Regulatory Alerts2024-02-22 | Resolução Conjunta 9Joint Resolution No. 9 — Regulation of the Fiduciary Agent in the Issuance of Insurance Risk Notes via Special Purpose Insurer
The Superintendence of Private Insurance and the Central Bank of Brazil issued Joint Resolution No. 9 to regulate the duties, requirements, and responsibilities of fiduciary agents in the issuance of Insurance Risk Notes (LRS) through Special Purpose Insurers (SSPE). The resolution mandates that only authorized financial institutions may serve as fiduciary agents, strictly prohibiting conflicts of interest and requiring rigorous oversight of asset independence, risk transfer contracts, and investor rights. It further establishes specific reporting obligations, including annual reports on premiums, guarantees, and claims, while subjecting fiduciary agents to penalties for non-compliance.
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