BCB Resolution No. 367

BCB RESOLUTION NO. 367, OF JANUARY 25, 2024

Amends BCB Resolutions Nos. 2, 5, 6, 7, 8, and 9, of August 12, 2020; 13, of September 9, 2020; 15, of September 17, 2020; 33, of October 29, 2020; 59, of December 23, 2020; 66, of January 26, 2021; 92, of May 6, 2021; 120, of July 27, 2021; 146, of September 28, 2021; 168, of December 1, 2021; and 170, of December 9, 2021, to include securities brokerage companies, securities distribution companies, and foreign exchange brokerage companies authorized to operate by the Central Bank of Brazil within their scopes of application.

The Collegiate Board of the Central Bank of Brazil, in a session held on January 23, 2024, based on arts. 9º-A, items I and II, of Law No. 4,728, of July 14, 1965, 6º and 7º, item III, of Law No. 11,795, of October 8, 2008, 9º, items II and IX, letter "b", and 15 of Law No. 12,865, of October 9, 2013,

RESOLVES:

Art. 1º The summary of BCB Resolution No. 2, of August 12, 2020, shall be amended as follows:

"Provides for the general criteria for the preparation and disclosure of individual and consolidated financial statements by consortium administrators, payment institutions, securities brokerage companies, securities distribution companies, and foreign exchange brokerage companies authorized to operate by the Central Bank of Brazil, and provides for the procedures for the preparation, disclosure, and submission of financial statements that must be observed by financial institutions and other institutions authorized to operate by the Central Bank of Brazil." (NR)

Art. 2º BCB Resolution No. 2, of 2020, shall be amended as follows:

"Art. 1º This Resolution provides for:

I - the general criteria for the preparation and disclosure of individual and consolidated financial statements by the following institutions authorized to operate by the Central Bank of Brazil:

a) consortium administrators;

b) payment institutions;

c) securities brokerage companies;

d) securities distribution companies; and

e) foreign exchange brokerage companies; and

II - the procedures for the preparation, disclosure, and submission of individual and consolidated financial statements that must be observed by financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

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

“TITLE II

GENERAL CRITERIA FOR THE PREPARATION AND DISCLOSURE OF FINANCIAL STATEMENTS BY CONSORTIUM ADMINISTRATORS, PAYMENT INSTITUTIONS, SECURITIES BROKERAGE COMPANIES, SECURITIES DISTRIBUTION COMPANIES, AND FOREIGN EXCHANGE BROKERAGE COMPANIES” (NR)

"Art. 2º The institutions mentioned in item I of the caput of art. 1º must prepare and disclose the following annual financial statements, relative to the fiscal year, and semi-annual, relative to the semesters ending on June 30 and December 31:

.........................................................................................................................

§ 3º The institutions mentioned in item I of the caput of art. 1º that are not registered as public companies and that have net equity below R$2,000,000.00 (two million reais), on the reference date of December 31 of the immediately preceding fiscal year, are exempt from preparing and disclosing the Statement of Cash Flows.

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(NR)

"Art. 3º The institutions mentioned in item I of the caput of art. 1º that, under current regulations, have dependencies abroad must disclose the financial statements mentioned in art. 2º with the consolidated position of operations carried out in the country and abroad." (NR)

"Art. 5º In the preparation and disclosure of financial statements and respective explanatory notes, the institutions mentioned in item I of the caput of art. 1º must observe, in addition to what is provided in this Resolution, the following technical pronouncements of the Accounting Pronouncements Committee (CPC):

.........................................................................................................................

§ 5º It is optional for the institutions mentioned in item I of the caput of art. 1º that are not registered as public companies to observe what is provided in Technical Pronouncement CPC 41.

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(NR)

"Art. 6º The institutions mentioned in item I of the caput of art. 1º that, voluntarily or by virtue of legal, statutory, or contractual provisions, prepare and disclose interim financial statements must disclose the set of financial statements provided for in arts. 2º and 4º:

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

"Art. 7º In the preparation of interim financial statements, the institutions mentioned in item I of the caput of art. 1º must apply the same criteria, procedures, practices, and accounting policies applied in the semi-annual and annual statements." (NR)

"Art. 8º The institutions mentioned in item I of the caput of art. 1º must, in the preparation and disclosure of the financial statements covered by this Chapter, appropriately represent the financial and asset position, performance, and cash flows of the institution, in accordance with the definitions and recognition criteria for assets, liabilities, revenues, and expenses provided for in specific regulation.

§ 1º For the purposes of what is provided in the caput, the institutions mentioned in item I of the caput of art. 1º must:

.........................................................................................................................

§ 3º The institutions mentioned in item I of the caput of art. 1º, when observing what is provided in item II of § 1º, may not hide information in a way that reduces the clarity and understandability of their financial statements.

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(NR)

"Art. 9º The institutions mentioned in item I of the caput of art. 1º must declare in explanatory notes, explicitly and without reservation, that the financial statements are in compliance with the regulation issued by the Central Bank of Brazil." (NR)

"Art. 10-A. Securities brokerage companies, securities distribution companies, and foreign exchange brokerage companies registered as public companies or that are leaders of prudential conglomerates classified in Segment 1 (S1), Segment 2 (S2), or Segment 3 (S3), according to specific regulation, must prepare consolidated annual financial statements adopting the international accounting standard according to pronouncements issued by the International Accounting Standards Board (IASB), translated into Portuguese by a Brazilian entity accredited by the International Financial Reporting Standards Foundation (IFRS Foundation).

§ 1º What is provided in the caput also applies to:

I - the institution not registered as a public company, leader of a group integrated by an institution registered as a public company; and

II - the institution leading an economic group that meets the criteria provided for in specific regulation for classification in S1, S2, and S3.

§ 2º In the preparation of the consolidated financial statements referred to in the caput, the effective date of validity of pronouncements issued by the IASB must be observed.

§ 3º Early adoption of the pronouncements provided for in the caput is conditioned to provision in a norm of the Central Bank of Brazil." (NR)

"Art. 11. The institutions mentioned in item I of the caput of art. 1º that disclose or publish consolidated financial statements, voluntarily or by virtue of legal, regulatory, statutory, or contractual provisions, must adopt the international accounting standard in the preparation of these statements, as provided for in arts. 10 and 10-A.

