The Federal Government enacted a law revising the framework of the Inspection Fee of the securities market, levied by the Securities and Exchange Commission of Brazil (CVM) as a fund for its supervision activities.
The Federal Government sanctioned Law n.º 14.317/2022, amending Law n.º 7.940/1989 in order to revise the framework that establishes the Inspection Fee of the securities market, levied by the Securities and Exchange Commission of Brazil (CVM) as a means to fund its supervision activities. The new law stems from Provisional Measure n.º 1.072/2021, which switched the levying scheme from a quarterly to an annual charge, due every May.
According to CVM, the new law is designed to update the framework of the Inspection Fee, which dated back to 1989, adjusting its charge to the current composition of the securities market, comprised of various new players. It is also intended to provide more equity to the Inspection Fee, reframing the levying scheme in a revenue-neutral manner, reducing the charge from natural persons and small-scale companies operating in the distribution of securities, while expanding the number of contributors, hence maintaining an adequate revenue level for CVM.
Concerning the revised Law n.º 7.940/1989, article 3 provides the list of contributors subject to the Inspection Fee, while articles 4 and 5 provide the annual levying scheme, and Annexes “I” to “IV” detail the charge by each type of contributor, specific operation, and corporate equity level. Furthermore, concerning Law n.º 14.317/2022, article 5 revoked specific provisions related to the Inspection Fee from five other laws, and article 6 determined that the financial effects of the new law are to be carried out retroactively, starting from January 1, 2022.
