Circular No. 3524 — Establishes leverage and immobilization limits for consortium administrators

Circular No. 3524 sets the maximum leverage limit for consortium administrators at six times their Adjusted Net Equity (PLA) and caps permanent assets at 100% of PLA. Administrators exceeding the immobilization limit at the time of issuance must adhere to a phased reduction schedule, reaching the 100% threshold by January 31, 2015. The circular mandates daily compliance with these limits, requires legal representatives to present regularization plans within specific deadlines upon breach, and amends several prior circulars to align reporting and capital requirements with these new standards.

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CIRCULAR NO. 003524

Dispenses with the leverage and immobilization limits for consortium administrators, and gives other provisions.

The Collegiate Board of the Central Bank of Brazil, in a session held on February 2, 2011, based on Articles 6 and 7 of Law No. 11,795, of October 8, 2008,

D E C I D E D:

Art. 1. The sum of the balance of passive operations of consortium administrators with the balance of resources of consortium groups may not exceed six times the value of the respective Adjusted Net Equity (PLA), calculated in accordance with Art. 6, § 1, of Circular No. 3,433, of February 3, 2009.

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Lineage: Superseded

amendssupersedesissued underrefers toproposed or not in RegAlertarrows run from the older text to the one that changes it

Timeline

Amended 2 times · last 2023-01-19

2023-01-19BCBBCB Resolution No. 285 — Provisions on the Constitution and Operation of Consortium Groupssupersedes
2021-02-10BCBBCB Resolution No. 69 — Amends and Consolidates Procedures for Reporting Information on Regulatory Limits and Standardsamends

This document amends: Circular No. 3398 — Establishes Procedures for Remitting Information Regarding the Calculation of Regulatory Minimum Limits and Standards

Source: Banco Central do Brasil — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works