Brazil President Lula Taps Career Regulator for CVM Directorate Amid Controversy
Brazilian President Luiz Inácio Lula da Silva has nominated Antonio Carlos Berwanger, a career civil servant, to fill the final vacant position on the board of the Securities and Exchange Commission (CVM). The nomination was sent to the Senate and published in the Official Gazette on Tuesday, May 4th. Berwanger must undergo a confirmation hearing in the Senate's Economic Affairs Committee and receive approval from the full Senate before assuming the role.
Formally, the appointment is to replace Otto Lobo, whose term as director concluded in December 2025. Lobo, after leaving his directorship, was appointed by President Lula to head the CVM in June and returned to the regulatory body as its president. Igor Muniz, a lawyer, also joined the CVM directorate at that time. If Berwanger is confirmed, the five-member board will be at full strength.
This nomination follows controversy surrounding Otto Lobo's presidency. Questions were raised about decisions he made while acting as interim CVM president in the second half of 2025, particularly concerning Ambipar and funds linked to Banco Master. The CVM's technical area had determined that these funds acted in concert with Ambipar's controller in purchasing shares, necessitating a public tender offer (OPA) to minority shareholders. The CVM's board vote was tied, and Lobo, as interim president, cast the deciding vote against the OPA requirement. The Federal Specialized Prosecutor's Office at the CVM questioned this procedure, citing potential weakness in the decision, while critics suggested it benefited Banco Master. Lobo denied any favoritism during his Senate confirmation hearing, stating the law was clear on not imposing an OPA against a non-controller and that this part of the decision was unanimous. Despite the controversy, the Senate approved Lobo's appointment.
Upon taking office as president, Lobo initiated significant personnel changes, replacing the heads of six superintendencies and the chief superintendent. These officials retained their positions within the CVM but left their leadership roles. Antonio Carlos Berwanger has been with the CVM since 2005, currently serving as Superintendent of Market Development, overseeing regulations for publicly traded companies, investment funds, and capital markets. He has held various roles, including inspector and head of sanctioning processes, and managed the Norms Improvement department from 2011 to 2015. Berwanger, who holds degrees in Economics and Law and a Master's in Regulation Law, is recognized internally as an expert in innovation and digital assets. In May, he was among 27 CVM officials who signed a statement advocating for a career civil servant to be appointed to the board, arguing it would preserve regulatory memory and decision-making stability.
The nomination of Antonio Carlos Berwanger to the CVM director position, following a period of controversy surrounding Otto Lobo's interim presidency and subsequent appointment, highlights the ongoing tension between political appointments and the value of institutional memory within regulatory bodies. The CVM's internal structure and decision-making processes, particularly concerning market oversight and potential conflicts of interest, are under scrutiny. The debate over Lobo's tie-breaking vote in the Ambipar case underscores the critical importance of transparent governance and clear procedural adherence in financial regulation. Berwanger's background as a career civil servant, supported by internal CVM staff, suggests a potential shift towards prioritizing technical expertise and regulatory continuity. This move could aim to bolster the CVM's credibility and stability, especially as the financial landscape evolves with technological innovation and new asset classes. The long-term implications will depend on the CVM's ability to navigate these internal dynamics while maintaining robust enforcement and adapting to future market challenges.
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