2023-10-20 20:11:18
© Reuters. CVM notifies exchange for irregular offer in Brazil
Blockmarket – The Securities and Exchange Commission (CVM) published an irregular offer notification for the 4XC exchange. According to the stop order note, the company is not authorized to raise funds for securities investments in Brazil.
Therefore, 4XC was notified about its irregular operations in the country, through a stop order notification. According to the commission, the company 4xCube Ltd is responsible for the fined brokerage.
“The Securities and Exchange Commission (CVM) alerts the capital market and the general public about the irregular actions of the broker 4XC, under the responsibility of the company 4xCube Ltd. According to the Superintendence of Market and Intermediary Relations (SMI), there were identified signs that the brokerage has been seeking to attract clients residing in Brazil to carry out securities transactions through the website.”
With the notification, the company must suspend offering this type of investment in Brazil, declares the CVM.
“Through CVM Declaratory Act 21,352, the Autarchy ordered the broker and the company to immediately suspend any public offer, directly or indirectly, to investors residing in Brazil of investment opportunities in securities, due to the fact that they are not part of the system distribution provided for in art. 15 of Law 6,385.”
Exchange fined by CVM
The CVM requested the suspension of the collective investment offer promoted by the company 4XC. With the notification, the exchange must stop offering this type of investment immediately.
Otherwise, a fine will be applied to the exchange and the company 4xCube Ltd. The CVM has stipulated a daily charge of R$1,000 for the company. Furthermore, the fine can be extended to leaders and those responsible for the exchange that operates irregularly in the country.
“If the CVM’s determination is not adopted, the broker, the company and any person who may be identified as participating in the irregular acts will be subject to a daily fine of R$1,000.00.”
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