. 

As 2021 progressed, several inspection actions were carried out as a result of this partnership. Among the results obtained within the scope of supervision regarding the disclosure of financial statements by unregistered issuers, in the case of securities admitted to secondary trading on regulated markets, the improvement of control and disclosure of information on issues stands out, providing greater transparency for the market. It is also worth mentioning the issuance of 15 warning letters to several of these unregistered issuers, which is considered positive and satisfactory, due to the corrective actions adopted by the regulated entities. 

Another item included in the agreement that generated positive impacts during the period was the identification and supervision of non-compliance with the minimum limit of four months between two public offerings distributed with restricted efforts for the same type of security. In this regard, different sanctioning actions were carried out, which involved both the issuance of warning letters and the initiation of administrative sanctioning proceedings. 

In a note, CVM highlighted the importance of regulated entities always being aware of the regulatory requirements related to offers distributed with restricted efforts, in order to ensure the efficiency of the capital market and avoid possible sanctioning actions.