ForecastingStocks

In Brazil, the securities market is regulated by the Comissão de Valores Mobiliários (CVM). The activity of professionally recommending securities — publishing analyses, reports, opinions and recommendations about investments — is governed by specific CVM rules, historically associated with CVM Resolution 20 (which replaced the older Instruction 598) covering the activity of the securities analyst (analista de valores mobiliários).

The core idea

Under the framework, a person who, as an occupation or profession, issues reports, analyses or recommendations about securities to the public must be accredited / authorised — typically registered with the CVM and certified through an accrediting entity (in practice, APIMEC). The rules impose duties around:

Qualification — you must be certified to do it.
Conduct and independence — act in good faith, with diligence.
Conflict-of-interest disclosure — you must reveal whether you hold the assets you talk about, whether you are paid by anyone connected to them, and any other interest that could bias the recommendation.

Why disclosure is the heart of it

Recall the incentive problem from Chapter 1: a provider paid by broker rebates profits from your trading regardless of your results. Brazilian rules attack precisely this — an authorised analyst must disclose such conflicts so the audience can weigh the recommendation honestly. An anonymous Telegram channel pushing "the next 10x" discloses nothing and answers to no one.

The disclaimer that matters here

This lesson describes the framework in general, educational terms. CVM rules change, resolution numbers and certification requirements evolve, and the precise scope depends on what exactly someone is doing. Verify the current rules directly with the CVM and seek qualified legal advice before relying on any of this — this is education, not legal advice.