The Securities and Exchange Commission (CVM) accepted the Term of Commitment proposed by Empiricus in the amount of R $ 4.250 million to be able to continue acting in the market analysis. Felipe Miranda, the company's main name, will have to pay R $ 50 thousand of this total.
According to the decision, published on Tuesday (11) on the CVM website, Empiricus will not pay the amount alone. Of these, R $ 500 thousand will be paid by the publisher Inversa, the company's subsidiary, and R $ 750 thousand will be paid by the 15 analysts, including Miranda.
In addition to the payment proposed in the Term of Commitment, the company will have to accredit itself with the Association of Capital Market Investment Analysts and Professionals (APIMEC). Without this, they will not be able to act as securities analysts.
The deadline, therefore, will be 60 days, counting from the publication of the Term of Commitment in the “Electronic Diary” section of the CVM website, as stated in the decision of the local authority.
The agreement marks a setback by the company and ends a dispute with the CVM that has been going on for two years. Empiricus wanted to be recognized as a content publisher and not as a house of analysis – so it would not be regulated by the CVM.
In an interview with the newspaper O Globo in December 2018, Miranda even said that Empiricus "does not respect the Securities and Exchange Commission (CVM) as its regulator".
Empiricus and Inversa, according to the opinion of the Term of Commitment Committee, had been distributing market analysis reports on a professional basis, without due registration.
This fact would have led APIMEC, the entity that accredits the activity of securities analysts, to file a complaint with the CVM.
Some of the analysts were even licensed – like Felipe de Miranda himself, the main personality of Empiricus, since May 2018. However, most were unregistered or did not even have accreditation.
From the point of view of the complaint brought to the CVM, Empiricus was still operating with misleading advertising.
“In relation to Empiricus, in summary, in the complaints the company is accused of carrying out the activity of analyzing securities without authorization, as well as of carrying out“ misleading advertising ”, through language that would induce investors to evaluate errors about the strategies recommended investments with promises of guaranteed profitability and risk-free investment ”, says the complaint.
The Term of Commitment, however, is seen by the municipality as a necessary measure to “discourage the practice of similar conduct in the market, and it is opportune and convenient to carry out the agreement”.
Before the CVM accepted this proposal, there was another one that had been rejected last year. Empiricus and Inversa offered R $ 500 thousand at the time to recover “possible diffuse damage to the market”.
The Federal Special Attorney's Office (PFE), which works with the autarchy, however, argued that this indemnity proposal would have to be made to investors.
PFE also stressed that “there are several complaints received by the Investor Orientation Superintendence (SOI), which‘ accuse Empiricus of exercising the activity of securities analyst without authorization, as well as of ‘misleading advertising’ ”.
The company, according to the Attorney's Office, had been inducing investors to misjudgments about the recommended investment strategies with promises of guaranteed profitability and risk-free investment.
This would be one of the points that would indemnify and there is no clause to recover losses for injured investors, according to PFE / CVM.
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