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(NR)

"Art. 12. The institutions mentioned in item I of the caput of art. 1º must inform, in explanatory notes to the financial statements covered by this Chapter, any differences existing between the criteria, procedures, and rules for identification, classification, recognition, and measurement applied in consolidated statements and those applied in individual financial statements relative to the same accounting period." (NR)

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

Sole Paragraph. If the institution mentioned in item I of the caput of art. 1º discloses its financial statements again with alterations, voluntarily or by determination of the Central Bank of Brazil in the exercise of its legal attributes, the facts determining the new disclosure must be informed in explanatory notes." (NR)

"Art. 16. The Central Bank of Brazil may determine that the institutions mentioned in item I of the caput of art. 1º carry out a new disclosure of the financial statements covered by this Resolution, with the corrections necessary for the appropriate representation of asset and result items and cash flows.

Sole Paragraph. The institutions mentioned in item I of the caput of art. 1º must make the new disclosure in the same communication media used for the first disclosure, with the same prominence and with explicit mention in explanatory notes of the facts determining the new disclosure." (NR)

"Art. 18. The institutions mentioned in item I of the caput of art. 1º must keep at the disposal of the Central Bank of Brazil, for at least five years, the information, data, consolidation maps, documents, inquiries, verifications, and questions necessary for the adequate evaluation of active and passive operations and risks assumed by consolidated entities, regardless of their nature or operational activity." (NR)

Art. 3º The summary of BCB Resolution No. 5, of August 12, 2020, shall be amended as follows:

"Provides for the criteria for accounting recognition and measurement of non-financial assets held for sale by consortium administrators, payment institutions, securities brokerage companies, securities distribution companies, and foreign exchange brokerage companies authorized to operate by the Central Bank of Brazil." (NR)

Art. 4º BCB Resolution No. 5, of 2020, shall be amended as follows:

"Art. 1º This Resolution establishes the accounting criteria for recognition and measurement of non-financial assets held for sale by the following institutions authorized to operate by the Central Bank of Brazil:

I - consortium administrators;

II - payment institutions;

III - securities brokerage companies;

IV - securities distribution companies; and

V - foreign exchange brokerage companies." (NR)

"Art. 3º The non-financial assets held for sale referred to in item I of art. 2º must be reclassified to the adequate current asset account line, on the date on which the institution mentioned in art. 1º decides to sell them.

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(NR)

"Art. 4º The non-financial assets held for sale referred to in item II of art. 2º must be initially recognized in the adequate account line of current asset or long-term realizable non-current asset, according to the expected term of sale, on the date of receipt by the institution mentioned in art. 1º.

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§ 3º For the purposes of what is provided in the caput, the date of receipt is considered the date on which the institution mentioned in art. 1º obtained possession, dominion, and control of the asset.

§ 4º The measurement method referred to in § 1º also applies to the initial measurement of non-financial assets received in liquidation of difficult or doubtful financial instruments that the institution mentioned in art. 1º has decided to allocate for its own use." (NR)

"Art. 6º The institutions mentioned in art. 1º must reevaluate the fair value of non-financial assets held for sale, net of selling expenses, whenever there is evidence or new facts indicating a significant reduction in this value.

§ 1º The institutions mentioned in art. 1º must evaluate, at least annually, if there is evidence or new facts indicating a significant reduction in the value referred to in the caput.

§ 2º If the fair value determined according to the caput is lower than the asset value, measured according to § 1º of art. 3º and § 1º of art. 4º or determined in the last reevaluation, the institution mentioned in art. 1º must recognize the difference as a loss due to impairment of the recoverable amount of the asset.

§ 3º The institutions mentioned in art. 1º may recognize the gain due to an increase in the fair value net of selling expenses of the asset occurring subsequent to the reevaluation referred to in the caput, limited to the accumulated impairment loss recognized in previous periods." (NR)

"Art. 8º If the non-financial asset held for sale is put into use by the institution mentioned in art. 1º in its activities, the asset must be reclassified to the adequate accounting group:

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

"Art. 9º The Central Bank of Brazil may determine adjustments in the models adopted by the institutions mentioned in art. 1º for fair value assessment of non-financial assets held for sale, if it identifies inadequacy in the definition of these models, including regarding discount rates to present value and expected terms of sale of these assets." (NR)

"Art. 10. The institutions mentioned in art. 1º must keep at the disposal of the Central Bank of Brazil the documentation that clearly and objectively evidences the criteria used for the measurement of non-financial assets held for sale, for a minimum period of five years, counted from the date of measurement, or for a longer period due to legal or regulatory determination." (NR)

"Art. 11. The institutions mentioned in art. 1º must apply what is provided in this Resolution prospectively from the date of its entry into force." (NR)

Art. 5º The summary of BCB Resolution No. 6, of August 12, 2020, shall be amended as follows:

"Provides for the criteria and procedures for accounting recognition and recording of components of fixed assets for use by consortium administrators, payment institutions, securities brokerage companies, securities distribution companies, and foreign exchange brokerage companies authorized to operate by the Central Bank of Brazil." (NR)

Art. 6º BCB Resolution No. 6, of 2020, shall be amended as follows:

"Art. 1º This Resolution establishes the criteria and procedures for accounting recognition and measurement of components of fixed assets for use by the following institutions authorized to operate by the Central Bank of Brazil:

I - consortium administrators;

II - payment institutions;

III - securities brokerage companies;

IV - securities distribution companies; and

V - foreign exchange brokerage companies." (NR)

"Art. 2º The institutions mentioned in art. 1º must record in fixed assets for use tangible goods owned and improvements made on third-party properties, intended for the maintenance of their activities or that have this purpose for a period superior to one fiscal year." (NR)

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

.........................................................................................................................

III - the initial estimate of costs for dismantling and removing the asset and restoring the location where it is located, if the institution mentioned in art. 1º assumes the obligation to bear such costs upon acquisition of the asset.

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(NR)

"Art. 5º
............................................................................................................

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Sole Paragraph. The estimated value of any obligation assumed by the institution mentioned in art. 1º in the donation operation must be recognized in the liability as a counterpart to the period's result." (NR)

"Art. 7º ............................................................................................................

§ 1º .................................................................................................................

III - residual value, the estimated value that the institution mentioned in art. 1º would obtain with the sale of the asset, after deducting estimated selling expenses, if the asset already had the expected conditions for the end of its useful life; and

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

"Art. 9º The institutions mentioned in art. 1º must transfer from fixed assets for use to current assets, at the lower value between book value and market value deducted from costs necessary for sale:

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(NR)

Art. 7º The summary of BCB Resolution No. 7, of August 12, 2020, shall be amended as follows:

"Provides for the criteria and procedures for accounting recognition and measurement of components of intangible assets and prohibits the recording of deferred assets by consortium administrators, payment institutions, securities brokerage companies, securities distribution companies, and foreign exchange brokerage companies authorized to operate by the Central Bank of Brazil." (NR)

Art. 8º BCB Resolution No. 7, of 2020, shall be amended as follows:

"Art. 1º This Resolution establishes the criteria and procedures for accounting recognition and measurement of components of intangible assets and prohibits the recording of deferred assets by the following institutions authorized to operate by the Central Bank of Brazil:

I - consortium administrators;

II - payment institutions;

III - securities brokerage companies;

IV - securities distribution companies; and

V - foreign exchange brokerage companies." (NR)

"Art. 2º The institutions mentioned in art. 1º must register in intangible assets identifiable non-monetary assets without physical substance, acquired or developed by the institution, intended for the maintenance of the institution or exercised with this purpose.

