CMN Resolution No. 4403 — Dispenses financial institutions from preparing and submitting Consolidated Economic-Financial Statements (Conef) to the Central Bank of Brazil, amends Resolutions Nos. 2,723, 2,827, and 3,198, and revokes provisions

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 March 26, 2015, based on Articles 4, items VIII, XI, and XII, of the aforementioned Law, and Article 61 of Law No. 11,941 of May 27, 2009,

R E S O L V E S:

Art. 1 Financial institutions and other institutions authorized to operate by the Central Bank of Brazil are exempt from preparing and submitting the consolidated accounting statements of the Consolidated Economic-Financial Statement (Conef) to the Central Bank of Brazil.

Art. 2 Articles 2, 8, 17, and 18 of Resolution No. 2,723 of May 31, 2000, shall enter into force with the following wording:

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

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§ 4 Only corporate participations in companies headquartered in countries with favorable taxation, as defined in tax legislation, are admitted, in cases where direct or indirect control by the participating institution is ensured, alone or together with other partners, including due to the existence of voting agreements or partner rights that ensure, individually or cumulatively:

I - preponderance in social deliberations;

II - power to elect or remove the majority of administrators;

III - effective operational control, characterized by common administration or management; and

IV - corporate control represented by the sum of the participations held by the institution, regardless of the percentage, with those held by its administrators, controllers, and affiliated companies, as well as those acquired, directly or indirectly, through investment funds.” (NR)

“Art. 8 ........................................................

§ 1 The prior authorization provided for in the caput applies to the participation, the increase in the percentage of participation, and the control situations provided for in Article 2, § 4, not covered by the conditions established in § 4 of this article.

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

“Art. 17. Institutions that have branches or corporate participation abroad must send to the Central Bank of Brazil reports, inquiries, or questions directed to their branches and participated institutions over which they hold control, in accordance with Article 2, § 4, of this Resolution, or that participate directly or indirectly with 20% (twenty percent) or more of the voting or total capital abroad, whenever formulated by foreign regulatory or supervisory entities, as well as their respective responses.” (NR)

“Art. 18. It is prohibited to carry out any operations between financial institutions and other institutions authorized to operate by the Central Bank of Brazil and companies located abroad, where there is participation held by the same controllers of those institutions or control, in accordance with Article 2, § 4, when said controllers are residents domiciled in the Country, except in the cases:

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§ 1 The prohibition referred to in this article applies to operations carried out through companies located in the Country, affiliated or subject to the same control of the institutions referred to in the caput, in accordance with Article 2, § 4.

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

Art. 3 Article 2 of Resolution No. 2,827 of March 30, 2001, shall enter into force with the following wording:

“Art. 2 Financial institutions and other institutions authorized to operate by the Central Bank of Brazil subject to the preparation of Consolidated Accounting Statements of the Prudential Conglomerate, in accordance with Resolution No. 4,280 of October 31, 2013, must calculate the limit referred to in Article 1 on a consolidated basis.” (NR)

Art. 4 Article 1 of the Regulation annexed to Resolution No. 3,198 of May 27, 2004, shall enter into force with the following wording:

“Art. 1 ........................................................

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II - the accounting statements provided for in Article 10 of Resolution No. 2,723 of May 31, 2000;

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Art. 5 This Resolution enters into force on the date of its publication.

Art. 6 Paragraph 3 of Article 2 and Articles 3, 4, 5, and 11 of Resolution No. 2,723 of May 31, 2000, and Resolution No. 2,743 of June 28, 2000, are hereby repealed.

             Alexandre Antonio Tombini  
                    President of the Central Bank of Brazil