Post by xyz3400 on Feb 20, 2024 6:16:04 GMT
The expression known in common law has its origins in the English verb to churn , in the sense of shaking, agitating the market, increasing the volume of operations on the stock exchange. The objective of the conduct is not exactly to obtain greater gains or avoid greater losses for the holder of the share due to the variation in the stock, but rather to generate more brokerage, without the authorization of the client of the stock brokerage account that is maintained in error. Brazilian Criminal Law does not specifically criminalize criminal conduct with its essential characteristics, which has directed control bodies to seek typicality in the crime of providing false information in the national financial system (article 6 of Law 7,490/86)[ 1], which provides for a sentence of up to six years in prison.
The criteria and parameters for recognizing the churning phenomenon are undefined in specialized economic and legal sciences[2], creating uncertainty for market agents and control bodies. There is a constant danger of unfair criminal repression of the business practice of providing independent investment agent services. 2. Elements A superficial understanding holds that the phenomenon would depend exclusively on two Honduras Mobile Number List mathematical criteria: (1) “Turnover Ratio of the investment portfolio” ( Turnover Ratio – TR) and (2) “Trading Cost Rates” ( Cost-equity Ratio – C/E). According to the understanding, administrative and criminal offenses would be reduced to objective analysis, without verifying the subjective relationship of the author with the conduct and the result and the actual occurrence of a prohibited result.
Turnover rate of the investment portfolio refers to the number of turnovers carried out with the client's portfolio, which is the comparison of its average equity with the total volume of transactions carried out. One of the references sometimes used, although with the need to frame the client's profile specifically, would be the comparison of the individual amateur investor, who dedicates part of the day to operations, with professional investors dedicated exclusively to market operations. The tendency is for an individual investor to operate their private portfolio of shares at a lower rate than that operated by share funds, managed by professionals with exclusive dedication to the task. The Trading Cost Rate seeks to identify excessive expenses borne by the investor. The comparison occurs between the total of all expenses in the investor's portfolio and their average equity.
The criteria and parameters for recognizing the churning phenomenon are undefined in specialized economic and legal sciences[2], creating uncertainty for market agents and control bodies. There is a constant danger of unfair criminal repression of the business practice of providing independent investment agent services. 2. Elements A superficial understanding holds that the phenomenon would depend exclusively on two Honduras Mobile Number List mathematical criteria: (1) “Turnover Ratio of the investment portfolio” ( Turnover Ratio – TR) and (2) “Trading Cost Rates” ( Cost-equity Ratio – C/E). According to the understanding, administrative and criminal offenses would be reduced to objective analysis, without verifying the subjective relationship of the author with the conduct and the result and the actual occurrence of a prohibited result.
Turnover rate of the investment portfolio refers to the number of turnovers carried out with the client's portfolio, which is the comparison of its average equity with the total volume of transactions carried out. One of the references sometimes used, although with the need to frame the client's profile specifically, would be the comparison of the individual amateur investor, who dedicates part of the day to operations, with professional investors dedicated exclusively to market operations. The tendency is for an individual investor to operate their private portfolio of shares at a lower rate than that operated by share funds, managed by professionals with exclusive dedication to the task. The Trading Cost Rate seeks to identify excessive expenses borne by the investor. The comparison occurs between the total of all expenses in the investor's portfolio and their average equity.