Regulatory Alerts2020-05-04 | Circular 4016Circular No. 4016 — Regulates the Bookkeeping of Book-Entry Promissory Notes, the Electronic Bookkeeping System, and the Centralized Registration, Deposit, and Negotiation of These Credit Instruments
The Central Bank of Brazil issued Circular No. 4016 to regulate the bookkeeping, centralized registration, deposit, and negotiation of book-entry promissory notes (duplicatas escriturais). The regulation mandates that authorized entities operate electronic bookkeeping systems with specific interoperability standards and financial settlement procedures, while requiring a formal convention to define operational rules and fee structures among participants. It establishes strict authorization requirements for bookkeepers, including minimum net worth for registrars, and sets a compliance deadline of 180 days following the convention's approval.
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