8/30/2022
The Resolution of the National Monetary Council (“CMN”) No. 4,970, of November 25, 2021 (“Resolution”), regulates the authorization processes related to the functioning of financial institutions and other institutions regulated by the National Monetary Council, specified in its 1st article, among them: savings and loan associations; commercial banks; exchange banks; development banks; investment banks; credit cooperatives and societies; loan society; etc.
On August 30, 2022, the Central Bank of Brazil (“BACEN”) issued the Normative Instruction No. 299, in order to regulate the Resolution and provide for the procedures, documents, deadlines and information necessary for the processing of authorization requests related to the operation of the financial institutions in question.
Among the main points of the regulation, are the instructions for requesting each type of authorization, such as: operation; transfer or change of control; merger, spin-off or incorporation; corporate transformation; possession and exercise of elected officials; change in capital stock, corporate name, corporate purpose, bylaws or articles of association, and category; creation or termination of an operating portfolio by a multiple bank; and practice of leasing operations.
Based on this Normative Instruction, therefore, the procedural demands relating to the documentation and information needed to prove the requirements for each authorization listed above are implemented. In this way, there will be a better management of the regulation of the topic and a clearer identification of the respective rules and procedures. This will also contribute to greater agility and efficiency in the financial institutions’ authorization and operation processes.
The novelties brought by the new normative text include, firstly, the new models of documents for the instruction of authorization requests, which will be available in Chapter 8.20 of the Manual for the Organization of the Financial System (Sisorf) – BACEN’s system that makes available the templates and instructions on this type of process.
Secondly, it is worth clarifying that the provisions of this Normative Instruction do not apply to claims related to institutions in the segments of Consortium Administrators, Payment Institutions, Payment Arrangements, Database Managers and Financial Market Infrastructures.
Thirdly, this rule applies to authorization requests and other acts that are filed as of September 1, 2022, and requests not instructed in accordance with the new normative basis from this date onwards will be filed without merit analysis.
It should be noted that BACEN has launched various laws and measures – in various sectors regulated by it – in order to facilitate the processes that depend on its intervention.
Thus, it is clear that BACEN intends to guarantee more simplified processes for authorization and operation procedures – the increase in cases and institutions in recent years has made the processes lengthy, despite BACEN’s willingness to work proactively, encouraging the market and enabling the operation of new players.
