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CVM institutes a fine of R $ 50 thousand per day against the Crowdfunding platform that used the agency's slogan


Photo: CVM / Disclosure

The Urbe.Me de Crowdfunding company received a Stop Order from the Brazilian Securities and Exchange Commission (CVM) for working with loan and financing transactions between people and using the autarchy symbol to attract investors. Urbe.Me will have to limit itself to Crowdfunding activities and remove the CVM slogan from its website under penalty of a daily fine of R $ 50 thousand.

The agency issued on Friday (19) a warning to investors that this company has led people to error with the use of the CVM logo and pointed out that the company and its partner Lucas Rocha Obino Martins have been irregularly offering loan and financing operations .

“The Municipality identified that the website makes offers in the form of loan and financing transactions between people through an electronic platform, an activity regulated by the Central Bank of Brazil”.

According to the CVM's decision, Urbe.Me Serviços Desenvolvimento Urbano and Lucas Rocha Obino Martins are prohibited from: “making investment offers different from those authorized by CVM Instruction 588 in the website environment dedicated exclusively to their activity as an electronic platform for participatory investment ”.

CVM Rules

The question is simple. According to Normative Instruction 588/17, small businesses are exempt from registration with the local authority to publicly offer securities through Crowdfunding platforms.

This, however, has a caveat. These companies allowed by the CVM to act as an electronic platform for participatory investment cannot operate with loans between people.

"This Instruction does not regulate the activity of loans granted by individuals to individuals or legal entities through the worldwide computer network, program, application or electronic means, which does not involve the issuance of securities".

The company and its partner will also not be able to offer the crowdfunding offers allowed by this normative instruction outside of “an environment that is not exclusively dedicated to its activity”.

The CVM logo should also stop being used “in an environment that is not exclusively dedicated to its activity as an electronic platform for participatory investment”.

Forbidden to use CVM symbol

In Deliberation 858, the CVM explained that Urbe.Me, like any other company, is prohibited from “reproducing and using the CVM's acronym, logo and slogan, which may mislead or confuse third parties”. The rule is contained in a decision issued by the municipality in 2016.

The agency explained that any offer made by Crowdfunding platforms must be clear, objective and not go beyond this type of offer:

“An electronic platform for participatory investment should target a page on the world wide web, in Portuguese, with minimal information related to its offers in a section called 'Essential Information about the Public Offering', written in clear, objective, serene language, moderate and appropriate to the type of investor the offer is aimed at ”.

Fine and other sanctions

In view of this scenario, both the company and its managers will have to stop using CVM symbols and offer other investments other than Crowdfunding “in the environment of the page on the world wide web dedicated exclusively to its activity as an electronic platform for participatory investment” .

If they disobey the order, they will bear a daily fine of R $ 50 thousand. The municipality has not stipulated any ceiling for this fine, and may reach millionaire values ​​depending on the time that irregular activity lasts.

This is not the only sanction envisaged against the company. The CVM also affirmed that accountability will be determined for “infractions already committed, with the imposition of the appropriate penalty”.

According to the Securities Law, the company may be prohibited for up to 20 years from practicing certain activities or operations that depend on authorization or registration with the CVM. This, however, will depend on the outcome of the Sanctioning Administrative Process.

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