Sole Paragraph.
..............................................................................................

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II -
.....................................................................................................................

a) the asset that can be separated and sold, transferred, licensed, rented, or exchanged, individually or together with a related contract, asset, or liability, regardless of the intention of use by the institution mentioned in art. 1º; or

b) the asset that results from contractual rights or other legal rights, regardless of whether such rights are transferable or separable from the institution mentioned in art. 1º, or from other rights and obligations; and

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(NR)

"Art. 3º The recognition of intangible assets developed by the institutions mentioned in art. 1º depends on the simultaneous occurrence of the following conditions:

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§ 3º The recognition of intangible assets developed by the institution itself relating to brands, publication titles, and customer lists is prohibited." (NR)

"Art. 5º ............................................................................................................

.........................................................................................................................

Sole Paragraph. The estimated value of any obligation assumed by the institution mentioned in art. 1º in the asset donation operation must be recognized in the liability as a counterpart to the period's result." (NR)

"Art. 6º ............................................................................................................

Sole Paragraph. The recognition in assets of any expenditure subsequent to the recognition of intangible assets relating to brands, publication titles, logos, customer lists, and items of similar nature, acquired or developed by the institution mentioned in art. 1º, is prohibited." (NR)

"Art. 7º ............................................................................................................

§ 1º .................................................................................................................

.........................................................................................................................

II -
.....................................................................................................................

a) the intended use of an asset by the institution mentioned in art. 1º;

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(NR)

Art. 8º The useful life of the intangible asset resulting from contractual rights or legal rights must not exceed the term of validity of these rights, and may be shorter, depending on the period during which the institution mentioned in art. 1º expects to use the asset.

"Art. 9º The amortization must cease on the date the asset is written off or on the date the institution mentioned in Art. 1 decides to discontinue the use of the asset in its activities, whichever occurs first." (NR)

"Art. 10. .............................................................................................................

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§ 4º The institution mentioned in Art. 1 must verify, at least at the end of each fiscal year, whether the condition referred to in § 1 remains in effect.

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

"Art. 12. If the institution mentioned in Art. 1 decides to discontinue the use of an intangible asset in its activities, the asset must be written off, or, if it can be sold, transferred to the appropriate current asset account at the lower of carrying amount and market value less costs necessary for sale." (NR)

"Art. 13. Institutions mentioned in Art. 1 are prohibited from recording deferred assets." (NR)

Art. 9º The summary of BCB Resolution No. 8, of August 12, 2020, shall henceforth read as follows:

"Provides for the criteria and conditions for measurement, recognition, and disclosure of share-based payment transactions by consortium administrators, payment institutions, securities brokerage firms, securities distribution firms, and foreign exchange brokerage firms authorized to operate by the Central Bank of Brazil." (NR)

Art. 10. BCB Resolution No. 8, of 2020, shall henceforth read as follows:

"Art. 1º The institutions authorized to operate by the Central Bank of Brazil listed below must observe Technical Pronouncement CPC 10 (R1) – Share-Based Payment, approved by the Accounting Pronouncements Committee (CPC) on December 3, 2010, in the measurement, recognition, and disclosure of share-based payment transactions:

I - consortium administrators;

II - payment institutions;

III - securities brokerage firms;

IV - securities distribution firms; and

V - foreign exchange brokerage firms.

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§ 2º References to other CPC pronouncements in the text of Pronouncement CPC 10 (R1) must be interpreted, for the purposes of this Resolution, as references to other pronouncements of the Committee that have been received by specific act of the Central Bank of Brazil, as well as to provisions of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif) that establish accounting criteria related to the pronouncements referenced." (NR)

Art. 11. The summary of BCB Resolution No. 9, of August 12, 2020, shall henceforth read as follows:

"Consolidates the criteria for recognition, measurement, and disclosure of provisions, contingent liabilities, and contingent assets by consortium administrators, payment institutions, securities brokerage firms, securities distribution firms, and foreign exchange brokerage firms authorized to operate by the Central Bank of Brazil." (NR)

Art. 12. BCB Resolution No. 9, of 2020, shall henceforth read as follows:

"Art. 1º The institutions authorized to operate by the Central Bank of Brazil listed below must observe Technical Pronouncement CPC 25, issued by the Accounting Pronouncements Committee (CPC) on June 26, 2009, in the recognition, measurement, and disclosure of provisions, contingent liabilities, and contingent assets:

I - consortium administrators;

II - payment institutions;

III - securities brokerage firms;

IV - securities distribution firms; and

V - foreign exchange brokerage firms.

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§ 2º References to other CPC pronouncements in the text of Pronouncement CPC 25 must be interpreted, for the purposes of this Resolution, as references to other pronouncements of the Committee received by specific act of the Central Bank of Brazil, as well as to provisions of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif) that establish accounting criteria related to the pronouncements referenced." (NR)

"Art. 2º The institutions mentioned in Art. 1 must keep available to the Central Bank of Brazil, for a period of five years, all documentation related to the procedures used for the recognition, measurement, and disclosure of provisions, contingent liabilities, and contingent assets." (NR)

Art. 13. The summary of BCB Resolution No. 13, of September 9, 2020, shall henceforth read as follows:

"Consolidates the general accounting criteria applicable to consortium administrators, payment institutions, securities brokerage firms, securities distribution firms, and foreign exchange brokerage firms in extrajudicial liquidation regime, the accounting procedures applicable to institutions authorized to operate by the Central Bank of Brazil in extrajudicial liquidation regime in the preparation and disclosure of financial statements, and the procedures for accounting recording and disclosure of information regarding assets comprising asset portfolios and obligations from the issuance of Guaranteed Real Estate Notes (LIG) by the issuing institution of LIG and by the fiduciary agent in the cases of decree of intervention, extrajudicial liquidation, or bankruptcy of the issuing institution, or recognition of its insolvency status by the Central Bank of Brazil." (NR)

Art. 14. BCB Resolution No. 13, of 2020, shall henceforth read as follows:

"Art. 1º This Resolution consolidates:

I - the general accounting criteria applicable to the institutions listed below in extrajudicial liquidation regime in their accounting records:

a) consortium administrators;

b) payment institutions;

c) securities brokerage firms;

d) securities distribution firms; and

e) foreign exchange brokerage firms;

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

“CHAPTER II

GENERAL CRITERIA APPLICABLE TO
CONSORTIUM ADMINISTRATORS, PAYMENT INSTITUTIONS, SECURITIES BROKERAGE FIRMS, SECURITIES DISTRIBUTION FIRMS, AND FOREIGN EXCHANGE BROKERAGE FIRMS

Section I

Common Criteria” (NR)

"Art. 2º The institutions mentioned in item I of the main text of Art. 1 must prepare opening financial statements for the extrajudicial liquidation regime as of the date of its decree.

