Atlas · Capital markets
Imprisonment penalty for the misuse of inside information
AnswerThe imprisonment penalty for the misuse of inside information is 1 to 5 years, plus a fine of up to 3 times the amount of the illicit advantage obtained as a result of the crime.
Reviewed on 2026-10-02 · next review 2027-04-02
Data
| Who | Criterion | Consequence | Source | Data date |
|---|---|---|---|---|
| Agent who uses inside information | Using relevant information not yet disclosed to the market, capable of providing undue advantage | Imprisonment penalty, from 1 to 5 years, and a fine of up to 3 times the amount of the illicit advantage obtained | Lei 6.385/1976, art. 27-D | 14/12/2017 (redação da Lei 13.506) |
| Who passes on confidential information | Passing on confidential information related to a relevant fact obtained through an office or relationship | Incurs the same penalty (imprisonment of 1 to 5 years and a fine of up to 3 times the illicit advantage) | Lei 6.385/1976, art. 27-D, § 1º | 14/12/2017 (redação da Lei 13.506) |
Data consulted on 02/10/2026.
Basis
- Lei n.º 6.385/1976 (Planalto, in Portuguese): art. 27-D establishes the crime of misuse of inside information, providing for a penalty of imprisonment from 1 to 5 years and a fine, and § 1º extends the same penalty to anyone who passes on the confidential information.
How it applies
The typical conduct consists of using relevant information not yet disclosed to the market, which the agent must keep confidential, to obtain an undue advantage through the negotiation of securities in their own name or on behalf of third parties. The same penalty applies to anyone who passes on confidential information related to a relevant fact obtained by reason of office, position in an issuer, or a commercial, professional, or trust relationship. The custodial penalty is imprisonment from 1 to 5 years, combined with a fine of up to 3 times the amount of the illicit advantage obtained.
Limits
- This sheet exclusively covers the imprisonment penalty and fine provided for in article 27-D of Lei 6.385/1976 for the crime of misuse of inside information and its paragraph 1.
- Subsequent changes to the legislation must be checked on the Planalto website before any decision.