Circular No. 2195 — Establishes Criteria for the Administration of Consortium Groups

CIRCULAR NO. 2195

ESTABLISHES CRITERIA FOR THE ADMINISTRATION OF CONSORTIUM GROUPS.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, BASED ON LAW NO. 8,177, OF MARCH 1, 1991, HAS DECIDED:

ART. 1. TO ESTABLISH THAT, FOR THE PURPOSE OF CONSTITUTING GROUPS OF MOTOR VEHICLE CONSORTIUMS REFERENCED IN CARS, PICKUP TRUCKS, AND UTILITY VEHICLES, OF NATIONAL AND FOREIGN PRODUCTION, THE ADMINISTRATOR:

I - MUST BE WITHIN THE MINIMUM LIMITS OF PAID-IN CAPITAL AND NET EQUITY ESTABLISHED IN THE CURRENT REGULATIONS, AS WELL AS THE LIMIT SET OUT IN ITEM 59 OF PORTARIA NO. 190, OF OCTOBER 27, 1989, OF THE MINISTRY OF ECONOMY, FINANCE, AND PLANNING;

II - MUST NOT HAVE ANY PENDING ISSUES:

A - OF DELIVERY OF GOODS, AS PER THE CURRENT REGULATIONS;

B - OF REMITTAL, TO THE CENTRAL BANK, OF FINANCIAL STATEMENTS AND DATA RELATING TO ITS OPERATIONS, AS REGULATED IN CIRCULARS NO. 2,009, OF AUGUST 8, 1991, NO. 2,071, OF OCTOBER 31, 1991, AND NO. 2,166, OF APRIL 28, 1992;

III - MUST APPLY TO THE CENTRAL BANK -- WHICH WILL CONSIDER THE DATA FROM THE BALANCE SHEET AS OF JUNE 30, 1992, AND COMPLIANCE WITH CURRENT REGULATORY STANDARDS -- FOR AUTHORIZATION TO OPERATE AT ONE OF THE FOLLOWING LEVELS OF OPERATION, ACCORDING TO THE RATIO BETWEEN THE ADJUSTED NET EQUITY (ANE) AND THE MINIMUM REQUIRED CAPITAL (MRC) FOR A CONSORTIUM ADMINISTRATOR OF MOVABLE PROPERTY:

• LEVEL 1: ANE EQUAL TO OR GREATER THAN ONE TIMES AND LESS THAN FOUR TIMES THE MRC;

• LEVEL 2: ANE EQUAL TO OR GREATER THAN FOUR TIMES AND LESS THAN TEN TIMES THE MRC;

• LEVEL 3: ANE EQUAL TO OR GREATER THAN TEN TIMES AND LESS THAN TWENTY TIMES THE MRC;

• LEVEL 4: ANE EQUAL TO OR GREATER THAN TWENTY TIMES AND LESS THAN FORTY TIMES THE MRC;

• LEVEL 5: ANE EQUAL TO OR GREATER THAN FORTY TIMES THE MRC.

SINGLE PARAGRAPH 1. IN THE CASE OF AFFILIATED ADMINISTRATORS, AS PER ART. 6 OF THE REGULATION ANNEXED TO CIRCULAR NO. 2,163, OF APRIL 20, 1992, WITH THE AMENDMENT INTRODUCED BY CIRCULAR NO. 2,178, OF MAY 20, 1992, ONLY ONE MAY APPLY FOR OPERATION AT ONE OF LEVELS 2, 3, 4, OR 5 SET OUT IN ART. 1, ITEM III, WITH THE OTHERS OPERATING AT LEVEL 1.

SINGLE PARAGRAPH 2. AN ADMINISTRATOR THAT WISHES TO OPERATE AT A LEVEL HIGHER THAN ITS CURRENT CLASSIFICATION MUST APPLY FOR RECLASSIFICATION, WHICH WILL BE PROCESSED BASED ON THE DATA FROM THE MOST RECENT SEMESTRAL BALANCE SHEET AVAILABLE TO THE AGENCY.

SINGLE PARAGRAPH 3. FAILURE TO OBSERVE, AT ANY TIME, THE MINIMUM ADJUSTED NET EQUITY LIMIT ESTABLISHED FOR THE LEVEL OF OPERATION AT WHICH IT IS CLASSIFIED WILL RESULT IN THE AUTOMATIC RECLASSIFICATION OF THE ADMINISTRATOR.

ART. 2. THE TOTAL CORRESPONDING TO THE SUM OF THE NUMBER OF SUBSCRIBED BUT UNAWARDED QUOTAS PLUS THE NUMBER OF AWARDED QUOTAS FOR WHICH THE RELEVANT GOODS HAVE NOT YET BEEN DELIVERED, REFERENCED IN CARS, PICKUP TRUCKS, AND UTILITY VEHICLES OF NATIONAL PRODUCTION, ATTRIBUTED TO THE SET OF CONSORTIUM ADMINISTRATORS, WILL CORRESPOND TO A PERCENTAGE OF THE AVERAGE, PERIODICALLY VERIFIED BY THE CENTRAL BANK, OF SALES OF THESE VEHICLES IN THE DOMESTIC MARKET.

