The Brazil Securities Commission (CVM) reported that its board unanimously imposed fines totaling BRL 2.925 million on four parties for securities fraud and failures of diligence at a Sept. 1, 2026, hearing. The board also began considering allegations that KPMG Auditores Independentes Ltda. exceeded the permitted period for auditing two funds, but suspended that proceeding without a final decision. Brazcarnes Participações S.A. and Giovani Laste were fined BRL 1.5 million and BRL 750,000, respectively, for conducting a fraudulent transaction in the securities market. Interativa Investimentos Ltda. and Jorge Farah Elias received fines of BRL 450,000 and BRL 225,000, respectively, for breaching their duty of diligence when acquiring assets for the BRA1 FIRF fund. The sanctioned parties may appeal to the National Financial System Appeals Council, with suspensive effect. The KPMG case concerns allegations that the firm provided independent audit services to BB Joatinga Fundo de Investimento Multimercado Crédito Privado and Opus One Fundo de Investimento Multimercado for more than five consecutive financial years, contrary to Article 31 of CVM Resolution 23. Reporting Director Marina Copola voted to impose a warning. The hearing was then suspended following Director Igor Muniz’s request for further review, leaving the outcome pending.
Brazil Securities Commission imposes BRL 2.925 million in fines for securities fraud and diligence failures
The Brazil Securities Commission reported BRL 2.925 million in fines imposed unanimously at its Sept. 1, 2026, hearing, with Brazcarnes Participações and Giovani Laste sanctioned for securities fraud and Interativa Investimentos and Jorge Farah Elias for diligence failures involving the BRA1 FIRF fund. The sanctioned parties may appeal with suspensive effect. A separate case alleging that KPMG exceeded the five consecutive financial year limit for auditing two funds remains pending after a director requested further review.