Regulatory Alerts2014-10-25
CVM Resolution No. 372 of January 23, 2001
The Brazilian Securities and Exchange Commission (CVM) issued Resolution No. 372 to prohibit the irregular hiring of unregistered brokers in the securities market. The resolution mandates that distribution system members and fund administrators immediately terminate contracts with unauthorized agents and refrain from hiring them for business brokering or client acquisition activities. Non-compliance with this directive subjects violators to a daily fine of R$500.00, in addition to other applicable penalties for prior infractions.
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