By: André Jerusalem

On September 21, 2021, the Brazilian Securities and Exchange Commission (“CVM”) judged the Administrative Sanctioning Proceeding CVM SEI 19957.000520/2020-01 (RJ2020/01227), which analyzed an accusation attributed to an independent investment agent (“AAI”) accused of receiving funds from a client in his personal account, thus violating art. 13, II of CVM Instruction No. 497 of June 3, 2011, which prohibits AAIs from “receive from or on behalf of clients, or deliver to them, for any reason and including as remuneration for the provision of any services, cash, securities or other assets”.

Additionally, the AAI was also accused of using these client resources without a specific purpose, resulting in the loss of the amount received in a financial pyramid investment, violating the caput of art. 10 of the aforementioned instruction, which provides for the obligation to act with probity, good faith and professional ethics, employing in the exercise of the activity all the care and diligence expected of a professional in his/her position, in relation to clients and the institution that is part of the securities distribution system by which he/she has been hired.

The facts described in the administrative sanctioning process were corroborated by the accused, who did not present a defense to the accusation made.

Thus, the CVM board unanimously decided to sentence the accused to a fine of R$150,000.00 (one hundred and fifty thousand reais) for violating Article 13, II of CVM Instruction 497, as well as a temporary ban on exercising the role of Autonomous Investment Agent for a period of 24 months due to a violation of Article 10 of the same legal instrument.