Master Case: PT proposes expanding Central Bank oversight of funds.

247 -The Workers' Party (PT) caucus in the Chamber of Deputies has introduced a bill that alters the model for supervising investment funds in Brazil. The initiative comes after the scandal involving Banco Master and seeks to allow the Central Bank (BC) to exercise prudential oversight over funds considered to pose a systemic risk.

The proposal, according to the column CapitalAccording to O Globo, this formalizes an idea previously defended by the Minister of Finance, Fernando Haddad. Bill No. 46/2026 was presented this Monday by Congressman Rubens Pereira Júnior (PT-MA) and expands the role of the Central Bank in supervising the financial system.

Proposal expands Central Bank's scope of action.

The text establishes that the Central Bank will supervise investment funds that, due to their size, leverage level, complexity, or interconnection with the financial system, are classified as systemically risky or para-banking in nature. These criteria will be defined by the National Monetary Council.

According to the draft, the Central Bank may exercise "prudential control and oversight over investment funds that, due to their assets, leverage, complexity, or interconnection with the financial system, are classified as systemically risky or of a para-banking nature."

Prudential oversight and limits of the Central Bank's actions.

The proposal makes it clear that the Central Bank's actions will not replace the role of the Securities and Exchange Commission (CVM), currently responsible for overseeing investment funds. The text defines that the Central Bank's competence will be restricted to "aspects of solvency, liquidity, and credit risk."

According to the bill, the CVM (Brazilian Securities and Exchange Commission) will remain responsible for overseeing the conduct, transparency, and functioning of the capital market, avoiding overlapping responsibilities between the two bodies.

Relationship between the Central Bank and the CVM (Brazilian Securities and Exchange Commission)

When Fernando Haddad proposed expanding the Central Bank's role, the CVM's technical staff expressed concern and warned of potential regulatory conflicts. In response, the bill explicitly provides for institutional cooperation between the Central Bank and the commission.

The text establishes that oversight should occur in a coordinated manner, while preserving the legal competencies of each regulatory body.

In defense of the "Twin Peaks" regulatory model.

In the project's justification, Representative Rubens Pereira Júnior argues that the proposal does not remove any powers from the CVM (Brazilian Securities and Exchange Commission) and defends the adoption of a regulatory model already used in other countries. "It is not about emptying the CVM's competence – which maintains primacy over market conduct and investor protection – but about instituting a 'Twin Peaks' model of regulation, where the Central Bank of Brazil monitors solvency and systemic risk," stated the congressman.