CMN Resolution No. 4657 — Amending Resolution No. 4,606 of October 19, 2017

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 April 26, 2018, based on Articles 3, item VI, and 4, items VIII and XI, of the aforementioned Law, Articles 9 and 10 of Law No. 4,728 of July 14, 1965, Article 20, § 1, of Law No. 4,864 of November 29, 1965, Articles 7 and 23 of Law No. 6,099 of September 12, 1974, and Article 1, § 1, and 12 of Complementary Law No. 130 of April 17, 2009,

R E S O L V E S:

Article 1. Resolution No. 4,606 of October 19, 2017, shall enter into force with the following amendments:

“Article 2. ........................................................

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§ 2. For institutions subject to the preparation of consolidated financial statements, the option referred to in the main text is applicable when the prudential conglomerate is constituted solely by financial institutions or other institutions authorized to operate by the Central Bank of Brazil that are:

I - exclusively Group II institutions, except for investment funds in credit rights (FIDC) that meet the requirements to be considered as low-risk securitization under Article 4, § 1;

II - exclusively Group III institutions.

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“Article 4. ........................................................

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II - absence of application in securitization titles, except for low-risk securitizations;

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IV - subject to the application in low-risk securitization titles, exclusive application in quotas of investment funds that:

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§ 1. For the purposes of this Resolution, low-risk securitization is considered that which cumulatively meets the following criteria:

I - be structured as an FIDC with a maximum of two payment priority classes;

II - have underlying assets:

a) denominated in national currency;

b) composed solely of:

1. immediate liquidity resources; and

2. credit operations of the same modality, regarding loan, financing, or representative instrument lines, and originated solely by an institution that is part of the prudential conglomerate, with resecuritization prohibited;

III - have underlying assets and subordinate quotas:

a) adherent to the other criteria for identifying simplified risk profiles established in this article and Article 5; and

b) not intended for:

1. resale;

2. obtaining benefits resulting from price movements, actual or expected; or

3. arbitrage.

§ 2. The activities carried out with TVM representing a credit operation originated by the institution itself are not included in item V of the main text of this article.” (NR)

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

Ilan Goldfajn
President of the Central Bank of Brazil