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Flavio Martins Rodrigues, Thiago Araújo and Ana Luiza Moerbeck publish article on the recent decision by the Federal Court of Accounts (TCU) to hold outsourced investment fund managers liable

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Our partners Flavio Martins Rodrigues and Thiago Araújo, together with our lawyer Ana Luiza Moerbeck, published an article in Migalhas on the recent decision by the Federal Court of Accounts (TCU) to hold outsourced investment fund managers liable.

The decision brought two important changes: (i) the penalisation of the external manager of an investment fund of Closed Supplementary Pension Entities (EFPC); and (ii) the application of the Optimal Portfolio Theory to quantify damages caused by mismanagement of assets guaranteeing benefit plans.

In this case, the Court not only recognised the possibility of holding private agents liable, but also imposed joint and several liability on them alongside former pension fund managers for losses resulting from unsuccessful investments, calculated by the TCU at R$ 452 million. In addition, the Court imposed a fine of R$ 90 million on the external manager.

According to the authors, the decision represents a warning to the market, and professionals will need to be extra vigilant.

Read the full analysis.

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