Grupo Simpala faces liquidation by Central Bank of Brazil

The Central Bank of Brazil has decreed the extrajudicial liquidation of two companies belonging to Grupo Simpala: Simpala Lançadora e Administradora de Consórcios and Simpala S. A. Crédito, Financiamento e Investimento. Both entities are based in Porto Alegre.

The decision was prompted by the deterioration of the institutions' economic-financial situations and “grave violations of the rules that govern their activities,” which posed risks to creditors. As a result, the assets of the companies' controllers and former administrators have been frozen. While the companies hold a small market share—representing 0.1% of active consortium members and 0.004% of the National Financial System's total assets—the move has direct implications for their clients.

The Credit Guaranty Fund (FGC) has estimated that approximately 21,000 creditors of Simpala S. A. Crédito, Financiamento e Investimento have eligible deposits totaling R$ 622 million. The FGC is instructing creditors to use its mobile application to begin the qualification process for payments, which are subject to standard limits of R$ 250,000 per CPF/CNPJ.

Reports suggest the financial institution may have engaged in circular operations with related companies to produce artificial profits. In response, Grupo Simpala's controllers stated they were surprised by the decision, calling it disproportionate given the companies' history of integrity.