CMN Resolution No. 4,950, of September 30, 2021

Establishes the accounting criteria applicable to financial institutions and other entities authorized to operate by the Central Bank of Brazil in the preparation of the consolidated accounting documents of the prudential conglomerate.

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes public that the National Monetary Council, in a session held on September 30, 2021, based on Article 4, items VIII and XII, of the aforementioned Law, and considering the provisions of Article 61 of Law No. 11,941, of May 27, 2009,

RESOLVED:

CHAPTER I

ON THE OBJECT AND SCOPE OF APPLICATION

Art. 1. This Resolution establishes the accounting criteria applicable to financial institutions and other entities authorized to operate by the Central Bank of Brazil in the preparation of the consolidated accounting documents of the prudential conglomerate.

Sole Paragraph. The provisions of this Resolution do not apply to:

I - credit cooperatives; and

II - consortium administrators and payment institutions, which must observe the regulations issued by the Central Bank of Brazil in the exercise of their legal duties.

II - consortium administrators, payment institutions, securities brokerage firms, securities distribution firms, and foreign exchange brokerage firms, which must observe the regulations issued by the Central Bank of Brazil in the exercise of their legal duties. (Amended, effective March 1, 2024, by CMN Resolution No. 5,116, of January 25, 2024.)

CHAPTER II

ON THE PRUDENTIAL CONGLOMERATE

Art. 2. The prudential conglomerate is the group integrated by the following entities:

I - the institution mentioned in Article 1 that holds control over one or more entities cited in item II; and

II - controlled entities, directly or indirectly, in the country or abroad, by the institution mentioned in item I, which are:

a) financial institutions;

b) other entities authorized to operate by the Central Bank of Brazil;

c) payment institutions not authorized to operate by the Central Bank of Brazil;

d) entities that carry out the acquisition of credit operations, including real estate, or credit rights, such as factoring companies, securitization companies, and special purpose entities;

e) other legal entities whose exclusive corporate purpose is equity participation in the entities mentioned in items "a" to "d"; and

f) investment funds.

§ 1. For the purposes of item I of the main text, control is characterized:

I - in the case of investment funds, in situations where the investing institution:

a) is exposed to, or has rights to, variable returns arising from its involvement with the invested fund and has the ability to affect those returns through its power over the respective fund; or

b) assumes or retains substantially, in any form, risks and benefits; and

II - in the case of the other entities mentioned in the main text, in situations where the investing institution:

a) is exposed to, or has rights to, variable returns arising from its involvement with the investee and has the ability to affect those returns through its power over the investee;

b) holds, directly or indirectly, alone or together with other partners, including due to the existence of voting agreements, partner rights that ensure predominance in corporate decisions or the power to elect or remove the majority of administrators; or

c) controls the invested entity through common administration or management or through market activity under the same brand or trade name.

§ 2. The institution referred to in item I of the main text is the leading institution of the prudential conglomerate.

§ 3. In the case referred to in § 1, item II, item "c", the definition of the controlling entity must be:

I - based on consistent criteria; and

II - reported to the Central Bank of Brazil.

§ 4. The following do not integrate the prudential conglomerate:

I - the entities referred to in item II of the main text:

a) that are jointly controlled, evaluated according to specific regulation; or

b) that are under judicial or extrajudicial liquidation; and

II - business companies controlled, directly or indirectly, by the institutions referred to in the main text, specifically constituted to carry out innovative projects within the Controlled Environment for Financial and Payment Innovations (Regulatory Sandbox).

Art. 3. The Central Bank of Brazil may determine the inclusion or exclusion of entities in the prudential conglomerate, with the objective of avoiding distortions in the qualitative and quantitative representation of consolidated equity.

CHAPTER III

ON THE CONSOLIDATED ACCOUNTING DOCUMENTS OF THE PRUDENTIAL CONGLOMERATE

Section I

General Provisions

Art. 4. Leading institutions of prudential conglomerates must prepare and submit to the Central Bank of Brazil the consolidated accounting documents of the prudential conglomerate, as defined in specific regulation regarding the preparation and submission of accounting documents to the Central Bank of Brazil by financial institutions and other entities authorized to operate by the Central Bank of Brazil.

