Joint Resolution No. 4 of March 24, 2022

Joint Resolution No. 4

JOINT RESOLUTION NO. 4, OF MARCH 24, 2022

Amends Joint Resolution No. 1, of May 4, 2020, to provide for Open Finance .

The Central Bank of Brazil, in accordance with Art. 9 of Law No. 4.595, of December 31, 1964, makes public that its Executive Board, in a session held on March 17, 2022, and the National Monetary Council, in a session held on March 24, 2022, based on Arts. 4, item VIII, of the aforementioned Law, and 9, item II, of Law No. 12.865, of October 9, 2013,

R E S O L V E D:

Art. 1 The Open Financial System referred to in Joint Resolution No. 1, of May 4, 2020, and other normative acts that regulate the topic, shall henceforth be named Open Finance .

Art. 2 The summary of Joint Resolution No. 1, of 2020, shall henceforth read with the following alteration:

"Provides for the implementation of Open Finance ." (NR)

Art. 3 The Joint Resolution No. 1, of 2020, shall henceforth read with the following alterations:

"Art. 1 This Joint Resolution provides for the implementation of Open Finance by financial institutions, payment institutions, and other institutions authorized to operate by the Central Bank of Brazil." (NR)

"Art. 2 ............................................................................................................

I - Open Finance : standardized sharing of data and services through the opening and integration of systems;

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VII - payment transaction initiation service: a service that enables the initiation of a payment transaction instruction, ordered by the client, regarding a deposit or prepaid payment account, commanded by an institution that does not hold the account to the institution that holds it;

........................................................................................................................." (NR)

"Art. 3 The objectives of Open Finance are:

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"Art. 4 ............................................................................................................

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V - reciprocity;

VI - interoperability:

a) between participants; and

b) with other Open Finance initiatives within the scope of the financial, capital, insurance, pension, and capitalization markets." (NR)

"CHAPTER III

OF THE SCOPE OF OPEN FINANCE " (NR)

"Art. 5 Open Finance covers the sharing of, at minimum:

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§ 1 Participating institutions referred to in Art. 6, through the convention referred to in Art. 44, may include other data and services in the scope of Open Finance , provided that the principles, the requirements for sharing, and the other provisions of this Joint Resolution are observed.

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§ 6 For the purposes of sharing data on service channels, products and services referred to in item I, letters "a" and "b", of the caput , the confederation constituted by central credit cooperatives in a three-level system and the central credit cooperative in a two-level system may entrust the provision of information in an aggregated manner from their affiliates, maintaining the responsibility of each affiliate for the information shared related to it." (NR)

"Section II

Of Participation in Open Finance " (NR)

"Art. 6 The participants of Open Finance are:

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III - in the case of sharing the service of forwarding a credit operation proposal referred to in Art. 5, item II, letter "b", in an obligatory manner, the institutions referred to in Art. 1 that have signed a correspondent contract in the Country, whose object includes the activity of service for the purpose of receiving and forwarding proposals for credit operations and leasing operations, through an electronic platform, granted by the contracting institution, as well as other services provided for monitoring the operation, as provided in the regulation on contracting correspondents in the Country.

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§ 4 Institutions exempted from the mandatory participation requirements referred to in items I to III of the caput are those thus exempted by the Central Bank of Brazil, based on criteria related to the quantity and nature of clients, the types of services contracted and distributed, as well as the electronic access channels available and used by clients, observing the objectives and principles contained in this Joint Resolution. " (NR)

"Art. 36. Partnerships are permitted for the institutions referred to in Art. 1 with entities not authorized to operate by the Central Bank of Brazil with the objective of sharing data referred to in Art. 5, item I, letters "c" and "d", as well as of other data and services that may be included in the scope of Open Finance in accordance with Art. 5, § 1.

........................................................................................................................." (NR)

"Art. 44. ...........................................................................................................

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VII

• to the rights and obligations of participants;

VIII

• to the procedures and mechanisms for monitoring participants regarding compliance with:

a) obligations referred to in item VII; and

b) other obligations provided in documents prepared within the scope of the convention;

IX - to the measures applicable to participants for non-compliance with the obligations provided in documents prepared within the scope of the convention referred to in item VIII and to the procedures for applying such measures;

X - to the policies and procedures for internal controls, risk management, audit, and transparency regarding the services provided to participants within the scope of the convention;

XI

• to the governance policy, encompassing responsibilities, guidelines, and assignments regarding the services provided to participants within the scope of the convention;

XII

• to the policies and procedures for communication to society regarding the implementation process of Open Finance , the responsibilities and assignments of participants, and the results achieved; and

XIII

• to other aspects considered necessary for compliance with the provisions of this Joint Resolution.

§ 1 .................................................................................................................

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IV

• the sustainability of Open Finance .

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§ 4 The procedures and mechanisms for monitoring referred to in item VIII of the caput must encompass, at minimum, the following aspects:

I - the adequacy of the use by participants of the services provided within the scope of the convention;

II

• the adherence of participants to the content of the guides and other technical and operational documents prepared within the scope of the convention, when applicable; and

III - the assessment of the quality of the data shared by participants referred to in Art. 5, item I, letters "a" and "b".

§ 5 Participants must be notified regarding the need for any adjustments to their procedures resulting from problems identified during the monitoring activity referred to in item VIII of the caput , including regarding deadlines for such adjustments, in a manner compatible with the criticality and complexity of the situation.

§ 6 The policies and procedures referred to in items X and XII of the caput must encompass the services provided to participants within the scope of the convention that are subcontracted.

§ 7 Within the scope of the convention referred to in the caput , it is prohibited to establish any mechanisms or systems that centralize information related to data and client transactions within the scope of Open Finance , except when expressly provided for in current regulation." (NR)

"Art. 46. ...........................................................................................................

I - to establish the initial structure responsible for the governance of the implementation process of Open Finance , based on the guidelines set forth in Art. 44, § 1; and

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"Art. 49. ...........................................................................................................

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IX - the data, the records, and the other information related to the monitoring and control mechanisms referred to in Art. 40;

X - the instrument and the terms of adherence referred to in Art. 45, § 3 ; and

XI - the data, the information, and documentation related to the monitoring referred to in item VIII of the caput of Art. 44 .

Sole Paragraph. For the purposes of the provisions in items IX and XI of the caput , the deadline must be counted from the date of implementation of the aforementioned mechanisms." (NR)

"Art. 51. ...........................................................................................................

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III - the deadlines for communication of unavailability cases referred to in Art. 25;

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IX - other requirements and operational procedures for compliance with this Joint Resolution;

X - .................................................................................................................

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b) implementation of Open Finance ; and

XI - other aspects necessary for the implementation of Open Finance , in accordance with the legal competencies of the Central Bank of Brazil.

........................................................................................................................." (NR)

Art. 4 The item III of Art. 49 of Joint Resolution No. 1, of 2020, is hereby revoked.

Art. 5 This Joint Resolution enters into force on May 2, 2022.

Roberto de Oliveira Campos Neto President of the Central Bank of Brazil