Federal Police Operation at Municipal Pension Fund Deepens Banco Master Investigation

Overview

• The Federal Police searched the Santo Antônio da Posse municipal pension institute to gather evidence on suspected irregular investments tied to Banco Master.
• The probe connects to a wider scandal in which Rio Previdência bought nearly R$1 billion in Master securities despite warnings from the state audit court.
• Regulators tightened standards for public sector pension plans in December, and from February most plans can only buy federal bonds unless they earn a governance certificate.
• The new framework also bars smaller‑tier firms from key fund roles and removes independent sales agents to curb opaque deals and conflicts of interest.
• Reuters counted 19 public plans that purchased R$1.87 billion in Master notes without deposit insurance, raising the risk of losses that could later force taxpayer top‑ups.