CMN Resolution No. 4,885 — Amends Resolution No. 4,820 of May 29, 2020, which establishes temporary prohibitions on equity remuneration, increases in administrator compensation, share buybacks, and capital reduction for financial institutions

Resolution No. 4,885

CMN RESOLUTION
NO. 4,885, OF DECEMBER 23, 2020

Amends
Resolution No. 4,820, of May 29, 2020, which establishes, for a determined period, prohibitions on the remuneration of equity, on the increase in remuneration of administrators, on the repurchase of shares, and on the reduction of social capital, to be observed by financial institutions and other institutions authorized to operate by the Central Bank of Brazil, considering the potential effects of the coronavirus (Covid-19) pandemic on the National Financial System.

The Central Bank of Brazil, in accordance with Art. 9 of Law No. 4,595, of December 31, 1964, makes public that the Monetary National Council, in a session held from December 18 to 23, 2020, based on Arts. 4, item VIII, of the aforementioned Law, 20, § 1, of Law No. 4,864, of November 29, 1965, 7 and 23, item “a”, of Law No. 6,099, of September 12, 1974, 1 and 12 of Complementary Law No. 130, of April 17, 2009, 2, item VI, 9 and 10 of Law No. 4,728, of July 14, 1965, 6 of Decree-Law No. 759, of August 12, 1969, 1 of Law No. 10,194, of February 14, 2001, 7 of Decree-Law No. 2,291, of November 21, 1986, and 16 of Law No. 12,838, of July 9, 2013, having in view Art. 8, item I, of Constitutional Amendment No. 106, of May 7, 2020, and considering the potential effects of the coronavirus (Covid-19) pandemic on the National Financial System,

R E S O
L V E U:

Art. 1. Resolution No. 4,820, of May 29, 2020, shall enter into force with the following alterations:

“Art. 2. ........................................................................................................

I - remunerate equity, including in the form of advance, above the highest of the following values:

a) the amount equivalent to 30% (thirty percent) of the net profit adjusted in accordance with item I of Art. 202 of Law No. 6,404, of December 15, 1976; and

b) the amount equivalent to:

1. the mandatory minimum dividend, established by Art. 202 of Law No. 6,404, of 1976, including in the form of interest on equity, in the case of institutions constituted in the form of joint-stock companies; or

2. the minimum profit distribution established in the articles of association in the case of institutions constituted in the form of limited liability companies;

............................................................................................................” (NR)

Art.
2. This Resolution enters into force on the date of its publication.

Bruno Serra Fernandes
President of the Central Bank of Brazil, substitute