Failures to disclose or provide mandatory information are the most frequent type of irregularity among the 314 cases filed with the CVM (Securities Commission) related to Banco Master, Reag and related entities. The second most frequent type are compliance and internal control failures.
The information is part of the report by Reag and Related Entities (GT), presented to the Governance and Risk Management Committee (CGR) this Monday (2).
“These two categories, together, point to structural and systemic deficiencies in the entities in some way linked to the Master group. In this universe, conduct with different levels of impact is included – from delays in sending periodic information and registration inconsistencies to serious informational omissions associated with operations of greater complexity and with greater impact on investors”, said the regulator in a statement.
“Completing the list of most frequent infractions are those related to non-compliance with fiduciary duties, failures to deal with conflicts of interest and non-compliance with other investment fund rules,” the CVM said in a note.
According to the regulator, signs of insider trading and market manipulation were also identified. “Although less frequent in absolute terms, these conducts are particularly serious.”
