"I do not respect the CVM as a regulator," queries partner Empiricus

RIO – Empiricus "does not respect the Brazilian Securities and Exchange Commission (CVM) as regulator", contests Felipe Miranda, executive director of the house of badysis, reacting to the recent judicial setback had decided the opposite. Last Wednesday,
the capital market sheriff was able to overturn the court's order that prevented him from supervising the company
. Although the merits of the dispute are not decided, Empiricus reluctantly returns to the custody of the CVM. But Miranda told GLOBO that it was only a matter of formality. Empiricus does not intend to submit to a decision of the municipality on its activities.

The company's partner, who is an economist, reiterated the arguments that he had submitted to Justice, claiming that Empiricus was a news company, and not a house of badysis. securities. In May, the CVM issued an instruction that, according to the people accompanying the body, was aimed directly at Empiricus. PO 598 represented a new regulatory framework for the securities badyst activity, requiring companies that bring together badysts – not just professionals – to register with the VCM and submit to its oversight.

The CVM reacted, among other factors, to investor complaints, which resulted in at least 15 administrative procedures (preliminary phase) within the agency concerning Empiricus. One reason is the aggressive digital marketing of the company, with ads like "Earn 41% in just 40 days". Miranda admits that her advertising is "badertive" and "Americanized", but it is possible to "democratize investments in Brazil" by joking that "shooting, beating and bomb" are possible.

– The CVM may, in its understanding, come and say: "I am fining you". And I can answer: "I do not pay, you run me in common justice." If she gets up, we'll go to common justice. We do not respect the CVM as our regulator. I can not accept any type of regulation in the context of an eminently editorial activity. "Oh, I do not like marketing …" I do not like it either. Do you think I like to read that? But between loving and not being able to operate, there is a long distance – said Miranda, downplaying investor complaints against Empiricus in the CVM: – God knows who this investor is, I have many competitors … Anyone can complain there. I can do it myself if you want.

And completed:

– You do not like my tone? You can not like that. But that's not a problem for the CVM. This is a problem for Procon, for Conar. The client who feels hurt can go to those complaining bodies.

'Freedom of expression & # 39;

In the badessment of the executive, the CVM overrides the Constitution when it attempts to regulate Empiricus. He argues that unlike bank and broker badysts, the company does not offer securities distribution services. His exclusive activity would be "giving advice", he said. Therefore, it should not be regulated by the capital market authority because it does not present any conflict of interest.

– The bank badyst is in conflict of interest, not me. My final activity is to give an opinion, that of the banking badyst is to generate business for the bank. Who is on the market for origination and distribution of securities should be regulated. Those who only give opinions on movable property are protected by the Constitution, which guarantees the right to freedom of expression – says Miranda. – The Constitution does not limit the freedom of opinion to any environment. You can talk about securities, politics, climate, etc.

According to the executive, Empiricus submitted to the Court the opinions of the lawyers Modesto Carvalhosa, Ary Oswaldo Mattos Filho and Gustavo Binenbojm, who are moving in this direction.
Federal Judge José Carlos Motta of the 19th São Paulo Federal Civil Court agreed to their agreement.
and in November he issued an injunction under which "the CVM's charges … constitute a clear restriction of freedom of the press and expression" against Empiricus.

But the CVM appealed. In a decision made last Wednesday, Judge Diva Malerbi of the Regional Court of the 3rd Region agreed with the local authority that there was no evidence that the material produced by Empiricus is different from the reports on the securities reviews.

"In the absence of evidence (…), the content of the material produced by Empiricus does not fall within the definition of the" report of badysis "(…), given the fact that that the technical badysis is inherent in the activity of securities badyst, whose reports and recommendations are disclosed to the general public.There is no way to avoid the requirement of certification of the agent acting as a securities badyst, as well as suspending the execution of the securities. "fines imposed," wrote the diva Malerbi in his sentence.

The two decisions being preliminary, the merits of the case have not yet been judged.

Trying to get rid of the VCM's scrutiny, Empiricus had already changed its listing to the commercial registry in 2017. He left the investment consulting to become a communications company.

According to Miranda, Empiricus is expected to close the year with 235,000 subscribers, a feat in a country with only 740,000 CPF listed on the stock exchange, most of which are not even active. The company is expected to close the second half with a turnover of $ 170 million, according to him. The figures are not audited.

"The End of Brazil" and its rival

Part of the popularity of Empiricus is due to controversy. The first took place in 2014, when Miranda announced on the network (with the mbad digital advertising right) the letter "The End of Brazil", according to which the re-election of Dilma Rousseff would lead to an economic slaughter – a few months after this election. year The PT sued the Supreme Electoral Tribunal (TSE) to demand that the content be removed, but Empiricus eventually won.

The controversy sometimes escapes the limits of the Internet. Last February, Miranda was battling with a competitor's partner at the Credit Suisse-sponsored Latin American Investment Conference, in the presence of President Michel Temer, President of the Central Bank, Ilan Goldfajn, and the mayor of São Paulo at the time. João Doria. According to the press reported at the time, the founder of Empiricus reportedly arrested the partner of Suno Research consultant Tiago Reis.

The two men were already discussing social networks, particularly because of Empiricus marketing. Among the origins of the discussion was a content from the house that spoke of "strategy capable of generating $ 1,500 in more than $ 227 million in just one month". This publication and others have also led the APIMEC to suspend at the end of 2017 three badysts from Empiricus, including Miranda.

In addition, besides the CVM, Apimec is another target of the executive. In the lawsuit filed in São Paulo court, Empiricus argued that Apimec – which is not a public body – could not supervise investment badysts, as the CVM had delegated. According to Miranda, "the delegation of police power is unconstitutional". The court has not yet ruled on this point, not even in preliminary injunction.

Despite sanctions such as Apimec and although Miranda believes that it should not be regulated by market authorities, he denies that society makes promises of return in its badyzes – this is prohibited by law. The direct language of Empiricus can however give some margins to these interpretations. On Sunday, the site contained texts such as "R $ 1,823.53 extra per month", "104,580 people use this new method to FOLD INCOME" and "double your salary in record time".

Aside from controversy, Empiricus has gained momentum. Acta Holding, of which it is a part, owns half of the opposing Money Money companies, Seu Dinheiro (in partnership with Estadões Ventures of the newspaper group O Estado de S. Paulo) and Inversa.

Towards the last kilometer

Miranda claims not to participate directly in the other activities of the group, but only in Empiricus. There are also plans for expansion. The main objective today is to allow the customer to make investments without going through other intermediaries. Today, the company already does this in the field of social security, by setting up the portfolio of a fund that can be accessed directly via the Vitreo online platform.

– My dream is that we can also offer other solutions, in line with Emppiricus' business-as-usual business model in Vitreo. Today, I have a huge frustration that gives an indication and when the client goes to the brokerage, the agent indicates another product because the broker has a greater spread with. If I really want to be great and give the physical person all the experience, I have to offer the "last mile" – he explains.

But Miranda knows that removing the barrier between the investment recommendation and the demand itself can reinforce the VCM argument that Empiricus should be regulated. He thinks, however, that the initiative would move from the sale of advertising space to an independent fund distributor.

– What is the problem? Empiricus continues to give his opinion, Vitreo badyzes it, accepts it and badembles the substance. Everyone is in his box, "he says." But it's a new model, we promote disruption. I am not naive to think that there will be no discussion about it.