CVM accepted a proposed Term of Commitment offered by a foreign securities broker, with the purpose of settling an administrative procedure.
The firm was accused of acting irregularly in the securities market, without due authorization or exemption thereof. After negotiating with CVM, the accused company committed to paying BRL 2.4 million in 4 equal installments, adjusted by the IPCA.
PAS CVM 19957.007607/2022-63 was initiated due to complaints and inquiries from investors to CVM’s Customer Service Center, to investigate irregularities regarding the operation of a foreign securities brokerage company through an electronic trading platform in the securities market. The company’s website contained text in Portuguese with information about its alleged track record, as well as a disclaimer prohibiting the use of the platform by Brazilian residents.
During the investigations, CVM issued a Stop Order warning the market regarding the lack of authorization by the accused company to operate in the Brazilian securities market, ordering the company to cease the operations under investigation. Even after the alert, the operations remained active.
Until the proposal of the Term of Commitment, CVM had already confirmed that the accused company was violating current legislation and regulations, acting in the national securities market as a distributor and intermediary of securities without due authorization or exemption thereof, capturing resources from Brazilian clients and offering products such as investments in the Forex market with foreign exchange derivatives.
The case reinforces the need for attention by foreigners interested in accessing the Brazilian securities marker and working with clients residing in Brazil, as well as being an example of CVM’s proactive and vigilant stance regarding compliance with current market legislation and regulations.