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

"Art. 3º In preparing the opening financial statements and other statements prepared during the maintenance of the extrajudicial liquidation regime, the institutions mentioned in item I of the main text of Art. 1 must observe the following accounting criteria:

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V - contingent liabilities, including those related to contingencies, must be established and updated, so that they represent the best estimate of the probable future outflow value, considering the situation of discontinuity of the institution; and

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

"Art. 8º The Central Bank of Brazil may, without prejudice to other applicable measures, determine the new preparation and submission of the financial statements referred to in this Resolution, with the necessary corrections, for the adequate expression of the institution's patrimonial, economic, and financial reality." (NR)

"Art. 9º In cases where the accounting of the institution mentioned in item I of the main text of Art. 1 does not offer conditions of security and reliability for the adequate verification of its patrimonial, economic, and financial situation, the liquidator must prepare special opening financial statements for the liquidation based on a general inventory of assets, rights, and obligations." (NR)

"Art. 11-A. Securities brokerage firms, securities distribution firms, and foreign exchange brokerage firms in extrajudicial liquidation regime are exempt from preparing and submitting the consolidated prudential conglomerate accounting documents." (NR)

Art. 15. The summary of BCB Resolution No. 15, of September 17, 2020, shall henceforth read as follows:

"Consolidates the general criteria for measurement and recognition of current and deferred fiscal assets and liabilities, applicable to consortium administrators, payment institutions, securities brokerage firms, securities distribution firms, and foreign exchange brokerage firms authorized to operate by the Central Bank of Brazil, and the procedures to be observed by institutions authorized to operate by the Central Bank of Brazil in presenting a request for exemption from the criterion for establishing deferred fiscal assets or for their write-off and in disclosing information in explanatory notes." (NR)

Art. 16. BCB Resolution No. 15, of 2020, shall henceforth read as follows:

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

I - the general criteria for measurement and recognition of current and deferred fiscal assets and liabilities, applicable to the following institutions authorized to operate by the Central Bank of Brazil:

a) consortium administrators;

b) payment institutions;

c) securities brokerage firms;

d) securities distribution firms; and

e) foreign exchange brokerage firms; and

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

“CHAPTER II

GENERAL CRITERIA APPLICABLE TO
CONSORTIUM ADMINISTRATORS, PAYMENT INSTITUTIONS, SECURITIES BROKERAGE FIRMS, SECURITIES DISTRIBUTION FIRMS, AND FOREIGN EXCHANGE BROKERAGE FIRMS” (NR)

"Art. 3º The institutions mentioned in item I of the main text of Art. 1 must recognize as:

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Sole Paragraph. The provisions of the main text apply, inclusive, to presumed credits assessed by payment institutions, securities brokerage firms, securities distribution firms, and foreign exchange brokerage firms based on credits resulting from temporary differences, in accordance with current legislation." (NR)

"Art. 4º The institutions mentioned in item I of the main text of Art. 1 must record deferred fiscal assets resulting from temporary differences, Income Tax for Legal Entities (IRPJ) losses, and negative base for Social Contribution on Net Profit (CSLL) only when cumulatively meeting the following conditions:

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§ 1º The provisions of this article must be observed individually by the institutions mentioned in item I of the main text of Art. 1.

§ 2º The provisions of item II of the main text do not apply to the institutions mentioned in item I of the main text of Art. 1 that:

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

"Art. 5º ............................................................................................................

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III - the existence of doubts regarding the operational continuity of the institution.

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

"Art. 6º ............................................................................................................

Sole Paragraph. The institutions mentioned in item I of the main text of Art. 1 are authorized to maintain tax credits linked to the requests provided for in the main text while there is no manifestation by the Central Bank of Brazil." (NR)

"Art. 7º The institutions mentioned in item I of the main text of Art. 1 must recognize deferred fiscal liabilities resulting from temporary differences in the period in which the corresponding revenues or equity variations are recognized." (NR)

"Art. 9º The values of deferred fiscal assets and liabilities must be offset only in cases where the institution mentioned in item I of the main text of Art. 1 has the legal right of offset at the time of settlement of the tax obligation, provided there is compatibility of deadlines in the forecast of realization and enforceability." (NR)

Art. 17. The summary of BCB Resolution No. 33, of October 29, 2020, shall henceforth read as follows:

"Provides for the criteria for the accounting measurement and recognition of investments in affiliates, controlled entities, and jointly controlled entities maintained by consortium administrators, payment institutions, securities brokerage firms, securities distribution firms, and foreign exchange brokerage firms authorized to operate by the Central Bank of Brazil, and the procedures for disclosure in explanatory notes of information related to these investments by institutions authorized to operate by the Central Bank of Brazil." (NR)

Art. 18. BCB Resolution No. 33, of 2020, shall henceforth read as follows:

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

I - the criteria for the accounting measurement and recognition by institutions authorized to operate by the Central Bank of Brazil listed below of investments in affiliate entities, controlled entities, and jointly controlled entities, in Brazil and abroad, including acquisition operations, incorporation, merger, and spin-off of entities, in which they are part:

a) consortium administrators;

b) payment institutions;

c) securities brokerage firms;

d) securities distribution firms; and

e) foreign exchange brokerage firms; and

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

“TITLE II

CRITERIA APPLICABLE TO
CONSORTIUM ADMINISTRATORS, PAYMENT INSTITUTIONS, SECURITIES BROKERAGE FIRMS, SECURITIES DISTRIBUTION FIRMS, AND FOREIGN EXCHANGE BROKERAGE FIRMS" (NR)

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

.........................................................................................................................

