Regulatory Alerts2020-05-29 | Resolução CMN 4820CMN Resolution No. 4820 — Establishes Temporary Prohibitions on Remuneration of Equity Capital, Increases in Executive Compensation, Share Buybacks, and Capital Reduction
The Brazilian Central Bank, acting through the National Monetary Council, issued Resolution No. 4820 to impose temporary prudential restrictions on financial institutions to ensure system stability during the Covid-19 pandemic. The resolution prohibits the payment of equity capital remuneration above mandatory minimums, bans share buybacks and capital reductions, and caps executive compensation increases for the 2020 fiscal year. These measures, which revoke the previous Resolution No. 4.797, are designed to preserve capital adequacy and the regular functioning of the National Financial System amid economic uncertainty.
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