Circular No. 2684 — Establishes the classification of consortium administrators into levels of operation and consolidates provisions on the administration of consortium groups

CIRCULAR NO. 002684

Dispenses with the classification of consortium administrators into levels of operation and consolidates provisions on the administration of consortium groups.

The Collegiate Board of the Central Bank of Brazil, in a session held on 08.05.96, based on Article 33 of Law No. 8.177, of 01.03.91,

DECIDED:

Art. 1. To establish that, for the purpose of constituting consortium groups referenced in goods and sets of goods, including movable and immovable property and air travel tickets, the administrator:

I - must be classified within the minimum limits of paid-in capital and net equity established in the current regulations;

II - must observe, for its obligations represented by the sum of the monthly collections forecast for the constituted groups, a maximum limit of 15 (fifteen) times the value of its respective net equity or, in the case of non-profit civil associations, its respective social equity;

III - must not have pending remittance to the Central Bank of Brazil of financial statements and data related to its operations, observing the current regulations;

IV - must be classified into one of the following levels of operation, according to the relationship verified between its respective adjusted net equity (ANE), calculated on the last business day of the month prior to the one in which the administrator is operating, and the minimum required capital (MRC), in the form of the current regulations for consortium administrators:

a) level 1: ANE equal to or greater than one time and less than three times the MRC;

b) level 2: ANE equal to or greater than three times and less than nine times the MRC;

c) level 3: ANE equal to or greater than nine times and less than twelve times the MRC;

d) level 4: ANE equal to or greater than twelve times and less than forty times the MRC;

e) level 5: ANE equal to or greater than forty times the MRC.

Art. 2. Each administrator, according to the level of operation in which it is classified, may not, at any time, present the total corresponding to the number of unsubscribed quotas, by segment, exceeding:

| LEVEL
SEGMENT |------------------------------------------------
| 1 | 2 | 3 | 4 | 5 |
---------|--------|--------|---------|---------|---------| I | 1,000 | 2,000 | 3,000 | 6,000 | 20,000 | ---------|--------|--------|---------|---------|---------| II | 500 | 1,000 | 2,000 | 5,000 | 20,000 | ---------|--------|--------|---------|---------|---------| III | 2,000 | 4,000 | 5,000 | 8,000 | 20,000 | ---------|--------|--------|---------|---------|---------| IV | 600 | 1,200 | 2,400 | 5,600 | 20,000 | ---------|--------|--------|---------|---------|---------| V | 20,000 | 60,000 | 360,000 | 540,000 | 700,000 | ---------|--------|--------|---------|---------|---------| VI | - | - | 20,000 | 40,000 | 100,000 | ----------------------------------------------------------

Sole Paragraph 1. For the purposes of the provisions of the "caput" of this article, the consortium segments are as follows:

I - real estate;

II - tractors, road equipment, machinery and agricultural equipment, vessels, aircraft, motor vehicles intended for cargo transport with a capacity greater than 1,500 kg, and motor vehicles intended for collective transport with a capacity for 20 (twenty) passengers or more;

III - motor vehicles not included in the previous segment, except motorcycles and mopeds;

IV - motorcycles and mopeds;

V - other durable movable goods;

VI - air travel tickets.

Sole Paragraph 2. For the purposes of consortium regulations, goods included in the same segment, in the form of the provision in the previous paragraph, are considered of the same kind.

Sole Paragraph 3. Non-profit civil associations authorized to administer consortium groups may operate exclusively at level 2 of operation.

Art. 3. To consortium administrators linked, directly or indirectly, to a manufacturer of durable consumer goods, classified at level 5, as provided for in item IV of Article 1 of this Circular, the sale of quotas in a number strictly sufficient to form consortium groups that provide for the monthly awarding of goods in a number not exceeding 5% (five percent) of the average monthly production volume of the manufacturer to which they are linked, destined for the domestic market, verified in the previous quarter, is admitted, alternatively to the limit provided for in the previous article.

Sole Paragraph. The optional limit provided for in the "caput" of this article is 15% (fifteen percent) in the case of an administrator linked, directly or indirectly, to a manufacturer of motorcycles or mopeds.

Art. 4. In the case of more than one administrator linked, directly or indirectly, to the same manufacturer of movable goods, the quota limits provided for in Articles 2 and 3 of this Circular apply to the set of administrators linked to the same manufacturer.

Art. 5. Administrators linked, directly or indirectly, to a manufacturer of durable consumer goods may only sell quotas referenced exclusively in goods produced by the manufacturer to which they are linked.

Art. 6. An administrator that presents an operational level incompatible with the adjusted net equity (ANE) calculated on the last business day of the month prior to the one in which it is operating is prohibited, until its respective regulatory classification, from constituting new consortium groups referenced in any movable and immovable goods and air travel tickets.

Art. 7. The automatic classification, as well as the prohibition to constitute new consortium groups and the return to the activity of constituting groups after regulatory classification, as provided for in Articles 1 and 6 of this Circular, respectively, do not depend on any communication from the Central Bank of Brazil.

Art. 8. For the purposes of the regulation applicable to consortium administrators, companies are considered linked:

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

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

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

IV - that have a common administrator.

Art. 9. In the calculation of operational limits, as well as for classification into levels of operation, the amount of participations of a consortium administrator in the social capital of a company in the same social activity, if any, must be deducted from the net equity, adjusted in the form of current regulations, of the participating administrator.

Art. 10. The granting of authorization to administer consortium groups remains suspended for an indefinite period.

Art. 11. Administrators already authorized to administer consortium groups that do not have the exclusive social object of administering consortia may only operate at level 1 of operation as provided for in Article 2 of this Circular.

Sole Paragraph. The provisions of this article do not apply to non-profit civil associations that administer consortium groups.

Art. 12. Without prejudice to the provisions of Article 7 of this Circular, the Central Bank of Brazil may determine the prohibition of the administrator from constituting consortium groups referenced in any movable or immovable goods or air travel tickets whenever it finds irregularities against the company or its administrators, characterized by non-compliance with the legislation and current regulatory norms, or detects pending issues with consumer protection agencies, until the irregularities that motivated the prohibition are resolved.

Sole Paragraph. The administrator may only resume constituting consortium groups after the irregularities that motivated the prohibition are resolved and with prior authorization in a specific process formalized with the Regional Branch of the Central Bank of Brazil that has jurisdiction over its headquarters.

Art. 13. This Circular enters into force on the date of its publication.

Art. 14. Article 13 of the Regulation annexed to Circular No. 2,163, of 04.20.92, Circular No. 2,195, of 06.30.92, item II of Article 18 of the Regulation annexed to Circular No. 2,196, of 06.30.92, Articles 2 to 4 of Circular No. 2,230, of 09.23.92, items I to V and paragraphs 1 and 2 of Article 2 and Article 3 of Circular No. 2,312, of 05.26.93, Circular No. 2,327, of 07.07.93, Circular No. 2,351, of 08.04.93, Articles 2 to 6 of Circular No. 2,386, of 12.02.93, Article 4 of Circular No. 2,394, of 12.22.93, Circular No. 2,467, of 08.17.94, item 4 and subitems 4.2 and 4.3 of Ordinance No. 190, of 10.27.89, of the Ministry of Finance, and item 3 and subitem 3.1 of Ordinance No. 028, of 03.05.90, of the Ministry of Finance, are repealed.

Brasília, May 9, 1996

Cláudio Ness Mauch
Director