Circular No. 4037 — Amends Circular No. 4,032 of June 23, 2020, Regarding the Initial Governance Structure for Open Banking Implementation

The Executive Board of the Central Bank of Brazil, in a session held on July 15, 2020, based on Articles 9 of Law No. 4,595 of December 31, 1964, 15 of Law No. 12,865 of October 9, 2013, and 46, item I, of Joint Resolution No. 1 of May 4, 2020,

R E S O L V E:

Art. 1º Circular No. 4,032 of June 23, 2020, shall enter into force with the following alterations:

"Art. 1º ......................................................

§ 1º The initial structure referred to in the main text must be formalized by July 24, 2020, through a contract signed by the associations or groups of associations representing financial institutions and other institutions authorized to operate by the Central Bank of Brazil that are elected in accordance with the provisions of Article 8 of the Annexed Regulation.

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"Art. 1º-A The Central Bank of Brazil shall incorporate the content of the convention referred to in Article 44 of Joint Resolution No. 1 of May 4, 2020, in whole or in part, into the specific regulation under the responsibility of this Autarchy, to the extent applicable, or shall propose its incorporation into the regulation under the competence of the National Monetary Council." (New)

Art. 2º The Annexed Regulation to Circular No. 4,032 of 2020 shall enter into force with the following alterations:

"Art. 3º ......................................................

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III - approve proposals for technological standards, operational procedures, and other aspects necessary for the implementation of Open Banking in the country, in accordance with Article 44 of Joint Resolution No. 1 of 2020, in the form of a convention;

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"Art. 6º The Deliberative Council of the initial structure referred to in this Regulation shall be composed of up to seven councilors with voting rights in deliberative processes, divided into the following groups:

I - group 1: up to three councilors indicated by associations that, observing the provisions of Article 7, items I and II, letter 'a', have significant representation of institutions providing services related to deposit accounts or retail credit operations, classified in the following segments referred to in Resolution No. 4,553 of January 30, 2017:

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II - group 2: up to three councilors indicated by associations or groups of associations that, observing the provisions of Article 7, items I and II, letter 'b', have significant representation of:

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§ 4º In the event that the association or group of associations elected in accordance with Article 8 formally expresses its withdrawal from participation in the Deliberative Council, the representation of its respective subgroup shall become vacant and shall not count towards the definition of a majority in deliberative processes." (New)

"Art. 12. .....................................................

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§ 2º The principal and alternate councilors indicated in accordance with Article 6 may be replaced at any time by the associations or groups of associations that appointed them, observing the conditions of Article 6, § 2º, by notifying the Secretariat with a minimum advance notice of two business days.

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§ 4º Among the reasons for dismissal referred to in § 3º, the internal regulations must include, at a minimum, the finding of unjustified absences of principal and alternate councilors at two consecutive meetings or at three non-consecutive meetings.

§ 5º The dismissal referred to in § 3º, in the case of associations or groups of associations, implies that the representation of its respective subgroup shall become vacant and shall not count towards the definition of a majority in deliberative processes." (New)

"Art. 13. .....................................................

Sole Paragraph. For the purposes of the provisions in the main text, the Deliberative Council must deliberate on mechanisms for convening extraordinary meetings, observing the need for the consent of at least three councilors for their convening." (New)

"Art. 14. .....................................................

§ 1º Exempt from the provisions in the main text, and to be decided by a qualified majority of councilors, considered as the total number of councilors reduced by one, are deliberations related to:

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Art. 3º This Circular enters into force on the date of its publication.

Otávio Ribeiro Damaso Director of Regulation