CVM Nominee Otto Lobo Faces Pushback as Staff Seek Career Director and TCU Prosecutor Alerts Senate

Overview

• Nineteen CVM superintendents issued a joint note urging that the regulator’s remaining board seat be filled by a career civil servant, citing TCU ruling 3252/2020 to safeguard continuity and regulatory memory.
• The federal government nominated Otto Lobo on January 8 to permanently lead the CVM, and he must still undergo a hearing before the Senate Economic Affairs Committee.
• On January 12, the federal prosecutor at the audit court (MPTCU) asked the TCU president to alert senators about what it called controversial decisions by Lobo that favored Banco Master.
• Critics point to Lobo’s actions in an Ambipar case, where he reopened a vote and used a tie-breaking vote to block a mandatory takeover offer, and to his role in the Brazil Realty FII matter, which later ended unfavorably to Master owner Daniel Vorcaro after the bank’s liquidation.
• The CVM’s technical corps is largely critical of Lobo’s elevation, though superintendent Marco Velloso publicly backed him on LinkedIn, while market reactions are split with Abrasca supportive and Instituto Empresa expressing concern.