III - ....................................................................................................................

a) the asset that can be separated and sold, transferred, licensed, leased, or exchanged, individually or together with a contract, related asset, or liability, regardless of the institution's intention to use it; or

b) the asset that results from contractual rights or other legal rights, regardless of whether such rights are transferable or separable from the institution, or from other rights and obligations;

IV - affiliate: entity over which the investing institution has significant influence;

V - controlled: entity over which the investing institution has control, directly or indirectly;

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VII - control: situation in which the investing institution is exposed to, or has rights to, variable returns arising from its involvement with the investee and has the ability to affect those returns through its power over the investee;

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XI - reverse incorporation: incorporation operation in which the incorporated entity holds participation in the capital of the incorporating institution;

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XVIII - .................................................................................................................

a) entities that are not part of the same economic group as the institution; and

b) natural persons who are not controlling, directly or indirectly, entities that are part of the same economic group as the institution;

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XX - ..................................................................................................................

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b) accounting criteria materially different from those provided in the current accounting regulation applicable to the institutions mentioned in item I of the main text of Art. 1;

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

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

Sole Paragraph. If the new assessment results in a discount, the institution mentioned in item I of the main text of Art. 1 must recognize as non-operating revenue the lower discount calculated in the assessments mentioned in the main text." (NR)

"Art. 7º In assessing participations in affiliate, controlled, and jointly controlled entities abroad, prior to the application of the equity method, the institutions mentioned in item I of the main text of Art. 1 must:

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

"Art. 8º The institutions mentioned in item I of the main text of Art. 1 must consider, in designating the functional currency of each investee abroad, cumulatively, the following factors:

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§ 2º The functional currency of the institutions mentioned in item I of the main text of Art. 1 that operate in the country must be the national currency.

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

"Art. 10. If investees abroad carry out transactions in a currency different from their respective functional currencies, the institutions mentioned in item I of the main text of Art. 1 must convert, upon initial recognition, individually, transactions in foreign currency to the functional currency by applying, on the foreign currency amount, the spot exchange rate on the date of the transaction.

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

"Art. 11. The institutions mentioned in item I of the main text of Art. 1 must convert, upon preparation of the trial balance or balance sheet, individually, transactions in foreign currency to the functional currency by the exchange rate:

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

"Art. 12. If the functional currency of the investee abroad is different from the national currency, the institutions mentioned in item I of the main text of Art. 1 must convert the balances of the financial statements of these entities from the functional currency to the national currency, observing that:

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

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

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§ 6º If the value of the investor's share in the investee's losses exceeds the carrying amount of the investment, the institutions mentioned in item I of the main text of Art. 1 must recognize the difference between these values against any long-term asset receivable from the investee that, in essence, is part of the investment in an affiliate, controlled, or jointly controlled entity, according to the priority defined for its settlement.

§ 7º If the value of the difference referred to in § 6º exceeds the value of the operations mentioned therein, the institutions mentioned in item I of the main text of Art. 1 must recognize a liability, according to specific regulation, unless the absence of obligations to third parties is proven.

§ 8º The institutions mentioned in item I of the main text of Art. 1 that do not recognize a liability due to the provisions of § 7º may only resume recognizing positive equity method results of the investee in amounts exceeding the unrecognized losses.

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

"Art. 14. After making the adjustments referred to in Art. 13, the institutions mentioned in item I of the main text of Art. 1 must assess whether there is objective evidence of impairment of the recoverable amount of the carrying amount of the equity participation, according to specific regulation.

§ 1º .................................................................................................................

.........................................................................................................................

II - to the carrying amount of the institution's equity participation in the investee, if there is no balance related to goodwill.

---"

Art. 17.

§ 1º The institutions mentioned in item I of the caput of Art. 1 must define in their accounting policy the expected term for the disposal of the investments referred to in the caput.

§ 2º The investments referred to in the caput that are not sold within the period defined by the institution, pursuant to § 1º, must be recognized and valued according to the standards contained in Sections I, II, and III of this Chapter, retrospectively to the date of acquisition of the investment.

Art. 18. In merger, consolidation, and spin-off operations involving the acquisition or transfer of participation, prior to the recognition of these operations, the institutions mentioned in item I of the caput of Art. 1 must:

Sole paragraph. For the purposes of the provision in the caput, the acquirer is considered to be the institution that obtains control of the merged entity or of the entity resulting from the merger or spin-off.

Art. 23. Institutions mentioned in item I of the caput of Art. 1 involved in merger, consolidation, and spin-off operations must observe the following procedures for the publication and submission of financial statements to the Central Bank of Brazil:

§ 1º The acquiring institutions and those resulting from merger or spin-off operations must:

Art. 24. Institutions mentioned in item I of the caput of Art. 1 must retain for a minimum period of five years, or for a longer period due to express determination by the Central Bank of Brazil, the following documents:

I - in the case of institutions involved in merger, consolidation, and spin-off operations:

Art. 28.

Sole paragraph.

XI -

a) Art. 13, § 7º, of this Resolution, for the institutions mentioned in item I of the caput of Art. 1 of this Resolution; and

XII -

a) Art. 13, § 8º, of this Resolution, for the institutions mentioned in item I of the caput of Art. 1 of this Resolution; and

Art. 19. The summary of BCB Resolution No. 59, of December 23, 2020, shall be amended as follows:

"Provides for the general criteria for measurement and recognition of social and labor obligations by consortium administrators, payment institutions, securities brokerage firms, securities distribution firms, and currency exchange brokers authorized to operate by the Central Bank of Brazil."

Art. 20. BCB Resolution No. 59, of 2020, shall be amended as follows:

"Art. 1º This Resolution provides for the general criteria for measurement and recognition of social and labor obligations by the following institutions authorized to operate by the Central Bank of Brazil:

I - consortium administrators;

II - payment institutions;

III - securities brokerage firms;

IV - securities distribution firms; and

V - currency exchange brokers."

"Art. 2º The institutions mentioned in Art. 1 must recognize, monthly, upon preparation of balance sheets or financial statements, as liabilities, the values due for the current period and previous periods relating to:

Sole paragraph. In the monthly recognition of obligations related to vacation, thirteenth salary, premium leave, and other known or calculable charges, the institutions mentioned in Art. 1 must include values resulting from future salary increases provided for by law, contract, or collective labor agreement and in their internal policy."

"Art. 3º The institutions mentioned in Art. 1 must observe Technical Pronouncement CPC 33 (R1) – Employee Benefits, approved by the Accounting Pronouncements Committee (CPC) on December 7, 2012, in the measurement, recognition, and disclosure of employee benefits.

§ 4º The institutions mentioned in Art. 1 that utilize the option provided in § 3º must:"

Art. 21. The summary of BCB Resolution No. 66, of January 26, 2021, shall be amended as follows:

"Provides for the general criteria for the accounting recording of equity of consortium administrators, payment institutions, securities brokerage firms, securities distribution firms, and currency exchange brokers authorized to operate by the Central Bank of Brazil and for the procedures to be observed by institutions authorized to operate by the Central Bank of Brazil in the accounting recording of increases and reductions in share capital."

