Dino rejects part of the government's plan to restructure the CVM

Minister Flávio Dino, of the STF (Supreme Federal Court), approved this Friday (12) only part of the emergency plan presented by the federal government to restructure the activities of the CVM (Securities Commission).

One of the main points criticized by the minister was the productivity target set by the government. The plan established the trial of only 16 cases over seven months, a number that, according to Dino, is lower than the performance recorded by the authority even in periods of budgetary restrictions. In the decision, Dino classified the target as "inadmissible" and ordered the Executive to present adjustments within five days.

"Given this situation, I consider it unacceptable and unreasonable that a task force financed by a substantial budget increase determined by this Court, proposes to deliver lower productivity than that achieved by the Autarchy in periods of marked structural crisis and vacancy of positions", he stated.

The staffing situation was also questioned. Dino considered the proposed measures to rebuild the CVM's workforce insufficient and ordered the government to present a detailed schedule for hiring new analysts and for reorganizing the distribution of positions within the agency.

To face the backlog of cases, the minister authorized joint efforts and the payment of overtime to employees. The goal is to significantly reduce the CVM's procedural liabilities by the end of 2026.

The decision establishes deadlines ranging from five to 30 days for the government to correct the flaws identified and present new goals. Dino warned that failure to comply with the determinations could result in the authorities involved being held personally liable.

In addition, the minister ordered the CVM to make an immediate effort to analyze around 1,500 processes that remain without initial screening, awaiting action from the authority.

In the same decision, however, Dino also validated part of the initiatives foreseen in the emergency plan. Among the measures approved are the use of artificial intelligence tools to expand supervision and modernize internal procedures, updating the CVM's technological systems and strengthening the exchange of information with the Central Bank and Coaf (Financial Activities Control Council).

The minister also agreed to the creation of a permanent working group between the CVM and the Central Bank, with the aim of improving coordination between the bodies and preventing market agents from taking advantage of oversight gaps to commit irregularities.

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Source: CNN