Circular No. 2467 — Provisions on Shareholding Participation of Consortium Administrators

CIRCULAR NO. 002467

Provisions on Shareholding Participation of Consortium Administrators.

The Board of Directors of the Central Bank of Brazil, in a session held on 17.08.94, based on Article 33 of Law No. 8.177, of 1st.03.91,

D E C I D E D:

Art. 1st Revoke Article 6 of the Regulation annexed to Circular No. 2.163, of 20.04.92, with the wording given by Article 2 of Circular No. 2.178, of 20.05.92, which prohibits the granting of authorization to administer consortium groups to affiliated administrators.

Art. 2nd Affiliated companies, for the purposes of the regulation applicable to consortium administrators, are defined as companies:

I - in which one participates with 10% (ten percent) or more of the capital of another, directly or indirectly;

II - in which administrator(s) of one participate(s), jointly or individually, with 10% (ten percent) or more of the capital of another, directly or indirectly;

III - in which partner(s) or shareholder(s) with 10% (ten percent) or more of the capital of one participate(s) with 10% (ten percent) or more of the capital of another, directly or indirectly;

IV - that have a common administrator.

Art. 3rd In the calculation of operational limits, as well as for classification into levels of operation, the amount of the consortium administrator's participation in the social capital of a company of the same social activity, if it exists, must be deducted from the adjusted net equity, in the manner provided by the regulation in force, of the participating administrator.

Art. 4th Consortium administrators affiliated, directly or indirectly, with the same manufacturer of durable consumer goods are subject to:

I - the presentation, individually, of adjusted net equity not lower than the limit fixed for Level 5 as provided in Article 1st, item III, of Circular No. 2.195, of 30.06.92;

II - the marketing of referenced quotas, exclusively, in goods produced by the manufacturer to which they are affiliated and in a number strictly sufficient to form consortium groups that provide for the monthly award of goods in a number not exceeding 5% (five percent) of the volume of the average monthly production of the manufacturer to which they are affiliated, destined for the domestic market, verified in the previous quarter.

Paragraph 1st The limit of quotas referred to in item II of this article applies to the set of administrators affiliated with the same manufacturer.

Paragraph 2nd In the case of the existence of only one consortium administrator affiliated with a manufacturer of durable consumer goods, the option provided for in paragraph 2nd of Article 2nd of Circular No. 2.195, of 30.06.92, remains available, observing the obligation to market referenced quotas, exclusively, in goods produced by the manufacturer to which it is affiliated.

Art. 5th This Circular enters into force on the date of its publication.

Art. 6th Consequently, Article 2nd of Circular No. 2.178, of 20.05.92, paragraph 1st of Article 1st of Circular No. 2.195, of 30.06.92, Article 69 of the Regulation annexed to Circular No. 2.196, of 30.06.92, Article 63 of the Regulation annexed to Circular No. 2.312, of 26.05.93, and Article 71 of the Regulation annexed to Circular No. 2.386, of 02.12.93, are hereby revoked.

Brasília, August 18, 1994

Cláudio Ness Mauch
Director of Norms and Organization of the
Financial System