CMN Resolution No. 4745 — Amends Resolution No. 4,557 of February 23, 2017, Regarding Risk Management Structure, Capital Management Structure, and Information Disclosure Policy

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 August 29, 2019, based on Articles 4, item VIII, of the aforementioned Law, 2, item VI, and 9 of Law No. 4,728 of July 14, 1965, 20, § 1, of Law No. 4,864 of November 29, 1965, 7 and 23, letter “a”, of Law No. 6,099 of September 12, 1974, 1, item II, of Law No. 10,194 of February 14, 2001, 6 of Decree-Law No. 759 of August 12, 1969, and 1, § 1, of Complementary Law No. 130 of April 17, 2009,

R E S O L V E S:

Article 1. The summary of Resolution No. 4,557 of February 23, 2017, shall henceforth read as follows:

“Provides for the risk management structure, the capital management structure, and the information disclosure policy.” (NR)

Article 2. Resolution No. 4,557 of 2017 shall henceforth read as follows:

“Article 1. This Resolution provides for the risk management structure, the capital management structure, and the information disclosure policy.” (NR)

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

I – continuous and integrated risk management structure;

II – continuous capital management structure; and

III – information disclosure policy regarding:

a) the continuous and integrated risk management structure;

b) the continuous capital management structure;

c) the calculation of the risk-weighted asset amount (RWA), as provided in Resolution No. 4,193 of March 1, 2013;

d) the adequacy of Reference Equity (PR), as defined in Resolution No. 4,192 of March 1, 2013;

e) liquidity indicators, as provided in Resolution No. 4,401 of February 27, 2015, and Resolution No. 4,616 of November 30, 2017;

f) the Leverage Ratio (RA), as provided in Resolution No. 4,615 of November 30, 2017; and

g) the remuneration policy for administrators, as provided in Resolution No. 3,921 of November 25, 2010.

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

“Article 40. ...............................................................

I – policies and strategies for capital management, clearly documented, establishing procedures intended to maintain PR, Tier 1, and Core Capital, as provided in Resolution No. 4,192 of March 1, 2013, at levels compatible with incurred risks and the minimum regulatory requirement;

.........................................................................

VII – ...................................................................

.........................................................................

b) adequacy of PR, Tier 1, and Core Capital levels to incurred risks;

VIII – policies and strategies for capital management, clearly documented, establishing procedures intended to maintain the RA at levels compatible with the minimum regulatory requirement established in Resolution No. 4,615 of 2017.

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

“CHAPTER V

OF THE GOVERNANCE OF MANAGEMENT STRUCTURES AND INFORMATION DISCLOSURE POLICY” (NR)

“Article 47. ...............................................................

.........................................................................

§ 3. The duties of the director referred to in the main text include:

I – supervision of the development, implementation, and performance of the capital management structure, including its improvement;

II – responsibility for processes and controls regarding the calculation of the RWA amount, the calculation of minimum requirements for PR, Tier 1, and Core Capital, and compliance with the Core Capital Add-on; and

III – responsibility for processes and controls regarding the calculation and compliance with the minimum RA requirement, when applicable to the institution.” (NR)

“Article 48. The Board of Directors shall, for the purposes of this Resolution:

.........................................................................

II – ....................................................................

g) the capital contingency plan referred to in Article 40, item V; and

h) the information disclosure policy referred to in Article 56;

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

“Article 56. An information disclosure policy must be established that demonstrates the institution’s compliance with prudential requirements, as detailed by the Central Bank of Brazil.

§ 1. The disclosure policy referred to in the main text must include:

I – the specification of information to be disclosed;

II – the governance of the information disclosure process, including respective duties and chain of command;

III – the detail of internal controls applied to ensure the reliability of disclosed information, as well as the adequacy of its content; and

IV – the relevance criteria used for information disclosure, based on the needs of external users for economic decision-making purposes.

§ 2. The information referred to in the main text must appear in a public access report containing:

I – description of the continuous and integrated risk management structure;

II – description of the continuous capital management structure; and

III – detail of the calculation of the RWA amount, the adequacy of PR, liquidity indicators, the RA, and executive remuneration.

§ 3. The form of the report referred to in § 2 must be established by the Central Bank of Brazil.” (NR)

“Article 56-A. The institution must designate a director responsible for information disclosure in accordance with Article 56.

§ 1. The duties of the director mentioned in the main text include:

I – consolidating the information to be disclosed in the report referred to in § 2 of Article 56;

II – ensuring the compliance of disclosed prudential information with respect to information contained in the management reports established in this Resolution; and

III – proposing updates to the Board of Directors on the information disclosure policy.

§ 2. Provided that the absence of conflict of interest is assured, it is admitted that the director responsible for information disclosure may perform other functions within the institution.” (NR)

Article 3. The following are revoked:

I – Article 12 of Resolution No. 4,193 of 2013; and

II – Article 3 of Resolution No. 4,615 of 2017.

Article 4. This Resolution enters into force on the date of its publication.

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