Brazil Securities Commission accepts three settlement offers totaling BRL 3.757 million, rejects one in XP case

The Brazil Securities Commission reviewed settlement proposals in three administrative sanctioning proceedings and accepted agreements with XP Investimentos CCTVM S.A. and Guilherme Dias Fernandes Benchimol, Pedro Carvalho de Mello, and Equatorial S.A. executives Augusto Miranda da Paz Júnior and Leonardo da Silva Lucas Tavares de Lima. The accepted settlements total BRL 3.757 million. The board rejected a separate proposal from Ricardo de Oliveira Barbosa in the same XP-related proceeding. In the XP case, the settlement requires XP to pay BRL 1.08 million and Benchimol BRL 405,000 over allegations that they failed to properly supervise investment agents linked to the broker. They must also provide, within 10 business days after publication of the agreement, proof of payment of court-awarded compensation to the investor of at least BRL 1,211,248.54, updated from Jan. 11, 2025, until the effective payment date. Barbosa's proposal was rejected because of the alleged seriousness of the case, which includes suspected fraudulent securities market transactions and unauthorized portfolio management, and because he is also accused in another CVM proceeding. In the Gafisa case, Carvalho de Mello agreed to pay BRL 1.7 million to settle allegations tied to the approval and oversight of a share buyback program and the approval of an investment program in other companies. In the Equatorial case, the two executives agreed to pay BRL 286,000 each, settling allegations that the 2021 reference form did not adequately disclose significant internal control deficiencies, the remediation measures taken or to be taken, the responsible areas, and expected deadlines.