Art. 22. BCB Resolution No. 66, of 2021, shall be amended as follows:

"Art. 1º ...

I - the general criteria for the accounting recording of equity of the following institutions authorized to operate by the Central Bank of Brazil:

a) consortium administrators;

b) payment institutions;

c) securities brokerage firms;

d) securities distribution firms; and

e) currency exchange brokers; and"

“CHAPTER II

OF THE CRITERIA APPLICABLE TO CONSORTIUM ADMINISTRATORS, PAYMENT INSTITUTIONS, SECURITIES BROKERAGE FIRMS, SECURITIES DISTRIBUTION FIRMS, AND CURRENCY EXCHANGE BROKERS”

"Art. 2º The equity of the institutions mentioned in item I of the caput of Art. 1 is divided into:

"Art. 3º The institutions mentioned in item I of the caput of Art. 1 must record share capital at the value fixed in their bylaws or articles of association."

"Art. 4º The institutions mentioned in item I of the caput of Art. 1 must record an increase in share capital deliberated in a shareholders' meeting or quotists' assembly/meeting, while not yet approved by the Central Bank of Brazil, in a segregated account in Equity.

"Art. 5º The institutions mentioned in item I of the caput of Art. 1 must record, at net value of transaction costs, the full or partial subscription of share capital resulting from the subscription of shares or quotas in a segregated share capital account, in counterpart to the appropriate asset account."

"Art. 7º The institutions mentioned in item I of the caput of Art. 1 must record a reduction in share capital deliberated in a shareholders' meeting or quotists' assembly/meeting, while not yet authorized by the Central Bank of Brazil, in a segregated account in Equity."

"Art. 8º The institutions mentioned in item I of the caput of Art. 1 must record in equity the following reserves, according to criteria defined in current legislation and regulation:

"Art. 9º The institutions mentioned in item I of the caput of Art. 1 must classify in other comprehensive income, at net value of any tax effects, items of revenue and expense not recognized in the period's result according to specific regulation, including asset valuation adjustments."

"Art. 10. The institutions mentioned in item I of the caput of Art. 1 must record the net result of the period in the appropriate retained earnings or accumulated losses account, and the balance:

"Art. 11. The institutions mentioned in item I of the caput of Art. 1 must recognize treasury shares at acquisition cost, as a deduction from the appropriate equity account that records the source of resources applied in their acquisition."

"Art. 12. The institutions mentioned in item I of the caput of Art. 1 must write off alienated treasury shares at their acquisition cost, with a view to determining profit or loss.

"Art. 13. The institutions mentioned in item I of the caput of Art. 1 must recognize in liabilities, in counterpart to the appropriate retained earnings or reserves account, the remuneration of capital that constitutes a present obligation on the date of the balance sheet or financial statement.

"Art. 14. The institutions mentioned in item I of the caput of Art. 1 must record, separately, as a special reserve of earnings, in counterpart to the appropriate retained earnings or accumulated losses or reserves account, at net value of any tax effects:

Art. 18. …

§ 2º The institutions mentioned in item I of the caput of Art. 1 that, on the date mentioned in the caput, maintain balances of reserves not provided for in this Resolution may:

Art. 23. The summary of BCB Resolution No. 92, of May 6, 2021, shall be amended as follows:

"Provides for the use of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif) by consortium administrators, payment institutions, securities brokerage firms, securities distribution firms, and currency exchange brokers authorized to operate by the Central Bank of Brazil and for the structure of the Cosif chart of accounts to be observed by financial institutions and other institutions authorized to operate by the Central Bank of Brazil."

Art. 24. BCB Resolution No. 92, of 2021, shall be amended as follows:

"Art. 1º ...

I - the use of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif) by the following institutions authorized to operate by the Central Bank of Brazil:

a) consortium administrators;

b) payment institutions;

c) securities brokerage firms;

d) securities distribution firms; and

e) currency exchange brokers; and"

“CHAPTER II

OF OBSERVANCE OF COSIF BY CONSORTIUM ADMINISTRATORS, PAYMENT INSTITUTIONS, SECURITIES BROKERAGE FIRMS, SECURITIES DISTRIBUTION FIRMS, AND CURRENCY EXCHANGE BROKERS”

"Art. 2º The institutions mentioned in item I of the caput of Art. 1 must observe the accounting standards emanating from the Central Bank of Brazil, embodied in Cosif, in accounting bookkeeping, recognition, measurement, and disclosure.

§ 1º Consortium administrators must observe the standards referred to in the caput in the accounting bookkeeping, recognition, measurement, and disclosure of administered groups.

§ 2º The criteria and procedures embodied in Cosif, as well as the existence of accounting lines, do not presuppose permission for the practice of operations or services prohibited by law, regulation, or administrative act, or dependent on prior authorization by the Central Bank of Brazil."

"Art. 3º The institutions mentioned in item I of the caput of Art. 1 must use a chart of accounts defined by the Central Bank of Brazil according to their type."

Art. 25. The summary of BCB Resolution No. 120, of July 27, 2021, shall be amended as follows:

"Provides for the general principles for accounting recognition, measurement, bookkeeping, and disclosure by consortium administrators, payment institutions, securities brokerage firms, securities distribution firms, and currency exchange brokers authorized to operate by the Central Bank of Brazil and for specific procedures for the application of these principles by financial institutions and other institutions authorized to operate by the Central Bank of Brazil."

Art. 26. BCB Resolution No. 120, of 2021, shall be amended as follows:

"Art. 1º ...

I - the general principles for accounting recognition, measurement, bookkeeping, and disclosure by the following institutions authorized to operate by the Central Bank of Brazil:

a) consortium administrators;

b) payment institutions;

c) securities brokerage firms;

d) securities distribution firms; and

e) currency exchange brokers; and"

“CHAPTER II

OF THE GENERAL PRINCIPLES APPLICABLE TO CONSORTIUM ADMINISTRATORS, PAYMENT INSTITUTIONS, SECURITIES BROKERAGE FIRMS, SECURITIES DISTRIBUTION FIRMS, AND CURRENCY EXCHANGE BROKERS AUTHORIZED TO OPERATE BY THE CENTRAL BANK OF BRAZIL”

"Art. 2º The institutions mentioned in item I of the caput of Art. 1 must observe the following technical pronouncements of the Accounting Pronouncements Committee (CPC) in accounting recognition, measurement, and disclosure:

"Art. 4º The institutions mentioned in item I of the caput of Art. 1 must convert, individually, foreign currency transactions into the national currency:

"Art. 5º The institutions mentioned in item I of the caput of Art. 1, in the conversion of transactions and financial statements in foreign currency into the national currency, must use the spot exchange rate informed by the Central Bank of Brazil for the purpose of balance sheets or financial statements.

