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International advisory firm banned in Brazil

Financial advisory firm Swim WorldWide has been banned from giving advice in Brazil.

International advisory firm banned in Brazil

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The Comissão de Valores Mobiliários (CVM) announced late last month that Swim WW is not authorised to “exercise any activities in the securities market of Brazil” and does not “meet the requirements of CVM regulation". The watchdog added that Swim WW cannot provide consulting services of securities nor publicly offer investment in funds or any other financial instrument.

In addition to the ban, the CVM has imposed a fine of R5,000 ($3,100, €2100) for each day it has broken the country’s financial regulatory laws.

However, Paul Scott, managing director of Swim WW, said the CVM was incorrect in its assumption that the IFA provides advice on direct security investments.

“We do not and have never traded in or provided advice on direct security investment in Brazil so have never needed to be authorised or registered with the CVM to do so,” said Scott.

“Since this announcement was made by the CVM last month, we have been proactive in trying to resolve the situation. In view of this, after discussing the situation with our lawyers, we arranged a meeting with the CVM which is taking place later today [Tuesday 30 August]. If it transpires that there is something they want us to do then we will happily ensure we comply, although this is not necessarily what we are expecting.”

According to its website, Swim WorldWide employs 70 personnel and has offices in Buenos Aires, Lugano and London. It has been operating in South America since 2000.

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