Circular No. 3866 — Establishes Procedures for Accounting Registration and Disclosure of Information by the Issuing Institution of Guaranteed Real Estate Notes (LIG)

The Collegiate Board of the Central Bank of Brazil, in a session held on December 13, 2017, based on Articles 9, 10, item IX, and 37 of Law No. 4,595, of December 31, 1964, and in view of the provisions of Resolution No. 4,598, of August 29, 2017,

R E S O L V E:

Art. 1. The issuing institution of Guaranteed Real Estate Notes (LIG), in its capacity as administrator of the asset portfolios subject to the fiduciary regime provided for in Article 69 of Law No. 13,097, of January 19, 2015, must register the assets comprising these portfolios in specific accounting lines, segregated from the other assets of the institution.

Sole Paragraph. The registration referred to in the main text must be accompanied by accounting controls that allow for the individualization of the components of each asset portfolio.

Art. 2. The LIG issuing institution must prepare, monthly, a report called the Asset Portfolio Statement (DCA), individualized by asset portfolio, containing information on:

I - the assets that make up the asset portfolio;

II - the LIG series in circulation issued by the institution;

III - the commitments related to the LIGs in circulation and the other obligations related to the administration of the asset portfolio, as per Article 27 of Resolution No. 4,598, of August 29, 2017; and

IV - compliance with the requirements of the asset portfolio.

Art. 3. The DCA must be:

I - disclosed by the institution on its website by the 30th of the month following the base date; and

II - kept available to the Central Bank of Brazil for a minimum period of five years.

Art. 4. LIG issuing institutions must highlight in the explanatory notes to their semi-annual and annual financial statements, regarding the LIGs in circulation, in addition to the clarifications required by current legislation:

I - aggregated information on the composition of the asset portfolio, the commitments related to the LIGs, and the other obligations related to the administration of the asset portfolio;

II - compliance with the requirements of the asset portfolio;

III - the percentage ratio between the sum of the assets that make up the asset portfolios and the total assets of the institution; and

IV - the internet address where the institution discloses the LIG Issuance Term, as per Article 11 of Resolution No. 4,598, of 2017.

Art. 5. The Department of Financial System Regulation (Denor) is authorized to disclose the operational procedures necessary to comply with the provisions of this Circular, including regarding the content and disclosure requirements of the DCA.

Art. 6. This Circular enters into force on January 1, 2018.

Paulo Sérgio Neves de Souza
Deputy Director of Regulation