Central Bank of Brazil liquidates two Grupo Simpala entities

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, Rio Grande do Sul.

The decision was prompted by the compromised economic-financial status of the institutions, which posed risks to creditors, and by “grave violations of the rules that govern their activities.” As part of the measure, the Central Bank has ordered that the assets of the controllers and former administrators of these institutions be made unavailable.

Despite the severity of the violations, the Central Bank noted that the companies have a low market share. The consortium administrator represents 0.1% of active members, while the financial institution held 0.004% of the total assets of the National Financial System as of June 2024. Investigations are ongoing to determine if legal or regulatory breaches occurred, which could lead to administrative sanctions and reports to competent authorities.