CMN Resolution No. 5,067 of April 20, 2023, Amending CMN Resolution No. 4,910 of May 27, 2021, Regarding Independent Audit Services for Financial Institutions

Resolution

CMN RESOLUTION NO. 5,067, OF APRIL 20, 2023

Amends CMN Resolution No. 4,910, of May 27, 2021, which provides for the provision of independent audit services by financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

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 20, 2023, based on Articles 4, items VIII and XII, and 10, item XI, of the aforementioned Law, and Article 1, paragraph 1, of Complementary Law No. 130, of April 17, 2009,

R E S O L V E D:

Article 1. CMN Resolution No. 4,910, of May 27, 2021, shall enter into force with the following amendments:

“Article 5. Independent auditors must prepare and adequately document their independence policy, which must be made available to the Central Bank of Brazil and the audit committee of the audited institution, when installed, evidencing, in addition to the situations provided for in this Resolution, other situations that may affect their independence, as well as the internal control procedures adopted with a view to monitoring, identifying, and preventing their occurrence.” (NR)

“Article 8.
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§ 2. The audit committees of the institutions mentioned in the caput, item II, and in § 1 are responsible for fulfilling the duties and responsibilities provided for in this Resolution, with respect to other institutions authorized to operate by the Central Bank of Brazil that are part of the prudential conglomerate.

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§ 4. Institutions mentioned in the caput that are part of a prudential conglomerate are exempt from establishing their own audit committee if the leading institution of the conglomerate establishes an audit committee in accordance with this Resolution.

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“Article 21. The independent auditor must:

I - observe, in the provision of their services, the audit standards and procedures established by the National Monetary Council, by the Central Bank of Brazil, and, insofar as they are not conflicting with these, the audit standards and procedures determined by the Securities and Exchange Commission (CVM), by the Federal Accounting Council, and by the Institute of Independent Auditors of Brazil; and

II - prepare, as a result of the audit work, the following reports:

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§ 3. In the interim financial statements, the substitution of the independent auditor’s report referred to in item “a” of item II of the caput by the independent auditor’s limited review report is permitted.

§ 4. The reports mentioned in item II of the caput, as well as the audit documentation, must be made available to the Central Bank of Brazil for a minimum of five years or for a longer period resulting from an express determination by this Agency.” (NR)

“Article 26. The independent auditor, in addition to the provisions of this Resolution, must observe the standards, regulations, and procedures issued by the Securities and Exchange Commission (CVM), by the Federal Accounting Council, and by the Institute of Independent Auditors of Brazil with respect to:

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“Article 27. The independent auditor must:

I - grant access to the Central Bank of Brazil, at any time, including by providing printed or digital copies, to the audit documentation, as well as to any other documents that served as the basis or evidence for the issuance of the reports prepared in accordance with Article 21, item II, upon formal request, within the scope of the duties of the aforementioned Agency, observing the limits provided for in the current legislation;

II - formally communicate to the Central Bank of Brazil:

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“Article 34.
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Sole paragraph. In the case of the appointment of members of the audit committee before December 31, 2024, the necessary statutory adaptations to comply with the provisions of Articles 9 and 10 of this Resolution must be carried out previously or concurrently.” (NR)

Article 2. Items I and II of § 4 of Article 8 of CMN Resolution No. 4,910, of 2021, are hereby revoked.

Article 3. This Resolution enters into force on May 1, 2023.

Otávio Ribeiro Damaso
President of the Central Bank of Brazil substitute