Brazil Securities Commission fines Sultepa investor relations director and Intra DTVM while clearing PwC audit firm in separate case

The Brazil Securities Commission (CVM) concluded three sanctioning proceedings, imposing fines on an issuer’s investor relations director and a securities dealer and fund administrator, while unanimously acquitting PricewaterhouseCoopers Auditores Independentes Ltda. and its responsible partner in a case alleging breaches of independent audit standards. In one case, the CVM unanimously fined Sergio Mattos, investor relations director of Construtora Sultepa S.A. (under judicial reorganisation), BRL 200,000 for allegedly failing to provide shareholders with the list of shareholder addresses within three business days of a request, as required under the Brazilian Corporations Law and CVM Resolution 81. In another, the CVM unanimously acquitted PwC and Marcos Paulo Putini of alleged non-compliance with NBC TA 540 (R2), NBC TA 200 (R1) and NBC TA 260 (R2), pursued as an infraction of CVM Resolution 23. In the third, Intra DTVM Ltda. was unanimously fined BRL 1.2 million for delays or non-delivery of mandatory periodic information for investment funds it administers under Instruction CVM 555; it was acquitted, by majority, of an alleged breach of the duty of diligence under the same instruction after a tie was resolved in favour of the respondent pursuant to CVM Resolution 45, with one director dissenting and supporting an additional BRL 300,000 fine. The sanctioned parties may appeal to the National Financial System Appeals Council, with suspensive effect.