Circular Letter No. 3479 — Procedures for Credit Cooperatives to Submit Requests for Authorizations under Article 7 of Circular No. 3,508 of 2010

CARTER-CIRCULAR NO. 003479

Dispenses on procedures for the presentation, by credit cooperatives, of requests regarding the authorizations provided for in Article 7 of Circular No. 3,508 of 2010,

In view of the provisions of item "a" of item III of Article 2º-B and of Article 2º-C of Resolution No. 3,490 of August 29, 2007, with wording given by Resolution No. 3,897 of August 25, 2010, and of Article 7 of Circular No. 3,508 of October 19, 2010, we communicate that the requests referred to therein must be forwarded to the Technical Management of the Department of Supervision of Cooperatives and Non-Bank Institutions (Desuc) of the jurisdiction of the requesting institution.

2. Requests regarding item III of Article 2º-B of Resolution No. 3,490 of 2007, from credit cooperatives that have opted for the Full Prudential Regime for calculating the Required Reference Equity (PRE), provided for in the caput of Article 2º, and that wish to return to the Simplified Prudential Regime, provided for in § 4º of Article 2º of the same resolution, before the twelve-month period, must be accompanied, at a minimum, by the following documentation:

I - detailed explanation of the reasons that led the institution to previously opt for the calculation of Required Reference Equity (PRE) under the Full Prudential Regime;

II - justifications for the request to change to the Simplified Prudential Regime;

III - simulation of the impact of the change in PRE calculation methodology over the six months prior and an estimate of the impact over the six months following the request, considering the trend of equity variation, as well as other planned or estimated changes by the institution;

IV - declaration that the institution meets the requirements established in Article 2º-A of Resolution No. 3,490 of 2007;

V - statement from the central cooperative regarding the request, in the case of an affiliated cooperative.

3. Requests regarding Article 2º-C of Resolution No. 3490 of 2007, regarding adherence to the Simplified Prudential Regime, by institutions that do not meet the requirements established in Article 2º-A of the aforementioned resolution, must be accompanied, at a minimum, by the following documentation:

I - detailed explanation of the requirements not met by the institution, specifying:

a) the unmet requirements, the estimated period for return to compliance, or the justifications for the continuation of the operations referred to in items II to VI of Article 2º-A of Resolution No. 3,490 of 2007;

b) the amount of involved values and the representativeness of the operations, relative to total assets, Required Reference Equity (PRE), and Reference Equity (PR), also informing the maximum limit to which such operations may reach, which will serve as a reference for capital highlighting by supervision.

c) the risks involved in the operations, including loss estimates, with a description of the calculations performed, possible mechanisms for monitoring these exposures, and internal control and risk management procedures pertinent to the positions;

d) the link between the operations and the institution's finalistic activities;

II - commitment that the institution, in operations not maintained in the financial centralization account of the respective central, will concentrate its exposures in fixed income, informing the established criteria;

III - commitment to capitalization above the minimum required levels, informing the values, conditions, and period of the commitment, relating them to the unmet requirements;

IV - consent of the central cooperative, if an affiliated cooperative, through the opinion cited in the sole paragraph of Article 2º-C of Resolution No. 3,490 of 2007.

4. Credit cooperatives opting for the Simplified Prudential Regime, if they intend to carry out the operations cited in items II to VI of Article 2º-A of Resolution No. 3,490 of 2007, without modifying the prudential regime, must request prior authorization, forwarding the documentation in accordance with paragraph 3 of this circular letter.

5. Credit cooperatives opting for the Simplified Prudential Regime whose asset growth has resulted in exceeding the limit on the base date, according to item I of Article 2º-A of Resolution No. 3,490 of 2007, and Article 5 of Circular No. 3,508 of October 19, 2010, must request authorization in accordance with paragraph 3 of this circular letter, if they intend to remain in the aforementioned regime from the following year.

6. Credit cooperatives that have opted for the Full Prudential Regime and wish to return to the Simplified Prudential Regime before twelve months and without meeting the conditions established in Article 2º-A of Resolution No. 3,490 of 2007, must justify their request in accordance with paragraphs 2 and 3 above, excluding the declaration provided for in item IV of paragraph 2.

7. The documentation cited in the previous items must be accompanied by a letter signed by the members of the Board of Directors or the Administrative Council.

8. The Technical Management of Desuc may:

I - request complementary documentation for the analysis of the requests cited in this circular letter; and

II - condition the authorization provided for in paragraph 3 of this circular letter on the implementation of additional controls regarding the risk referred to in item c of item I of paragraph 3, or on a capitalization commitment higher than that proposed by the institution in item III of the same paragraph.

9. This circular letter enters into force on the date of its publication.

Brasília, January 7, 2011.

Department of Supervision of Cooperatives and Non-Bank Institutions

José Ângelo Mazzillo Júnior
Chief