Central Bank of Brazil Instruction Normative No. 527 of September 26, 2024

Resolution No. 222

INSTRUCTION NORMATIVE
BCB NO. 527, OF SEPTEMBER 26, 2024

Amends
Instruction Normative BCB No. 94, of April 8, 2021, which consolidates the procedures for sending information about investors in investment funds, as provided for in Resolution BCB No. 38, of November 11, 2020.

The Head of the Department of Financial System Monitoring – Designate, 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 Resolution BCB No. 340, of September 21, 2023, based on Article 85, item I, letter “b” of said Regulations, and considering the provisions of Resolution BCB No. 38, of November 11, 2020,

RESOLVES:

Art. 1º Instruction Normative BCB No. 94, of April 8, 2021, shall enter into force with the following amendments:

“Art. 1º .....................................................................................................................

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

a) regarding the investment fund, its classes and its subclasses:

1. identification;

2. net equity;

3. number of shares;

4. number of investors;

b) ...............................................................................................................................

1. identification of the investor or of the distributor acting on behalf and for the account of;

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

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

a) regarding the investment fund, its classes and its subclasses:

1. identification;

2. number of shares distributed on behalf and for the account of by the distributor sending the information;

3. number of investors holding the shares distributed on behalf and for the account of by the distributor sending the information;

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

Sole Paragraph. The layout, the filling instructions, as well as the other documents necessary for the preparation of the documents referred to in this Instruction Normative are available on the Central Bank’s Internet page, at the electronic address https://www.bcb.gov.br/estabilidadefinanceira/leiautedocumentoscrd.” (NR)

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

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

Sole Paragraph. The indication referred to in the caput must be registered in the System of Information on Entities of Interest to the Central Bank – Unicad, as provided for in Resolution BCB No. 209, of March 22, 2022.” (NR)

Art. 3º The Annex to Instruction Normative BCB No. 94, of April 8, 2021, shall enter into force with the following amendment:

“Annex to Instruction Normative BCB No. 94, of April 8, 2021

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

Deadline for Sending: up to the twelfth day of the month following the reference date;

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

Art. 4º This Instruction Normative enters into force on October 1, 2024.

ANDRÉ MAURÍCIO TRINDADE DA ROCHA

NOTE

The documents with code 5401 - Information on Fund Investors - Data sent by investment fund administrators and 5402 - Information on Fund Investors - Data sent by financial institutions distributing fund shares were created through Instruction Normative BCB No. 94, of April 8, 2021, based on Resolution BCB No. 38, of November 11, 2020, and are used to collect information on fund investors and the respective investment funds.

2. Resolution CVM No. 175, of December 23, 2022, which provides for the constitution, operation, and disclosure of information of investment funds, as well as for the provision of services for funds, altered part of the information that must be provided by investment funds, with validity from October 1, 2024. In light of this, it was necessary to issue Resolution BCB No. 414, of September 19, 2024, amending Resolution BCB No. 38, of 2020, so that information relating to investment funds would also include their classes and subclasses, where applicable. For this purpose, the aforementioned Resolution BCB also excluded the possibility of sending the identification of the custodian when the share is traded on a stock exchange, indicating only the final investor. Consequently, it is necessary to amend the aforementioned Instruction Normative to adapt it to the new list of information to be sent to this Central Bank.

3. During the meetings between this Central Bank and the Brazilian Association of Financial and Capital Markets Entities – Anbima to discuss the changes, this entity requested that documents 5401 and 5402 have their submission deadlines changed from the current deadline of the tenth day of the month following the reference date to the 15th business day of the month following the reference date. After discussions, a consensus was reached to extend the submission deadline to the 12th day of the month following the reference date. It should be noted that this extension of the deadline will not cause harm to the areas that use the information from the aforementioned documents.

4. In light of this, the present Instruction Normative has the following objectives:

I - alter the list of information to be sent through Document 5401, so that the following are reported, regarding investment funds, their classes and subclasses:

a) identification;

c) net equity;

d) number of shares; and

e) number of investors;

II - exclude from Document 5401 the possibility of sending the identification of the central depository, if the share is traded on a stock exchange.

III - alter the list of information to be sent through Document 5402, so that the following are reported, regarding investment funds:

a) identification;

b) number of shares distributed on behalf and for the account of by the distributor sending the information; and

d) number of investors holding the shares distributed on behalf and for the account of by the distributor sending the information;

IV - alter the submission deadline for Documents 5401 and 5402; and

V - update normative reference, without change of merit.

5. It should be noted that the adjustments in question were submitted to the analysis of the Information Governance Office – Eginf, which analyzed the request and submitted it to the Information Governance Committee – CGI, which approved it on July 30, 2024.

6. Furthermore, the changes promoted by this Instruction Normative were discussed with Anbima. In the subsequent meetings, suggestions were presented by that entity, ultimately reaching a good agreement, which resulted in the present proposal.

7. 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 4º, the Decree establishes the hypotheses for dispensing with the RIA. This BCB IN falls under the hypotheses provided for in items IV - normative act that aims to update or revoke norms considered obsolete, without change of merit, V - normative act that aims to preserve liquidity, solvency, or integrity of financial markets, and VII - normative act that reduces requirements, obligations, restrictions, requests, or specifications with the objective of reducing regulatory costs.

8. Resolution CVM No. 175, of 2022, promoted changes in the information relating to investment funds. In light of this, not altering the information sent to this Central Bank would bring a greater cost to the senders, as they would have to maintain in their databases the current form of constitution of funds, only for sending information to the Central Bank, and the new form, as determined by CVM. Thus, the proposed change reduces the requirement for senders to maintain duplicate information of investment funds in their databases, which justifies the classification of this BCB Resolution under item VII of the aforementioned Decree.

9. The exclusion of the possibility of sending the identification of the custodian, when the share is traded on a stock exchange, and the respective indication of the final investor, brings more transparency about who is really the holder of the share, allowing for a more precise mapping of the interconnections existing between economic agents for the purpose of evaluating contagion and systemic risks, aiming to preserve the integrity of the financial market, which justifies its classification under item V of Decree No. 10.411, of 2020.

10. The update of normative reference falls under item IV of Decree No. 10.411, of 2020, as there is no change of merit.

11. Finally, the change in the deadline for submitting Documents 5401 and 5402 was a request from the sending institutions and, with the agreement of the information users, the request was granted.

12. Thus, based on the provisions of paragraphs 7 to 10, I understand that the issuance of this Instruction Normative is exempt from the RIA.

ANDRÉ MAURÍCIO TRINDADE DA ROCHA
Head of the Department of Financial System Monitoring – Designate