Brazil Securities Commission opens BRB board member conflict-of-interest case as rapporteur proposes acquittals and a warning before session is suspended

The Brazil Securities Commission (CVM) has opened the judgment in an administrative sanctioning proceeding against Romes Gonçalves Ribeiro, a member of Banco de Brasília S.A.’s (BRB) board, over alleged conflicts of interest and related disclosure and diligence failures. The session was suspended after Director Otto Lobo requested additional time to review the case. The case was brought by the Superintendence of Corporate Relations (SEP) and concerns allegations that Ribeiro took a position in an entity considered a competitor to BRB, creating a conflict of interest, and that he failed to exercise due diligence by omitting information about a link to a competitor. Acting as rapporteur, CVM President João Pedro Nascimento voted to acquit Ribeiro on the alleged conflict-of-interest appointment and to acquit him on alleged omissions regarding his professional relationship with Wiz in the 2020/2022 Registration Form and in recusals stated at BRB board meetings, while voting to impose a warning for failing to ensure the 2022/2024 Registration Form was completed fully, clearly, and accurately. Director Marina Copola followed the rapporteur, while Director João Accioly agreed with the acquittals but dissented from the warning and voted for acquittal on the omission-at-appointment allegation. The judgment will resume after Director Otto Lobo returns the case for deliberation.