Central Bank of Brazil Instruction Normative No. 474 of May 23, 2024

Resolution No. 222

CENTRAL BANK OF BRAZIL INSTRUCTION NORMATIVE NO. 474, OF MAY 23, 2024

Amends Instruction Normative BCB No. 311 of October 19, 2022, which establishes the procedures for submitting 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 Head of the Financial System Monitoring Department (Desig), in the exercise of the authority conferred by Article 23, item I, letter “a” of the Internal Regulations of the Central Bank of Brazil, published through BCB Resolution No. 340 of September 21, 2023, based on Article 85, item I, letter “b” of said Regulations, and considering the provisions in CMN Resolutions Nos. 4,858 of October 23, 2020, 4,911 of May 27, 2021, 4,924 of June 24, 2021, and 4,966 of November 25, 2021, in BCB Resolutions Nos. 92 of May 6, 2021, 120 of July 27, 2021, 146 of September 28, 2021, and 352 of November 23, 2023, and in BCB Instruction Normatives Nos. 426, 427, 428, 429, 430, 431, 432 and 433, all of December 1, 2023,

RESOLVES:

Art. 1. The new versions of the filling instructions and the layout of document 4076 - Prudential Conglomerate Report (RCP), available on the Central Bank of Brazil website at the electronic address https://www.bcb.gov.br/estabilidadefinanceira/leiautedocumentoscrd, shall enter into force, effective from the January 2025 reporting base, with the modification regarding the alteration of the accounting items of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif), as defined in BCB Instruction Normatives Nos. 426, 427, 428, 429, 430, 431, 432 and 433, all of December 1, 2023.

Art. 2. Instruction Normative BCB No. 311 of October 19, 2022, shall enter into force, effective from the January 2025 reporting base, with the following alterations:

“Art. 2. ............................................................................................................

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

§ 7. The preparation of the documents referred to in this article must be done observing the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif) defined in BCB Instruction Normatives Nos. 426, 427, 428, 429, 430, 431, 432 and 433, all of December 1, 2023.” (NR)

Art. 3. .............................................................................................................

I - ......................................................................................................................

a) Statement of Financial Position, governed by letter “a” of item I of Article 16 of BCB Resolution No. 146 of 2021, containing the balances of asset items, segregated into the following groups:

1. Current assets and long-term receivables;

2. Non-current assets;

3. Current liabilities and long-term payables; and

4. Shareholders' equity;

b) Statement of Comprehensive Income, governed by letter “b” of item I of Article 16 of BCB Resolution No. 146 of 2021, containing the accumulated values for the semester regarding revenues, expenses, and other comprehensive income, segregated into the following items and intermediate result lines:

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

c) Statement of Changes in Shareholders' Equity, governed by letter “c” of item I of Article 16 of BCB Resolution No. 146 of 2021, containing the events and values of variations verified during the semester in the following groups and breakdowns:

.........................................................................................................................” (NR)

Art. 3. This Instruction Normative enters into force on January 1, 2025.

ANDRÉ MAURÍCIO TRINDADE DA ROCHA

NOTE

The accounting document 4076 - Prudential Conglomerate Report (RCP), created based on CMN Resolution No. 4,911 of May 27, 2021, and BCB Resolution No. 146 of September 28, 2021, and governed by Instruction Normative 311 of October 19, 2022, is prepared by financial institutions and other institutions authorized to operate by the Central Bank of Brazil belonging to the prudential conglomerate, on a consolidated basis, and must be submitted by the lead institution of each of these conglomerates to this Autarchy in accordance with the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif).

2. CMN Resolution No. 4,966 of November 25, 2021, and BCB Resolution No. 352 of November 23, 2023, concluded the process of harmonizing the accounting standards provided for in the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif) with the international pronouncement IFRS 9 – Financial Instruments issued by the International Accounting Standards Board (IASB). To allow for the accounting bookkeeping in the Cosif chart of accounts to be aligned with the criteria and accounting procedures established in the regulation issued by the CMN and the BCB, it was necessary to alter the items of said chart of accounts, which culminated in the issuance of BCB Instruction Normatives (INs) Nos. 426, 427, 428, 429, 430, 431, 432 and 433, all of 2023. With the issuance of these INs, there was a significant alteration of the Cosif, with the inclusion of one more level in its list of accounts, moving from the current 5 levels to 6, which is being called Cosif version 1.5. As a direct consequence of this alteration, it is necessary to alter document 4076 so that it can reflect the new list of accounts starting from the January 2025 reporting base, considering that the aforementioned INs enter into force on January 1, 2025.

3. Decree No. 10,411 of June 30, 2020, regulates the conduct of regulatory impact analysis (RIA) as a prerequisite for the issuance of normative acts. However, in its Article 4, the Decree establishes the hypotheses for dispensing with the conduct of RIA. The present BCB IN falls within the hypotheses provided for in items II - normative act intended to discipline rights or obligations defined in a hierarchically superior norm that does not allow, technically or legally, different regulatory alternatives; and III - normative act considered to have low impact.

4. Considering the issuance of the normative acts cited in paragraph 2 and aiming to allow institutions to correctly calculate and report the Prudential Conglomerate Report (RCP), there is no other alternative but to alter document 4076, thus justifying the classification of the present Instruction Normative under item II of Article 4 of Decree No. 10,411 of 2020. Furthermore, the alteration treated in paragraph 2 will not alter documents already submitted, only adding a level to the accounts already reported, and this will have a little relevant impact for the current senders, which also justifies its classification under item III of Article 4 of said Decree.

5. Thus, based on the provisions of paragraphs 3 and 4, I understand that the issuance of the present Instruction Normative is exempt from the conduct of RIA.

ANDRÉ MAURÍCIO TRINDADE DA ROCHA
Head of the Financial System Monitoring Department (Desig)