Brazil’s Top Court Restores CVM Fee Funding and Orders 20-Day Oversight Plan

Overview

• Supreme Court minister Flávio Dino barred the Treasury from keeping the CVM’s market supervision tax and required the government to deliver a recovery plan within 20 days.
• The ruling directs 70% of the fee revenue back to the CVM’s mission, with the Union limited to 30% under the revenue unlinking rule.
• Justice Gilmar Mendes praised the decision and said shoring up the regulator is key to reducing gaps that enable financial fraud.
• The CVM operates with only two of five directors in place, and its workforce fell from 555 employees in 2015 to 398 in 2025.
• Large transfers of fee income to the Treasury, including R$831 million in 2025, strained oversight even as markets moved about R$55 trillion and funds grew to roughly 31,500.