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Court injunction bars BTG Pactual from targeting XP's distribution agents

A business court in São Paulo has banned Banco BTG Pactual SA from approaching or negotiating with distribution agents that are part of brokerage firm XP Investimentos Corretora de Câmbio Títulos e Valores Mobiliários SA's network, Valor Econômico reported.

Judge Luis Felipe Ferrari ruled that BTG must also refrain from encouraging independent companies that sell products available on XP's platform to break their contracts with XP. The bank was also prohibited from trying to access and use sensitive information about XP's clients.

The court injunction relates to a recent lawsuit that XP filed against BTG, accusing the bank of breaking a two-year confidentiality agreement signed when BTG was hired as an underwriter for XP's planned IPO in December 2016.

The IPO was later called off when XP decided to sell a minority stake to Itaú Unibanco Holding SA.

XP Investimentos benefits from a strong network of independent companies that sell investment products available on the XP platform, which has boosted the company's growth in recent years. XP's competitors have reportedly targeted that distribution network while trying to incorporate new agents.

XP and BTG did not comment on the court ruling, but BTG previously claimed that its own digital platform was launched in November 2016, a month before the signing of the confidentiality agreement.

Banco BTG Pactual is part of BTG Pactual Group.