Circular Letter No. 3851 — Details Accounting Items for Calculating the Permanent Asset Investment Limit for Institutions Opting for Simplified Reference Equity (PRS5)

The Head of the Prudential and Exchange Regulation Department (Dereg), acting in substitution, under the powers conferred by Article 23, item I, letter “a”; and Article 118, item I, letter “a” of the Internal Regulations of the Central Bank of Brazil, annexed to Ordinance No. 95,818, of December 4, 2017, and considering the provisions of Article 11, sole paragraph, of Resolution No. 4,606, of October 19, 2017,

R E S O L V E:

Art. 1° In calculating the limit for investment in Permanent Assets, as provided in Article 14 of Resolution No. 4,606, of October 19, 2017, the PRS5 calculated in accordance with Article 8 of the aforementioned Resolution must be considered, minus the sum of the values of the following accounts:

I - 2.1.4.10.10-5 - Stock Exchanges;

II - 2.1.4.10.20-8 - Commodities and Futures Exchanges;

III - 2.1.4.10.30-1 - CETIP;

IV - 2.1.4.99.00-9 - (-) PROVISION FOR LOSSES ON EQUITY INSTRUMENTS;

V - 2.1.5.10.10-8 - Clearing and Custody Companies Linked to Exchanges;

VI - 2.1.5.99.10-5 - (-) Clearing and Custody Companies Linked to Exchanges.

Art. 2° For the purposes of calculating the limit set forth in Article 1°, the value of resources invested in Permanent Assets, recorded in account 2.0.0.00.00-4 - Permanent Assets, must be deducted from the values related to:

I - accounting items mentioned in Article 1°, items I to VI;

II - investments in central cooperatives, corresponding to the sum of the values of the following accounts:

a) 2.1.5.30.05-4 - Participation in Central Credit Cooperative;

b) 2.1.5.30.10-2 - Participation in Financial Institution Controlled by Credit Cooperative;

c) 2.1.5.30.20-5 - Participation in Companies Controlled by Central Credit Cooperative;

d) 2.1.5.99.20-8 - (-) Others;

III - prudential adjustments deducted from PRS5 recorded in Permanent Assets, whose values correspond to the accounts mentioned in Article 1°, items XI, XII, XIV, and XIX, of Circular Letter 3,850, of December 19, 2017.

Art. 3º This Circular Letter enters into force on February 18, 2018.

Jaildo Lima de Oliveira