§ 3º The institutions mentioned in item I of the caput of Art. 1 that utilize the option provided in § 1º must:

"Art. 6º The institutions mentioned in item I of the caput of Art. 1, in the measurement of assets and liabilities for which there is no specific regulation emanating from the Central Bank of Brazil, must measure:

"Art. 8º

I - complete, comprising all events, transactions, and administrative acts and facts occurred on the date to which it refers, which modify or will modify, immediately or not, the institutional composition;

§ 2º The institutions mentioned in item I of the caput of Art. 1 must perform the necessary reconciliations of accounting titles with their respective analytical controls and keep them updated, and the respective documentation must be archived for at least one year.

"Art. 9º

§ 1º If the institution uses coded histories, it must include in each daily movement the respective coding table or file containing memory of the coding tables used.

"Art. 11. The institutions mentioned in item I of the caput of Art. 1 must maintain, in electronic or physical form, the Daily Journal or the Daily Balances and Balance Sheets books and other mandatory books, legalized in the competent body, in observance of legal and regulatory provisions."

"Art. 12. The institutions mentioned in item I of the caput of Art. 1 that adopt the Daily Journal must bookkeep the Ledger in such a way as to allow identification, at any time, of the composition of account balances.

"Art. 13. The institutions mentioned in item I of the caput of Art. 1 that adopt the Daily Balances and Balance Sheets books must maintain analytical controls that allow identification, at any time, of the composition of account balances."

"Art. 14. If the institution mentioned in item I of the caput of Art. 1 opts to replace the Daily Journal with the Daily Balances and Balance Sheets book, it must:

"Art. 19. The provision of inaccurate information, the lack or delay of accounting reconciliations, and bookkeeping maintained in arrears for a period exceeding fifteen days subsequent to the closing of each month, or processed in disagreement with standards emanating from the Central Bank of Brazil, place the institution mentioned in item I of the caput of Art. 1, its administrators, members of the board of directors, board of administration, fiscal council, audit committee, and other bodies provided for in the bylaws or articles of association of the institution subject to applicable penalties, in accordance with the law."

"Art. 21. The institutions mentioned in item I of the caput of Art. 1 must designate before the Central Bank of Brazil a director, technically qualified, responsible for compliance with standards relating to accounting recognition, measurement, bookkeeping, and disclosure.

"Art. 22. For purposes of classification, measurement, recognition, bookkeeping, and accounting disclosure, the social year has a duration of one year, ending on December 31, a date that must be fixed in the bylaws or articles of association of the institution mentioned in item I of the caput of Art. 1."

Art. 27. The summary of BCB Resolution No. 146, of September 28, 2021, shall be amended as follows:

"Provides for the general criteria for preparation and submission of accounting documents to the Central Bank of Brazil by consortium administrators, payment institutions, securities brokerage firms, securities distribution firms, and currency exchange brokers authorized to operate by the Central Bank of Brazil and for specific procedures to be observed by financial institutions and other institutions authorized to operate by the Central Bank of Brazil in the preparation and submission of accounting documents to the Central Bank of Brazil."

Art. 28. BCB Resolution No. 146, of 2021, shall be amended as follows:

"Art. 1º ...

I - the general criteria for preparation and submission of accounting documents to the Central Bank of Brazil by the following institutions authorized to operate by the Central Bank of Brazil:

a) consortium administrators;

b) payment institutions;

c) securities brokerage firms;

d) securities distribution firms; and

e) currency exchange brokers; and"

“TITLE II

---

GENERAL CRITERIA FOR THE PREPARATION AND SUBMISSION OF ACCOUNTING DOCUMENTS APPLICABLE TO CONSORTIUM ADMINISTRATORS, PAYMENT INSTITUTIONS, SECURITIES BROKERAGE COMPANIES, SECURITIES DISTRIBUTION COMPANIES, AND FOREIGN EXCHANGE BROKERAGE COMPANIES AUTHORIZED TO OPERATE BY THE CENTRAL BANK OF BRAZIL

CHAPTER I

OF ACCOUNTING DOCUMENTS” (NEW)

"Art. 2º-A Securities brokerage companies, securities distribution companies, and foreign exchange brokerage companies must prepare and submit to the Central Bank of Brazil the following accounting documents:

I - individual:

a) Analytical Balance Sheet, with monthly frequency; and

b) Analytical Balance Sheet, with semi-annual frequency, for the base dates of June 30 and December 31; and

II - consolidated:

a) Analytical Balance Sheet - Prudential Conglomerate, with monthly frequency;

b) Balance Sheet - Prudential Conglomerate, with semi-annual frequency, for the base dates of June 30 and December 31; and

c) Report of the Prudential Conglomerate, with semi-annual frequency, for the base dates of June 30 and December 31.

§ 1º In addition to the documents provided for in the caput:

I - the institution that has branches in the country must prepare, monthly, the Analytical Balance Sheet by branch; and

II - the institution that has branches abroad or participations in entities abroad that are part of the prudential conglomerate must prepare and submit to the Central Bank of Brazil, monthly, the Analytical Balance Sheet of these entities.

§ 2º The report referred to in item "c" of item II of the caput must be subject to reasonable assurance by an independent auditor who meets the requirements provided for in the specific regulation for the provision of independent audit services for the institutions mentioned in the caput." (NEW)

"Art. 5º The preparation and submission to the Central Bank of Brazil of the accounting documents referred to in this Chapter are mandatory from the date on which the institution mentioned in item I of the caput of art. 1º is in effective operation.

................................................................................................................" (NEW)

"Art. 6º The accounting documents submitted to the Central Bank of Brazil by the institutions mentioned in item I of the caput of art. 1º must be signed by the director responsible for the accounting of the institution and by a legally qualified accountant." (NEW)

"Art. 7º The board of directors of the institution mentioned in item I of the caput of art. 1º is responsible for forwarding, to the Central Bank of Brazil, the accounting documents referred to in this Resolution within the deadlines provided for in art. 15.

