Research shows that CVM appeals judged by Conselhinho fell by 56% in 2023
The number of convictions analyzed by the appeals body rose from 185 in 2022 to 212 in 2023. In only 6% of the conducts did the Council completely reverse the CVM's decision, turning it into an acquittal.

FGV Direito SP's Center for Financial and Capital Market Studies (MFcap) has released the report CRSFN Figures in CVM Cases: Enforcement in the Brazilian Capital Market, in which it analyzes the activities of the CRSFN (Appeals Council of the National Financial System), known as Conselhinho, an appeals body designed to review decisions by the Central Bank and the CVM.
The survey analyzed the Little Board's review work in relation to the decisions made by the CVM in 2023. In that year, 48 decisions were submitted to the Council, compared to 85 in 2022, representing a drop of 55.81%.
The same was not true of the number of appellants and convictions. In 2023, the appeals involved 153 appellants and challenged 212 convictions by the CVM, of which 168 were of individuals and 44 of legal entities.
In 2022, the appeals involved 141 appellants and challenged 185 convictions, of which 151 were handed down to individuals and 34 to legal entities. The year 2023 therefore saw fewer appeals, but a greater number of convictions challenged.
Considering the methodology used by MFCap to calculate the results, the difference between the number of convictions and appellants is explained by the fact that some appellants were convicted - and appealed - for more than one conduct (charge) in the same case.
The analysis carried out by MFCap on the subjects of the judgments shows that most of the 212 conducts analyzed and which were the subject of the appeals refer to market illicit acts (37%), followed by corporate issues (22.4%), failure to provide services (15.6%), financial statements (8.9%), information problems (8.9%), public offerings (2.6%) and portfolio management (2.6%), and others (2.1%).
Although it did not deal with the same cases decided at first instance (it is not always possible for the Council to assess a decision handed down by the CVM in the same year), as would be expected, the thematic predominance in the CRSFN reflects what can be seen in the 72 administrative sanctioning cases judged by the CVM throughout 2023, in which information problems (12%) and market illicit acts (17.6%) also appeared as a representative percentage of the accusations.
Suggesting a certain alignment of understandings between the different bodies, the data for 2023 shows that the trend observed in the previous year continues, with the CRSFN remaining the body with a low rate of reform of first instance decisions, at least with regard to cases originating from the CVM.
In less than 6% of the cases there was a total overturn (total upholding of the appeal, with the appellant being acquitted). In 17% of the cases analyzed, the appeal was partially upheld (i.e. cases in which only part of the decision was changed, such as reducing the amount of the fine).
In approximately 75.9% of the decisions of the second instance administrative body, the CVM's decision was not reformed and was upheld as originally issued. Demonstrating a certain stability in the results, the original decision was also upheld in 65% of the CVM convictions analyzed in 2022. That year, 25.9% of the appeals were partially upheld, 6.5% were not upheld and only 2.2% of the decisions were completely overturned.
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