SUSEP launches public consultation on administrative sanctioning regime that repeals CNSP Resolution No. 393/2020

The deadline for submitting suggestions is December 07, 2025.

On November 17, 2025, the Superintendence of Private Insurance (“SUSEP”) issued Public Consultation Notice No. 11/2025, which seeks to obtain market feedback on the draft CNSP Resolution, aiming to repeal and replace CNSP Resolution No. 393, dated October 30, 2020. The measure aims to update the provisions regarding the administrative sanctioning regime.

The sanctioning regime subgroup, which integrates the working group instituted by SUSEP Ordinance No. 8,371/2025, drafted the proposed regulatory amendment to regulate Supplementary Law (“LC”) No. 213/2025. Among other aspects, LC No. 213/2025 provides for cooperative insurance companies, mutual asset protection operations, terms of commitment, and the administrative sanctioning regime within the scope of SUSEP.

Among the main changes introduced by the draft resolution, we highlight the following:

1. Increased fine amounts (Art. 78, IV): references for fines have been updated in line with the new parameters introduced by Supplementary Law No. 213/2015 and may now reach BRL 35 million, or be calculated as twice the contract value, three times the undue advantage, or the damage caused.
2. Expanded scope of the regulation (Art. 1): in addition to the activities already provided for, the regulation now encompasses mutual asset protection, operation registration, the Open Insurance System, fiscal management, intervention, liquidation, and stipulation.
3. New criteria for not initiating sanctioning proceedings (Art. 8, § 1): the draft resolution upholds the possibility of not initiating sanctioning proceedings in the event of conduct with low severity, while providing more detailed objective criteria for assessing harm to the protected legal asset and defining the main categories of such assets (such as market stability, institutional solvency, consumer protection, among others).
4. Systemic procedural rules (Art. 24 to 31): the draft resolution establishes that acts and communications must preferably be carried out electronically, and subpoenas must be issued via the SEI system. Additionally, the draft resolution establishes new rules for counting deadlines in the event of system unavailability.
5. Extended disqualification period (Art. 78, VII): the maximum disqualification period has increased from 10 to 20 years.
6. SUSEP’s sanctioning powers expanded (Art. 78, II): the draft resolution introduces broader precautionary measures, including the possibility of suspending registrations, accreditations, products, and services; imposing restrictions under penalty of fines; halting the operations of unauthorized entities; and issuing market notifications.
7. New activities and specific offenses included (Art. 78): the draft resolution introduces infractions related to Open Insurance, mutual asset protection, and operation registration, including specific penalties for non-compliance with technical standards, as well as cybersecurity and governance requirements.
8. Expanded criteria for determining sanctions (Art. 86):
   the draft resolution incorporates factors such as the extent of damage to the national economy, the impact on solvency, the seriousness of the conduct, the magnitude of the amounts involved, the duration of the infraction, and any recurrence when determining sanctions.
9. Restructured infractions and corresponding fines: the draft resolution includes an annex containing a table of reference amounts per group of infractions, with the most serious listed as follows:

• Operations without proper authorization (in the amount of the guarantee involved in the irregular operation);
• Audits without assurance of the auditor’s independence (BRL 3 million), inept (BRL 4 million), or fraudulent (BRL 10 million);
• Irregular operations in open supplementary pension fund (BRL 2 million);
• Falsification or misrepresentation of information to SUSEP (BRL 1.5 million), assignment or offer of reinsurance or retrocession in breach of the legislation (BRL 2 million for assignments and BRL 1.5 million for offers), among others.

Finally, regarding the procedural deadlines for defenses, appeals, and discounted payments – among others established in Resolution No. 393/2020 –, these remain unchanged. Additionally, Art. 102 of the draft resolution fully repeals CNSP Resolution No. 393/2020.

Interested parties can submit their comments and suggestions to Public Consultation No. 11/2025 until December 07, 2025, through the Public Consultation System, in compliance with the guidelines available in the published notice. The documents relating to the public consultation are available in full on SUSEP’s website and can be accessed below:

• Public Consultation Notice No. 11/2025
• SUSEP’s Public Consultations

Demarest’s Insurance, Reinsurance, Health, and Private Pension team is monitoring the development of this public consultation and remains available to provide further clarifications.