What is the CVM license?
A simple explanation of the regulator, the strength of the license, and what to check before opening an account.
The Comissão de Valores Mobiliários, or CVM, is Brazil's national securities regulator and one of the most important authorities for anyone researching investment firms, securities intermediaries or capital-market services in Brazil. Its remit covers market conduct and regulation of intermediaries, secondary markets, equities, derivatives and other activities governed by Brazilian securities law.
International investors can use CVM's official participant-registration systems to check whether a financial firm appears in the regulator's records and to review the category under which the entity operates. This is particularly useful when a broker uses an international brand name that differs from the legal company named in its client agreement.
CVM and the Central Bank of Brazil share regulatory responsibilities in some areas of financial intermediation. As a result, checking only one regulator may not provide the full picture. Users should identify the exact product or service, verify the contracting entity and check both CVM and BACEN where the firm's activities cross regulatory boundaries.
