The Argentina Securities Commission (CNV) has imposed its largest sanction to date on GUARDATI TORTI S.A., a Clearing and Settlement Agent (ALyC), for irregularities in account management and breaches of its information and reporting obligations. The measures include a record fine calculated as a multiple of the benefit obtained, the disqualification of certain company officials, and a prohibition on the firm operating in the capital markets. The CNV applied Article 132 of Argentina’s Capital Markets Law No. 26,831, under which the fine can be set at up to five times the damage caused or the benefit obtained. The investigation found that, amid its separate grain brokerage business, the firm issued deferred-payment cheques on behalf of VICENTÍN S.A. and ultimately used funds belonging to its brokerage clients to meet payments linked to that grain brokerage activity. Client complaints to the CNV included an inability to trade or access cash balances, delays transferring securities to other agents, discrepancies between firm statements and records held by CAJA DE VALORES S.A., and difficulties contacting the firm. The case also cited failures to provide requested information to CNV staff, governance and compliance breakdowns, non-disclosure of a material exposure to related company GYT PLUS S.A. (sharing directors), continued operation despite financial distress until the CNV suspended its registration on 19 February 2020, and late or confusing public communications.

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