Central Bank of Brazil Instruction Normative No. 342 of January 2, 2023

CENTRAL BANK OF BRAZIL INSTRUCTION NORMATIVE NO. 342, OF JANUARY 2, 2023

Amends
Instruction Normative BCB No. 299, of August 30, 2022, which disseminates procedures, documents, deadlines, and information necessary for the processing of authorization requests related to the operation of the institutions covered by CMN Resolution No. 4,970, of November 25, 2021.

The Head of the Department of Financial System Organization (Deorf), using the authority granted by Arts. 23, item I, clause “a”, and 96, item XII, of the Internal Regulations of the Central Bank of Brazil, annexed to Portaria No. 84.287, of February 27, 2015, based on Art. 15 of CMN Resolution No. 5,043, of November 25, 2022, and Art. 35 of BCB Resolution No. 277, of December 31, 2022,

RESOLVES:

Art. 1º The
Instruction Normative BCB No. 299, of August 30, 2022, shall enter into force with the following alterations:

“CHAPTER II
OF THE PROCESSING OF PROCESSES

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Section XVI
Of the Authorization for Participation or Increase in the Percentage of Participation in the Share Capital of Companies Headquartered in the Country or Abroad

Art.
20-A. The authorization request for participation, directly or indirectly, in the share capital of any companies, constituted or to be constituted, headquartered in the country or in the abroad, must be accompanied by the following documents:

I - application, in the form of model Sisorf 8.20.10.18;

II

• a reasoned justification that proves that the entity subject to the
  corporate participation carries out complementary or subsidiary activities to those of the institution holding the participation, in the form of Annex IV, except in the case of corporate participation in institutions supervised by the Central Bank of Brazil or of corporate participation in financial institutions or similar institutions headquartered abroad that constitute control;

III - reasoned justification that proves the adequacy to the operational strategy of the institution, in the case of corporate participation in financial institutions or similar institutions headquartered abroad that constitute control, in the form of Annex IV;

IV - declaration, in model Sisorf 8.20.10.18, that the operational limits established in the current regulation will continue to be met after the implementation of the participation.

Art.
20-B. The authorization request for the increase in the percentage of participation, directly or indirectly, in the share capital of any companies headquartered in the country or abroad, must be accompanied by the following documents:

I - application, in the form of model Sisorf 8.20.10.19;

II - declaration, in model Sisorf 8.20.10.19, that the entity subject to the corporate participation continues to carry out activities complementary or subsidiary to those of the institution holding the participation;

III - declaration, in model Sisorf 8.20.10.19, that the increase in the percentage of participation intended is adequate to the operational strategy of the institution, in the case of corporate participation in financial institutions or similar institutions headquartered abroad that constitute control;

IV - declaration, in model
Sisorf 8.20.10.19, that the operational limits established in the regulation in force will continue to be met after the implementation of the increase in the percentage of participation.

Section XVII
Of the Authorization for Installation of a Branch Abroad

Art.
20-C. The authorization request for installation of a branch abroad must be processed, within a period of up to fifteen days from the respective act or deliberation, with the following documents:

I - application, in the form of model Sisorf 8.20.10.20;

II

• a reasoned justification that proves the
  adequacy to the operational strategy of the institution, in the case of installation of a branch abroad, in the form of Annex IV.

III - declaration, in model Sisorf 8.20.10.20, that the operational limits established in the current regulation will continue to be met after the installation of the branch abroad.

Section XVIII
Of the Authorization and Cancellation of Authorization to Operate in the Foreign Exchange Market

Art.
20-D. The authorization request or cancellation of authorization to operate in the foreign exchange market must be processed, within a period of up to fifteen days from the respective act or deliberation, with the following documents:

I - application, in the form of model Sisorf 8.20.10.21 or 8.20.10.22;

II

• a reasoned justification that proves the
  economic-financial viability of the undertaking, in the case of authorization request to operate in the foreign exchange market, in the form of Annex IV;

III

• declaration, in model Sisorf
  8.20.10.22, that the foreign exchange operations exclusive or permitted to the institution have been settled or transferred, in the case of cancellation request of the authorization to operate in the foreign exchange market.

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ANNEX IV
CONTENT OF THE REASONED JUSTIFICATION

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CHANGE OF CORPORATE OBJECT, CREATION OF PORTFOLIO, LEASING OPERATIONS AND FOREIGN EXCHANGE OPERATIONS

Art. 4º The reasoned justification for the change of corporate object, for the creation of operational portfolio, to operate with leasing or to operate in the foreign exchange market must contain:

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PARTICIPATION IN COMPANIES HEADQUARTERED IN THE COUNTRY OR IN THE ABROAD

Art. 7º The reasoned justification for participation in the share capital of companies headquartered in the country or abroad must contain:

I - an organizational chart that specifies the percentage of participation, direct or indirect, intended by the participating institution in the participated company;

II - transcription of the corporate object provided for in the statutes or articles of association of the participated company and description of its field of activity, with emphasis on complementary or subsidiary activities to those of the institution holding the participation;

III - in the case of participation in a financial institution or similar institution headquartered abroad that constitutes control, demonstration of the adequacy of the shareholding to the business strategy of the participating institution.

INSTALLATION OF A BRANCH ABROAD

Art. 8º The reasoned justification for installation of a branch abroad must contain the demonstration of adequacy to the business strategy of the institution, specifying the planned operational strategy, the types of deposit and lending operations it intends to carry out and the market segments it intends to reach and the profitability expectation, with deadlines and expected return.” (NR)

Art. 2º Articles 1, 5, 6, 7, and 8 of Circular No. 2,981, of April 28, 2000, are hereby repealed.

Art. 3º This Instruction Normative enters into force on date of its publication.

Carolina Pancotto Bohrer

ANNEX

NOTE

This Instruction Normative BCB (IN BCB) aims to disseminate the procedures, documents, and information necessary for the processing of authorization requests covered by:

I - CMN Resolution No. 5,043, of November 25, 2022, which regulates the processes of authorization to participate or increase the percentage of participation in the share capital of companies headquartered in the country or abroad and to install a branch abroad; and

II - BCB Resolution No. 277, of December 31, 2022, which regulates the processes of authorization and cancellation to operate in the foreign exchange market.

2. Decree No. 10,411, of June 30, 2020, regulates the implementation of regulatory impact analysis (AIR) as a prerequisite for the issuance of normative acts.
   However, in its Article 4, the aforementioned decree establishes the hypotheses for waiver of AIR implementation. This IN BCB falls under the hypothesis provided for in item II, as it does not bring any additional requirement to that contained in the current regulation and is intended to clarify the way of fulfilling obligations defined in a hierarchically superior norm. Thus, based on item II of Art. 4 of Decree No. 10,411, of 2020, I understand that the issuance of this IN BCB waives the implementation of AIR.

Carolina Pancotto Bohrer

Head