CVM cancels registrations of two publicly held companies due to informational noncompliance

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CVM cancels company registrations

Highlights

On June 21, 2024, CVM canceled the registrations of BLUE TECH SOLUTION EQI S.A. and MASSA FALIDA DE TECNOSOLO ENGENHARIA S.A. due to informational noncompliance.
After being suspended for more than 12 months, both companies lost the right to trade securities in any regulated markets in Brazil.
The cancellation does not eliminate previous responsibilities of the companies, controllers, and administrators, keeping them subject to accountability for past infractions.

This article was translated from the original. Read the original version by our correspondent here.

Cancellation after prolonged suspension

According to the CVM, the Securities and Exchange Commission reported, through the Superintendence of Corporate Relations, that the registrations provided for in Article 21 of Law 6,385 were officially canceled for the companies BLUE TECH SOLUTION EQI S.A. and MASSA FALIDA DE TECNOSOLO ENGENHARIA S.A. The technical department points to the lack of information provided to the authority and states that the decision comes after the registrations remained suspended for more than 12 months.

With the cancellation, the companies can no longer have securities issued by them admitted for trading in regulated markets. This restriction covers the organized over-the-counter market, the stock exchange, and also the unorganized over-the-counter market.

Regulatory effects for the companies

The CVM clarifies that the removal of registration does not eliminate any responsibilities prior to the cancellation. Thus, the companies, their controllers, and administrators remain subject to liability for possible infractions committed before the loss of registration.

The decision reinforces the regulatory requirement for regular submission of information to the market, a central point for the continued supervision of publicly held companies by the authority. In the Brazilian market, this type of measure limits companies’ access to the regulated trading environment and preserves the transparency standards required of issuers.

In our previous publication on the limitations of resources of the CMVM in Portugal, we highlighted the regulator’s warnings about the loss of operational flexibility in the context of new European requirements. We explained that additional data requests, recruitment pressure, and the need to invest in Artificial Intelligence increase costs and make modernization and talent retention more difficult, affecting supervisory capacity.

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