CVM, Brazil?s securities and exchange regulator, has agreed to give ABN-Amro extra time to present its defense under case no. 08/2001, in which Opportunity Fund is accused of irregularities. The Netherlands-owned bank now has until July 4 to comply.
ABN-Amro acted as custodian for the fund, which is accused of having shareholders who resided in Brazil. This would have been illegal under the rules for Annex IV (investment in Brazil by offshore entities).
Opportunity Fund is a shareholder in Brasil Telecom and Telemar. Anatel hasn?t yet approved its recent acquisition of TIW?s holding in Telemig Celular and Amazônia Celular.
CVM announced publicly the decision to give ABN-Amro extra time, showing that the in-house technical report has been delivered and all that remains is for the plaintiffs to submit their defense, as reported by Correio Braziliense about a month ago. The same newspaper said the final decision will be a collegiate one but CVM?s oversight department will rule against Opportunity Fund.
CVM confirms that the oversight department has written its opinion but says it could be changed in response to arguments submitted by the plaintiffs in their defense. Nothing can be divulged as the proceedings are subject to sub judice rules.
CVM?s press office says the board is expected to announce a verdict before the end of this year. It?s worth recalling that Luiz Leonardo Cantidiano, president of CVM, was counsel for Opportunity Fund at the time of the alleged irregularities. He?s expected to recuse himself but hasn?t yet said so in public.