§ 1. For the purposes of consolidating the prudential conglomerate, the following must be used:

I - the financial statements of the controlled entities relative to the same base date as the statements of the controlling institution, at the stage immediately prior to the distribution of results;

II - the criteria, procedures, and accounting policies embodied in the Accounting Standard for Institutions Regulated by the Central Bank of Brazil (Cosif); and

III - appropriate techniques that enable the calculation of accounting information from two or more entities, according to consolidation procedures for financial statements defined by the Central Bank of Brazil.

§ 2. The use of financial statements of the controlled entities mentioned in items "d" to "f" of item II of the main text of Article 2 with a base date different from that of the controlling institution is permitted, provided that:

I - it is impracticable to obtain the accounting information of the controlled entity on the same base date as the financial statements of the controlling institution;

II - the most recent financial statement of the controlled entity is used, allowing a difference of up to two months from the base date of the controlling institution's trial balance or balance sheet; and

III - the effects of any significant transactions or other events occurring between the different dates are recognized.

Art. 5. The consolidated accounting documents must cover, on each base date, the totality of the controlled entities under this Resolution, considering those included during the period and disregarding those excluded.

Sole Paragraph. The controlled entity must be consolidated from the date the controlling institution acquired control until the date control ceases.

Art. 6. The financial statements of the entities comprising the prudential conglomerate must be adjusted, on each base date, so that, in the evaluation and recognition of assets, liabilities, revenues, and expenses of these entities, as well as in the information recorded in clearing accounts, the same criteria, procedures, and accounting policies used by the controlling institution embodied in Cosif are applied.

§ 1. The adjustments referred to in the main text must allow the evaluation and recognition of assets, liabilities, revenues, and expenses of entities not regulated by the Central Bank of Brazil to reflect the provisions of the regulation concerning Cosif.

§ 2. The provisions of the main text do not apply to the participation in associates, controlled entities, and jointly controlled entities held by the entities mentioned in Article 2, item II, item "f", provided that the following conditions are met:

I - the resources of the entity mentioned in Article 2, item II, item "f", are obtained from one or more investors with the intent to provide these investors with investment management services;

II - the commercial purpose of the entity mentioned in Article 2, item II, item "f", is to invest resources exclusively for returns from capital appreciation, investment income, or both;

III - the investment in the aforementioned participation in associates, controlled entities, and jointly controlled entities is evaluated based on fair value; and

IV - the aforementioned participation is not in an associate, controlled entity, or jointly controlled entity covered by item II of Article 2.

Art. 7. The leading institution of a prudential conglomerate integrated by entities controlled abroad must, prior to consolidation, observing the accounting procedures established in specific regulation:

I - designate the functional currency of each controlled entity abroad;

II - convert transactions in foreign currency to the designated functional currency of the controlled entity; and

III - convert the financial statements of the controlled entity abroad from the functional currency to the national currency, if the functional currency of the controlled entity is different from the national currency.

Art. 8. The Central Bank of Brazil may determine the alteration of the functional currency of controlled entities abroad, if an inadequate definition of such currency is found.

Art. 9. The leading institution of a prudential conglomerate must reclassify, in the consolidated accounting documents of the prudential conglomerate, to the appropriate intangible asset account, the goodwill regarding future profitability expectations (goodwill) related to the investee recognized in the individual balance sheet of the investor.

Section II

Non-Controlling Interests

Art. 10. The leading institution of a prudential conglomerate must measure the non-controlling interest, proportional to this participation, at the date of obtaining control of the investee, at the fair value of the identifiable net assets of the controlled entity, as defined in specific regulation.

Sole Paragraph. For the purposes of the main text, non-controlling interest is considered the portion of the controlled entity's capital not attributable, directly or indirectly, to the controlling institution.

