The Brazil Securities Commission (CVM) suspended an adjudication concerning alleged fraudulent securities transactions and failures involving credit ratings, lead intermediaries and fiduciary administrators after substitute Director Felipe Claret da Mota requested additional review. Rapporteur Marina Copola had voted to impose fines on 12 companies and individuals, acquit three respondents and terminate proceedings against a dissolved credit rating agency, but the commission has not reached a final decision. For fraudulent market operations, Copola proposed fines of BRL 2.72 million each for Ano Bom Incorporação e Empreendimentos and KL Partners, BRL 1.36 million each for Alexandre Klabin and Ricardo de Oliveira Barbosa, BRL 255,000 for Alexandro Luis Pin and BRL 300,000 for Trustee Distribuidora. She voted to acquit 55 Empreendimentos, Fornax Consultoria Empresarial and Fábio Antonio Garcez Barbosa of the same charge. Proposed fines for supervisory and intermediary failures ranged from BRL 50,000 to BRL 200,000, while Argus Classificadora de Risco de Crédito’s liability was deemed extinguished following its dissolution. Director Igor Muniz will present his vote after the case returns.
Brazil Securities Commission suspends enforcement ruling after rapporteur proposes fines for market fraud and control failures
The Brazil Securities Commission suspended an enforcement ruling after its rapporteur voted to fine 12 companies and individuals for market fraud and failures involving intermediaries, fiduciary oversight and credit ratings. The proposed penalties include fines of up to BRL 2.72 million per respondent, but no final decision has been reached.