Banking, insurance and finance
Executive Order No. 881 (MP 881), issued on April 30 of this year, aims to ensure and foster economic freedom in Brazil, as well as reduce bureaucracy in various industries.
Legal entities and investment funds incorporated in Brazil have until August 15 to submit a report to the Central Bank of Brazil, detailing investments in their quotas and/or shares held by foreign investors on December 31 of the previous fiscal year, or the outstanding short-term trade debts owed to non-residents on the same date, in the following situations:
In 2013, shortly after scandals involving the manipulation of exchange rates and interest rates became public, the International Organization of Securities Commissions (IOSCO) published a report in response to a consultation on rules applicable to financial benchmarks. Not surprisingly, concerns were raised about the fragility of certain benchmarks, particularly in terms of integrity and continuity.
Individuals and legal entities resident, domiciled or with headquarters in Brazil, as provided for in tax law, must report to the Central Bank of Brazil the assets and amounts held by them outside the country.
Resolution No. 4,662 of the National Monetary Council (CMN), issued on May 25 of this year, provides for the requirement of a bilateral margin of guarantee on transactions with derivative financial instruments carried out in Brazil or abroad by financial institutions and other institutions authorized to operate by the Central Bank of Brazil (Bacen).
Presidential Decree No. 9,544/18, published on the last 30th, acknowledged the interest of the Brazilian government in having foreign ownership of up to 100% of the capital stock of Direct Credit Companies (SCDs) and Interpersonal Lending Companies (SEPs) authorized to operate by the Central Bank of Brazil (Bacen), also known as credit fintechs.
Heritage funds, also known as endowments or philanthropic funds, have recently been regulated by Presidential Decree No. 851, of September 10, 2018.
After extensive discussion with market participants by means of the Public Consultation No. 55/2017, published by the Central Bank of Brazil (Bacen) on August 30, 2017, the Brazilian National Monetary Council (CMN) issued Resolution No. 4,656 on April 26, which created two new types of financial institutions specialized in loan transactions using electronic platforms: direct lending companies (SCD) and peer-to-peer lending companies (SEP).
The Superior Court of Justice (STJ) established an understanding that electronic loan agreements signed through the Brazilian Public Keys Infrastructure (ICP-Brasil) have the enforceability of an enforceable instrument, thus dispensing with the need for signature by two witnesses. The opinion was obtained in the judgment of Special Appeal No. 1.495.920/DF, of the authorship of Justice Paulo de Tarso Sanseverino, on May 15, 2018.
Legal entities and investment funds incorporated in Brazil must submit a report to the Central Bank of Brazil, detailing investments in their quotas and/or shares held by foreign investors, or the outstanding short-term trade debts owed to non-residents, on December 31 of the previous fiscal year, in the following situations:
The Central Bank of Brazil (Bacen) has completed the regulations necessary for the issuance of Secured Real Estate Letters (LIG), with the issuance of Circular No. 3,895/18, on May 4. The norm provides for the procedures for a centralized deposit of LIGs and for a centralized registration or deposit of the assets that make up the asset-backed portfolio securing the issuance of that instrument.
On March 29, the Central Bank of Brazil published Public Notice No. 64/2018, containing a proposed resolution to regulate the conditions and limits on credit transactions with related parties by financial institutions and leasing companies.
