CVM suspends registrations of Pomifrutas and Saraiva for non-compliance with information requirements

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CVM suspends Pomifrutas and Saraiva

Highlights

The CVM has suspended the registrations of Massa Falida de Pomifrutas S.A. and Saraiva Livreiros S.A. - Falida due to failure to provide required information for over a year.
While suspended, the companies are not allowed to trade securities issued in any regulated market, including stock exchanges, organized over-the-counter markets, and unorganized over-the-counter markets.
The suspension does not exempt the companies, administrators, and controllers from liability for previous infractions and reinforces CVM’s supervision until regularization or cancellation.

This article was translated from the original. Read the original version by our correspondent here.

Suspension due to lack of information

The Securities and Exchange Commission announced, in a statement from the Superintendence of Corporate Relations, that the suspension of registrations was applied under Article 21 of Law 6,385. According to the technical department, the decision results from the failure, for more than a year, to comply with the obligation to provide information as set out in CVM Resolution 80.

The companies affected by the measure are the Massa Falida de Pomifrutas S.A. and Saraiva Livreiros S.A. - Falida. The suspension applies to publicly held companies that fail to meet periodic disclosure duties required by the Brazilian capital market regulator.

Impacts on trading and liability

While the registrations remain suspended, the companies cannot have the securities they issued admitted for trading in regulated markets. The restriction covers organized over-the-counter markets, stock exchanges, and unorganized over-the-counter markets.

The SEP also emphasizes that the suspension does not exempt the companies, their controllers, and administrators from liability for any violations committed before the cancellation of the registration. In practice, the measure reinforces the CVM’s supervisory power over delinquent issuers and limits their activity in the market until the registration is regularized or regulatory closure is reached.

Our previous publication on the resource limitations of the CMVM in Portugal highlighted that the supervisor faces new European requirements and additional costs to respond to data requests, while also needing to invest in technology, including Artificial Intelligence. We also pointed out that recruitment pressure from AMLA may make it difficult to retain talent, reducing the regulator’s operational capacity to meet other supervisory fronts.

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