SAO PAULO, April 8 (Reuters) - A Brazilian appeals court ruled on Monday that Banco BTG Pactual SA could attempt to hire away independent brokers associated with the country’s largest investment firm XP Investimentos SA, a source with knowledge of the matter said.
XP filed a lawsuit against BTG in December, seeking to bar BTG’s new digital platform from poaching its brokers, in a move that BTG slammed as anti-competitive.
XP accused BTG of using inside information gained while it was managing the investment firm’s initial public offering in 2016 to build its own platform. BTG was among a group of investment banks hired to manage an IPO that was canceled.
A previous court injunction had barred BTG from contacting XP’s independent brokers in February.
Despite Monday’s BTG victory, the full case has yet to be analyzed by Brazilian Justice. The decision will be published in the coming days.
BTG’s digital platform is one of bank’s fastest growing units. In December, it launched an online brokerage and started working with independent brokers.
BTG and XP declined to comment on the matter. (Reporting by Carolina Mandl Editing by Marguerita Choy)