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XP Investimentos to compensate 4 clients for rogue trade losses


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XP Investimentos to compensate 4 clients for rogue trade losses

XP Investimentos SA said it will pay full compensation to four clients who suffered total losses of 5 million Brazilian reais due to rouge trades by a former affiliate trader, Reuters reported.

"The former affiliate trader acted inappropriately, breaching our norms and ethical principles," the Brazilian brokerage said in a statement, adding that it may pursue claims from parties deemed to be ultimately responsible for the losses.

The firm, which has 500,000 clients, reportedly suffered a hacker attack earlier in 2017 in which data from 29,000 clients was stolen. The hackers were said to have asked the company to pay 22.5 million reais to keep the data breach secret.

Brazilian banking giant Itaú Unibanco Holding SA announced in May an agreement to acquire 49.9% of XP's share capital, representing 30.1% of the brokerage firm's voting shares, for about 6.3 billion reais.

As of Oct. 6, US$1 was equivalent to 3.17 Brazilian reais.