Otto Lobo Ousts Seven CVM Superintendents and Reinstates Chief of Staff

Overview

• Otto Lobo has taken office as president of Brazil’s securities regulator, the Comissão de Valores Mobiliários (CVM), following a decree published in the official gazette.
• On assuming the role he exonerated seven superintendents and several advisors, including the agency’s acting superintendente geral, and removed the head of economic analysis from his post.
• Lobo reinstated Maurício Bulcão as chief of staff after Bulcão was dismissed in April, while the CVM said the removed officials remain on the agency’s permanent payroll and that new appointees will be announced soon.
• In his first collegiate session as president Lobo resumed the long-running disciplinary case against former IRB executives Fernando Passos and José Carlos Cardoso, but commissioners split on key votes and the panel suspended judgment after a request for review.
• The moves leave the CVM’s senior leadership and the outcome of a major 2020 enforcement probe in flux, a situation that could shape future regulatory decisions and investor confidence as replacements and procedural reviews play out.