Central Bank of Brazil Instruction Normative No. 421 of November 23, 2023

Resolution No. 222

CENTRAL BANK OF BRAZIL INSTRUCTION NORMATIVE NO. 421, OF NOVEMBER 23, 2023

Amends
Instruction Normative BCB No. 311, of October 19, 2022, which establishes the procedures for sending the Prudential Conglomerate Report governed by CMN Resolution No. 4,911, of May 27, 2021, and BCB Resolution No. 146, of September 28, 2021.

The Heads of the Financial System Monitoring Department (Desig), the Strategic Management and Specialized Supervision Department (Degef), the Cooperatives and Non-Bank Institutions Supervision Department (Desuc) and the Bank Supervision Department (Desup), in the exercise of the authority conferred upon them by art. 23, item I, letter “a”, of the Internal Regulations of the Central Bank of Brazil, annexed to BCB Resolution No. 340, of September 21, 2023, based, respectively, on arts. 85, item I, letter “b”, 82, item III, letter “b”, 91, item I, letter “a”, and 88, items I and II, of the aforementioned Regulations, and having in view the provisions of CMN Resolutions Nos. 4,911, of May 27, 2021, and 4,924, of June 24, 2021, and BCB Resolutions Nos. 120, of July 27, 2021, 146, of September 28, 2021, and 197, of March 11, 2022,

RESOLVE:

Art. 1º Instruction Normative BCB No. 311, of October 19, 2022, shall be enforced with the following alterations:

“Art. 2º ...………………………………………………………….............................................

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§ 4º The provisions in the main text do not apply to payment institutions, in accordance with § 3º of art. 4º of BCB Resolution No. 146, of 2021, that are:

I - leaders of Type 3 prudential conglomerate classified in Segment 4 (S4) or in Segment 5 (S5); and

II - leaders of Type 2 prudential conglomerate that have total assets, calculated according to the criteria and procedures embodied in the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif), less than or equal to 0.1% (one tenth of one percent) of the Gross Domestic Product (GDP) of Brazil.

§ 5º For the purposes of the provisions in § 4º, the GDP of Brazil as defined in § 4º of art. 4º of BCB Resolution No. 146, of 2021, shall be considered.

§ 6º The information referred to in the main text must be sent starting from the first data base in which the institution authorized to operate by the Central Bank of Brazil is in effective operation.” (NR)

“Art. 3º .........………………………………………………………….......................................

§ 1º For the provision of the information provided for in item II, letter “c”, entities must observe the concept of materiality provided for in the conceptual framework for the preparation and presentation of financial statements, governed by CMN Resolution No. 4,924, of June 24, 2021.

§ 2º As provided for in art. 16, § 3º of BCB Resolution No. 146, of 2021, for reports prepared until the June 2026 data base, the preparation and sending of the information provided for in art. 16, item II, letters “c” to “l” of the aforementioned Resolution are waived.” (NR)

“Art. 4º ..………………………………………………..............…………................................

§ 3º As provided for in art. 20-A of BCB Resolution No. 146, of 2021, payment institutions authorized to operate by the Central Bank of Brazil are exempt from preparing and sending the report governed by this Instruction Normative, for data bases relating to periods ending on or before December 31, 2024.” (NR)

Art. 2º The sole paragraph of art. 3º of Instruction Normative BCB No. 311, of 2022, is revoked.

Art. 3º This Instruction Normative enters into force on December 1, 2023.

GILNEU FRANCISCO ASTOLFI VIVAN ADALBERTO FELINTO DA CRUZ JÚNIOR Head of Desig Head of Degef

HAROLD PAQUETE ESPÍNOLA FILHO BELLINE SANTANA Head of Desuc Head of Desup

NOTE

CMN Resolution No. 4,911, of May 27, 2021, and BCB Resolution No. 146, of September 28, 2021, established the obligation for financial institutions and other institutions authorized to operate by the Central Bank of Brazil, belonging to a prudential conglomerate, excluding consortium administrators, to prepare and send to this Autarchy the Prudential Conglomerate Report (RCP). Instruction Normative BCB (IN BCB) No. 311, of October 19, 2022, establishes the procedures for the semi-annual sending of information related to the RCP, through document code 4076.

2. The present BCB Instruction Normative promotes the following alterations in IN BCB No. 311, of 2022, resulting from the issuance of BCB Resolution No. 311, of April 12, 2023, which amended BCB Resolution No. 146, of 2021:

I - exemption from sending the RCP by payment institutions that are leaders of Type 3 prudential conglomerate classified in Segment 4 (S4) or in Segment 5 (S5);

II - exemption from sending the RCP by payment institutions that are leaders of Type 2 prudential conglomerate that have total assets, calculated according to the criteria and procedures embodied in the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif), less than or equal to 0.1% (one tenth of one percent) of the Gross Domestic Product (GDP) of Brazil;

III - exemption from preparing and sending the RCP by payment institutions authorized to operate by the Central Bank of Brazil, for data bases relating to periods ending on or before December 31, 2024;

IV - exemption for reports prepared until the June 2026 data base, of the information established in letters “c” to “l” of item II of art. 16 of BCB Resolution No. 146, of 2021; and

V - inclusion of a clarifying command that the information must be prepared and sent starting from the first data base in which the institution authorized to operate by the Central Bank of Brazil is in effective operation.

3. Decree No. 10,411, of June 30, 2020, regulates the carrying out of regulatory impact analysis (AIR) as a prerequisite for the issuance of normative acts. However, in its article 4º, the aforementioned decree establishes the hypotheses for exemption from carrying out AIR. The present IN BCB falls under the hypotheses provided for in item III, normative act considered of low impact, and in item VII, normative act that reduces requirements, obligations, restrictions, requests or specifications with the objective of reducing regulatory costs. Thus, based on items III and VII of art. 4º of Decree No. 10,411, of 2020, I understand that the issuance of the present IN BCB is exempt from carrying out AIR.

GILNEU FRANCISCO ASTOLFI VIVAN ADALBERTO FELINTO DA CRUZ JÚNIOR Department of Monitoring of the Department of Strategic Management and Financial System (Desig) Specialized Supervision (Degef)

HAROLD PAQUETE ESPÍNOLA FILHO BELLINE SANTANA Department of Supervision of Department of Supervision of Cooperatives and Non-Bank Banking (Desup) Institutions (Desuc)