Brazil Securities Commission acquits GRF Assessoria, time-bars Joesley Batista manipulation case and warns BRB board member

The Brazil Securities Commission’s Collegiate decided three administrative sanctioning proceedings, unanimously acquitting GRF Assessoria Ltda and its sole partner Guilherme Ricardo Fuhr of an alleged unauthorised securities offering, dismissing the Joesley Mendonça Batista market manipulation case as time-barred, and issuing a warning to Banco de Brasília S.A. board member Romes Gonçalves Ribeiro for a diligence failure in completing a board registration form. In the GRF matter, the Superintendence of Market and Intermediaries alleged an irregular public offering without prior CVM authorisation under Article 19 of Law 6,385. In the Joesley Batista case concerning alleged manipulation of JBS S.A. shares in April 2010 under CVM Instruction 08, the Collegiate, by majority, recognised the statute of limitations for the CVM’s punitive claim and closed the proceeding without a merits decision, despite a dissenting vote that would have imposed a BRL 150,000,000 fine. In the BRB case, the Superintendence of Corporate Relations alleged a conflict of interest and omissions connected to a relationship with a company treated as a competitor, as well as breaches of the duty of care under Articles 147 and 153 of Law 6,404 and Article 17 of Law 13,303; the Collegiate unanimously acquitted Ribeiro on the conflict and certain omission allegations, but by majority issued a warning for failing to ensure the 2022 to 2024 board registration form was completed fully, clearly and accurately.