Art. 11. The leading institution of a prudential conglomerate, in the event of a change in the proportion held by non-controlling interests, without loss of control, must:

I - adjust the accounting values of its participation and the non-controlling interest to reflect changes in their relative participations in the controlled entity; and

II - recognize, in the equity attributable to the owners of the controlling institution, the differences between the value by which the non-controlling interests are adjusted and the fair value of the consideration paid or received.

Art. 12. The leading institution of a prudential conglomerate must recognize, in the consolidated accounting documents of the prudential conglomerate, the non-controlling interest, separately in equity.

Sole Paragraph. The institution referred to in the main text must allocate the portions of profits, losses, each component of other comprehensive income, and total comprehensive income proportionally to the owners of the controlling institution and to the non-controlling interests.

Section III

Disclosure of the Consolidated Financial Statements of the Prudential Conglomerate

Art. 13. The leading institution of a prudential conglomerate is permitted to disclose the Financial Statements of the Prudential Conglomerate provided that they are:

I - prepared and disclosed as follows, according to specific regulation:

a) Balance Sheet;

b) Income Statement;

c) Statement of Comprehensive Income;

d) Statement of Cash Flows; and

e) Statement of Changes in Equity;

II - identified by the nomenclature defined in the main text, prominently;

III - accompanied by the respective explanatory notes and the independent auditor's report, according to specific regulation.

Sole Paragraph. The provisions of Article 10 of Resolution No. 4,818, of May 29, 2020, do not apply to the financial statements referred to in the main text.

CHAPTER III-A

ON THE SUB-PRUDENTIAL CONGLOMERATE

(Chapter III-A included, effective July 1, 2026, by CMN Resolution No. 5,221, of May 30, 2025.)

Art. 13-A. The sub-prudential conglomerate is formed by the leading institution of the prudential conglomerate and by the other entities comprising the prudential conglomerate that: (Included, effective July 1, 2026, by CMN Resolution No. 5,221, of May 30, 2025.)

I - are constituted in the country; and (Included, effective July 1, 2026, by CMN Resolution No. 5,221, of May 30, 2025.)

II - do not have any current or planned impediment to the timely transfer of resources to the other entities of the sub-conglomerate. (Included, effective July 1, 2026, by CMN Resolution No. 5,221, of May 30, 2025.)

Sole Paragraph. For the purposes of the main text, agencies abroad of the entities comprising the sub-prudential conglomerate must not be included. (Included, effective July 1, 2026, by CMN Resolution No. 5,221, of May 30, 2025.)

Art. 13-B. In the preparation of the consolidated accounting information of the sub-prudential conglomerate, the institutions referred to in Article 1 must, when applicable, observe: (Included, effective July 1, 2026, by CMN Resolution No. 5,221, of May 30, 2025.)

I - the criteria established in Chapter III, Sections I and II, of this Resolution; and (Included, effective July 1, 2026, by CMN Resolution No. 5,221, of May 30, 2025.)

II - the accounting consolidation procedures established in the specific regulation of the Central Bank of Brazil. (Included, effective July 1, 2026, by CMN Resolution No. 5,221, of May 30, 2025.)

CHAPTER IV

FINAL PROVISIONS

Art. 14. The Central Bank of Brazil is authorized to alter the leading institution of the prudential conglomerate, if an inadequate definition is found.

Art. 15. The Central Bank of Brazil will regulate the additional procedures necessary to comply with this Resolution, including adjustments to accounting procedures additional to those provided in Article 6, in order to promote greater alignment of the accounting practices applied in the consolidated documents with the institution's risk management.

Art. 16. The accounting procedures established in this Resolution must be applied prospectively from the date of its entry into force.

Art. 17. The following are revoked:

I - Resolution No. 4,280, of October 31, 2013;

II - Resolution No. 4,517, of August 24, 2016;

III - CMN Resolution No. 4,866, of October 26, 2020; and

IV - item V of the main text of Article 5 of Circular No. 3,082, of January 30, 2002.

Art. 18. This Resolution enters into force on January 1, 2022.

Roberto de Oliveira Campos Neto
President of the Central Bank of Brazil