SINGLE PARAGRAPH 1. BY REASON OF THE PROVISIONS OF THIS ARTICLE, EACH ADMINISTRATOR, ACCORDING TO THE LEVEL OF OPERATION AT WHICH IT IS CLASSIFIED, MAY NOT, AT ANY TIME, PRESENT THE TOTAL CORRESPONDING TO THE SUM OF THE NUMBER OF SUBSCRIBED BUT UNAWARDED QUOTAS PLUS THE NUMBER OF AWARDED QUOTAS FOR WHICH THE RELEVANT GOODS HAVE NOT YET BEEN DELIVERED, REFERENCED IN THE MENTIONED VEHICLES, EXCEEDING:

• LEVEL 1: ONE THOUSAND QUOTAS;

• LEVEL 2: TWO THOUSAND QUOTAS;

• LEVEL 3: FOUR THOUSAND QUOTAS;

• LEVEL 4: EIGHT THOUSAND QUOTAS;

• LEVEL 5: TWENTY THOUSAND QUOTAS.

SINGLE PARAGRAPH 2. ADMINISTRATORS CLASSIFIED AT LEVEL 5, CONTROLLED BY MANUFACTURERS, MAY, ALTERNATIVELY TO THE LIMIT SET OUT IN THE PREVIOUS PARAGRAPH, ISSUE QUOTAS IN A NUMBER SUFFICIENT TO FORM GROUPS THAT PROVIDE FOR MONTHLY AWARDING OF GOODS UP TO A CEILING TO BE FIXED SEMI-ANNUALLY BY THE CENTRAL BANK, WHICH SHALL NOT EXCEED 5% (FIVE PERCENT) OF THE VOLUME OF THE AVERAGE MONTHLY PRODUCTION OF THE CONTROLLING ENTITY DESTINED TO THE DOMESTIC MARKET VERIFIED IN THE PREVIOUS SEMESTER.

ART. 3. THE CENTRAL BANK MAY SUMMARY DENY REQUESTS FOR AUTHORIZATION SET OUT IN ITEM III AND SINGLE PARAGRAPH 2 OF ART. 1, ALWAYS WHEN IT DETERMINES IRREGULARITIES AGAINST THE ADMINISTRATOR OR ITS ADMINISTRATORS, CHARACTERIZED BY NON-OBSERVANCE OF LEGISLATION AND CURRENT REGULATORY STANDARDS, OR WHEN IT FINDS PENDING ISSUES WITH CONSUMER PROTECTION AGENCIES.

ART. 4. ALL QUOTAS FOR MOTOR VEHICLES REFERENCED IN CARS, PICKUP TRUCKS, AND UTILITY VEHICLES, OF NATIONAL OR FOREIGN MANUFACTURE, PREVIOUSLY AUTHORIZED, ARE CANCELLED, EXCEPT FOR ACTIVE SUBSCRIPTIONS.

ART. 5. FROM THE DATE OF PUBLICATION OF THIS CIRCULAR, AUTHORIZATION TO ADMINISTER CONSORTIUM GROUPS REFERENCED IN MOVABLE AND IMMOVABLE PROPERTY WILL ONLY BE GRANTED TO COMPANIES THAT HAVE THE EXCLUSIVE CORPORATE PURPOSE OF ADMINISTERING CONSORTIUMS.

SINGLE PARAGRAPH 1. ADMINISTRATORS ALREADY AUTHORIZED TO ADMINISTER CONSORTIUM GROUPS THAT DO NOT HAVE THE EXCLUSIVE CORPORATE PURPOSE OF ADMINISTERING CONSORTIUMS MAY BE AUTHORIZED AS PER ITEM III AND SINGLE PARAGRAPH 2 OF ART. 1, AND WILL BE AUTOMATICALLY RECLASSIFIED TO LEVEL 1 AS OF JUNE 30, 1993.

SINGLE PARAGRAPH 2. COMPANIES AUTHORIZED TO ADMINISTER CONSORTIUM GROUPS AFTER THE PUBLICATION OF THIS CIRCULAR WILL BE CLASSIFIED AT LEVEL 1 OF OPERATION, WITH THE OPTION TO APPLY FOR OPERATION AT A HIGHER LEVEL ONLY AFTER DELIVERY OF A SEMESTRAL BALANCE SHEET TO THE CENTRAL BANK.

SINGLE PARAGRAPH 3. THE PROVISIONS OF THIS ARTICLE DO NOT APPLY TO NON-PROFIT CIVIL ASSOCIATIONS THAT ADMINISTER OR REQUEST AUTHORIZATION TO ADMINISTER CONSORTIUM GROUPS.

ART. 6. NON-PROFIT CIVIL ASSOCIATIONS AUTHORIZED TO ADMINISTER CONSORTIUM GROUPS OR THAT MAY BE AUTHORIZED IN THE FUTURE WILL BE CLASSIFIED EXCLUSIVELY AT LEVEL 2 OF OPERATION.

SINGLE PARAGRAPH. THE COMPANIES IN QUESTION ARE EXEMPT FROM COMPLIANCE WITH THE REQUIREMENTS CONTAINED IN CIRCULAR NO. 2,009, OF AUGUST 8, 1991, IN ARTS. 1, 2, 3, AND 4 OF CIRCULAR NO. 2,027, OF AUGUST 28, 1991, AND IN ART. 4 OF CIRCULAR NO. 2,074, OF OCTOBER 31, 1991.

ART. 7. THIS CIRCULAR ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION.

BRASILIA (DF), JUNE 30, 1992

PEDRO LUIZ BODIN DE MORAES
DIRECTOR