The Brazil Securities Commission (CVM) issued decisions in three administrative sanctioning proceedings, including unanimous fines for front running, and resumed two other cases that had been paused following review requests. In the front running case involving trades on B3 against investment funds managed by BB Gestão de Recursos DTVM S.A. between January 2016 and June 2020, the CVM’s Board unanimously fined Marcelo Costa da Cruz, Maurício Costa da Cruz and Noemi Mitsiko Nagasawa BRL 2.3 million each for non-equitable practice (front running). In a separate case concerning alleged fraudulent operation in the management and allocation of resources of the Cais Mauá do Brasil Infraestrutura private equity fund, a dissenting review vote proposed fines of BRL 4,749,161.11 each for Finance Moinhos Assessoria e Consultoria Empresarial Ltda. and ICLA Consultoria S.A., and BRL 2,374,580.55 each for several individuals, while proposing acquittal for two others, after which proceedings were again suspended following a further review request. In the independent audit case relating to the 2016 and 2017 financial statements of Osasco Properties Fundo de Investimento em Participações Multiestratégia, the Board unanimously found the charge inadmissible as to one provision and acquitted BDO RCS Auditores Independentes SS and its responsible technical partner of the remaining alleged breach. The individuals fined for front running may appeal to the National Financial System Appeals Council, with suspensive effect. The fund-related case remains pending due to the additional request for review.

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