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New sanctions regime of the Central Bank and the Securities and Exchange Commission

On November 14, 2017, Law 13,506 of November 13, 2017 was published, which provides for the sanctioning administrative process in the sphere of the Brazilian Securities and Exchange Commission (CVM) and the Central Bank of Brazil (BACEN).

Law 13,506 / 2017 is a breakdown of Provisional Measure (MP) 784/2017, which expired after being widely discussed in the National Congress this year. The final version of the project retained most of the MP’s text, with specific changes referring, for example, to the specific rules on the payment order of creditors in case of extrajudicial liquidation or bankruptcy; to the requirement that the decision in administrative sanction process in the scope of the BC be taken by a collegiate body; the prohibition of the conclusion of an undertaking in case of serious infraction; and to change the name of the leniency agreement, to be called an administrative agreement in the process of supervision.

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