"Art. 9º In the event of substitution of the accounting documents referred to in this Resolution, the institutions mentioned in item I of the caput of art. 1º must:

................................................................................................................" (NEW)

"Art. 10. The institutions mentioned in item I of the caput of art. 1º are subject to the penalties provided for in the current regulation due to non-compliance with the deadlines or conditions for submission of the accounting documents, as well as the sending of incorrect information." (NEW)

"Art. 12-A. Securities brokerage companies, securities distribution companies, and foreign exchange brokerage companies must keep available to the Central Bank of Brazil, for a minimum of five years:

I - the accounting documents provided for in art. 2º-A, § 1º, item I; and

II - the information, data, consolidation maps with respective eliminations, documents, interrogations, verifications, and questions necessary for the adequate assessment of the active and passive operations and the risks assumed by the entities consolidated in the prudential conglomerate, regardless of their nature or operational activity." (NEW)

Art. 29. The summary of Resolution BCB No. 168, of December 1, 2021, shall be in effect with the following alteration:

"Provides for the accounting criteria applicable to payment institutions, securities brokerage companies, securities distribution companies, and foreign exchange brokerage companies authorized to operate by the Central Bank of Brazil in the preparation of the consolidated accounting documents of the prudential conglomerate and on the operational procedures for the preparation of these documents by financial institutions and payment institutions." (NEW)

Art. 30. Resolution BCB No. 168, of 2021, shall be in effect with the following alterations:

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

I - the accounting criteria applicable to institutions authorized to operate by the Central Bank of Brazil listed below in the preparation of the consolidated accounting documents of the prudential conglomerate:

a) payment institutions;

b) securities brokerage companies;

c) securities distribution companies; and

d) foreign exchange brokerage companies; and

................................................................................................................" (NEW)

“TITLE II

OF THE ACCOUNTING CRITERIA APPLICABLE TO PAYMENT INSTITUTIONS, SECURITIES BROKERAGE COMPANIES, SECURITIES DISTRIBUTION COMPANIES, AND FOREIGN EXCHANGE BROKERAGE COMPANIES IN THE PREPARATION OF THE CONSOLIDATED ACCOUNTING DOCUMENTS OF THE PRUDENTIAL CONGLOMERATE” (NEW)

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

I - institution mentioned in item I of the caput of art. 1º that holds control over one or more entities cited in item II; and

................................................................................................................" (NEW)

"Art. 5º The institutions mentioned in item I of the caput of art. 1º, leaders of the prudential conglomerate, must prepare and submit to the Central Bank of Brazil the consolidated accounting documents of the prudential conglomerate, as defined in the specific regulation that deals with the preparation and submission of accounting documents to the Central Bank of Brazil by financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

................................................................................................................" (NEW)

"Art. 8º The institution mentioned in item I of the caput of art. 1º, leader of the prudential conglomerate integrated by entities controlled abroad, preliminarily to consolidation, must, observing the accounting procedures established in specific regulation:

................................................................................................................" (NEW)

"Art. 10. The institution mentioned in item I of the caput of art. 1º, leader of the prudential conglomerate, must reclassify, in the consolidated accounting documents of the prudential conglomerate, to the appropriate intangible asset account, the goodwill for expected future profitability (goodwill) regarding the investment recognized in the individual balance sheet of the investor.

"Art. 11. The institution mentioned in item I of the caput of art. 1º, leader of the prudential conglomerate, must measure the non-controlling interest, proportionally to this interest, at the date of obtaining control of the investee, at the fair value of the identifiable net assets of the controlled entity, as defined in specific regulation.

................................................................................................................" (NEW)

"Art. 12. The institution mentioned in item I of the caput of art. 1º, leader of the prudential conglomerate, in the event of a change in the proportion held by non-controlling interests, without loss of control, must:

................................................................................................................" (NEW)

"Art. 13. The institution mentioned in item I of the caput of art. 1º, leader of the prudential conglomerate, must recognize, in the consolidated accounting documents of the prudential conglomerate, the non-controlling interest in a segregated manner in equity.

................................................................................................................" (NEW)

"Art. 14. It is optional for the institution mentioned in item I of the caput of art. 1º, leader of the prudential conglomerate, to disclose the Financial Statements of the Prudential Conglomerate provided that they are:

................................................................................................................" (NEW)

Art. 31. The summary of Resolution BCB No. 170, of December 9, 2021, shall be in effect with the following alteration:

"Provides for the criteria to be observed by consortium administrators, payment institutions, securities brokerage companies, securities distribution companies, and foreign exchange brokerage companies authorized to operate by the Central Bank of Brazil in the recognition, measurement, and accounting disclosure of investment properties and non-financial assets acquired for the purpose of future sale and generation of profits based on variations in their prices in the market." (NEW)

Art. 32. Resolution BCB No. 170, of 2021, shall be in effect with the following alterations:

"Art. 1º This Resolution establishes accounting criteria to be observed by consortium administrators, payment institutions, securities brokerage companies, securities distribution companies, and foreign exchange brokerage companies authorized to operate by the Central Bank of Brazil in the recognition, measurement, and disclosure of:

................................................................................................................" (NEW)

"Art. 2º The institutions mentioned in the caput of art. 1º that, in legally permitted cases, maintain investment properties must observe Technical Pronouncement CPC 28 – Investment Property, approved by the Accounting Pronouncements Committee (CPC) on June 26, 2009, for the measurement, recognition, and disclosure of these assets.

.................................................................................................................

§ 4º .................................................................................................................

I - intended for use by controlled entities or by the controlling entity of the institution mentioned in the caput of art. 1º; and

................................................................................................................" (NEW)

"Art. 3º Non-financial assets acquired by the institutions mentioned in the caput of art. 1º for the purpose of future sale and generation of profits based on variations in their prices in the market must be initially recognized at the cash acquisition price, plus transaction costs.

................................................................................................................" (NEW)

"Art. 5º If the non-financial asset ceases to meet the conditions referred to in art. 3º, the institution mentioned in the caput of art. 1º must reclassify it to the appropriate accounting group at fair value on the date of reclassification.

................................................................................................................" (NEW)

"Art. 6º The Central Bank of Brazil may determine adjustments in the models adopted by the institutions mentioned in the caput of art. 1º for fair value assessment of the assets referred to in this Resolution, if it identifies inadequacy in the definition of these models." (NEW)

"Art. 7º The institutions mentioned in the caput of art. 1º must keep available to the Central Bank of Brazil the documentation that clearly and objectively evidences the criteria used for the measurement of the assets referred to in this Resolution, for a minimum period of five years, counted from the date of measurement, or for a longer period due to legal or regulatory determination." (NEW)

"Art. 9º The institutions mentioned in the caput of art. 1º must apply the provisions of this Resolution prospectively from the date of its entry into force.

................................................................................................................" (NEW)

Art. 33. The sole paragraph of art. 2º of Resolution BCB No. 92, of 2021, is revoked.

Art. 34. This Resolution enters into force on March 1, 2024.

OTÁVIO RIBEIRO DAMASO
Director of Regulation