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Brazil's XP to cover client losses from former affiliate trader
October 7, 2017 / 6:15 PM / 12 days ago

Brazil's XP to cover client losses from former affiliate trader

SAO PAULO, Oct 7 (Reuters) - XP Investimentos SA said on Saturday it will fully compensate clients who incurred losses through what it described as rogue trades by a former, autonomous trader with links to the Brazilian brokerage.

The losses stemming from the trades amounted to 5 million reais ($1.6 million), with four clients affected, XP said in a statement.

“The former affiliate trader acted inappropriately, breaching our norms and ethical principles,” XP Investimentos said in the statement. The broker said it will fully compensate the affected clients, adding that it reserves the right to seek claims from the parties ultimately responsible for their losses.

The clients will be contacted in the next few days, XP said after newspaper O Globo reported that the brokerage’s clients in Rio de Janeiro had suffered losses.

Local media reported in January that hackers stole data from 29,000 XP clients and then allegedly tried to get the firm to pay 22.5 million reais ($7.1 million) to keep the security breach a secret.

The firm said it has 500,000 clients. ($1 = 3.1557 reais) (Reporting by Ana Mano; Editing by Paul Simao)

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