The Brazil Securities Commission (CVM) has approved two settlement agreements (Termo de Compromisso) to close administrative sanctioning proceedings involving an issuer investor relations director and two equity fund managers, with payments to the CVM totalling BRL 1.77 million. In the case against José Ricardo Elbel Simão, investor relations director of AES Brasil S.A. (now Auren Participações S.A.), the agreement provides for a BRL 330,000 payment. The proceeding concerned alleged failures to disclose information on the hiring of financial advisers and a potential exit of the company’s controlling shareholder following a possible leak in a news item published on 29 January 2024, under a possible breach of Article 157(4) of Law 6,404 together with the sole paragraph of Article 6 of CVM Resolution 44. In the separate case, fund managers Francisco Giffoni Meirelles de Andrade and Michel Shirozono agreed to pay BRL 1.44 million in total, split equally at BRL 720,000 each, to settle allegations of price manipulation as managers of an equity investment fund (Fundo de Investimento em Ações), under possible breaches of Articles 2 and 3 of CVM Resolution 62. In both matters, the CVM’s Federal Attorney’s Office found no legal impediment and the Term of Commitment Committee recommended acceptance, which the CVM board followed.
Brazil Securities Commission (CVM) 2025-11-11
Brazil Securities Commission accepts settlement agreements totalling BRL 1.77 million in issuer disclosure and price manipulation cases
The Brazil Securities Commission (CVM) approved settlement agreements totaling BRL 1.77 million to resolve proceedings against an issuer investor relations director and two equity fund managers. José Ricardo Elbel Simão agreed to pay BRL 330,000 for alleged disclosure failures, while Francisco Giffoni Meirelles de Andrade and Michel Shirozono will pay BRL 720,000 each for alleged price manipulation. The CVM board accepted the agreements following recommendations from the Term of Commitment Committee.