CVM warns that digital influencers can be punished for indicating investments without the authorization of the municipality
The Securities Commission, CVM, highlighted in its portal that influencers are not professional analysts and, therefore, their analysis may contain vices that end up benefiting the influencers themselves, that is, indicate a purchase or sale that may favor them.
This applies as much to channels focused on traditional investment as those that indicate Bitcoin and cryptomoedas.
„With the increasing popularization of social networks and the greater interest of the general public in the securities market, especially in shares of publicly-held companies, the Superintendence of Institutional Investor Relations of the Brazilian Securities Commission (SIN/CVM) clarifies its interpretations of the performance of people in social networks in the supposed provision of professional services that depend on registration with the CVM, whether influencers or not,“ said the CVM.
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Thus, the technical area of the Municipality Bitcoin Bonanza highlights that a securities analyst is a natural or legal person who, on a professional basis, prepares analysis reports intended for publication, disclosure or distribution to third parties, even if restricted to clients.
Thus, the expression „analysis report“ means any text, follow-up reports, studies or analysis on specific securities or on specific securities issuers that may assist or influence investors in the investment decision making process (art. 1, § 1 of CVM Instruction 598).
„We use the term ‚on a professional basis‘ to emphasize that only persons acting in this capacity require accreditation for the exercise of the activity of securities analyst. The professional character is characterized, for example, when there is a constancy in the disclosure of analyses and receipt of remuneration, even if indirect“ – explains Daniel Maeda, Superintendent of Institutional Investor Relations (SIN/CVM).
Still according to CVM, many digital influencers use notices such as „this is not an investment recommendation“, „these are only personal opinions“ or with similar content in their texts and videos.
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Even so, the technical area of CVM emphasizes that these expressions are not sufficient to disfigure the service of securities analysis, in case there is evidence of professional exercise of the activity.
„The language used is one of the parameters evaluated to check whether there is professional service provided. It is clear that more assertive or appealing speeches prove the attempt to influence and induce investors“ – Rafael Custódio, manager of GAIN, linked to SIN.
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Thus, the technical area of CVM alerts that it is an administrative infraction to use social networks to express itself on securities, even if on a non-professional basis, with the purpose of creating artificial conditions of demand, supply or price of securities, price manipulation, fraudulent operations and the use of unfair practices, in an attempt to gain advantage for itself or for third parties.
The violation is provided for in CVM Instruction 8, and those responsible will be subject to warnings, fines and other penalties provided for in Article 11 of Law 6385/79.