Instruction Normative BCB No. 505 — Amends Instruction Normative BCB No. 142 of August 16, 2021, Regarding Procedures for Submitting Financial Statements by Institutions in Extrajudicial Liquidation

Resolution No. 222

INSTRUCTION NORMATIVE
BCB NO. 505, OF AUGUST 23, 2024

Amends Instruction Normative BCB No. 142, of August 16, 2021, which disseminates the procedures for the submission of financial statements by institutions in extrajudicial liquidation, as provided for in Resolution BCB No. 13, of September 9, 2020.

The Head of the Department of Financial System Monitoring – Desig and the Head of the Resolution and Sanctioning Action Department – Derad, using the authority conferred upon them by Article 23, item I, letter “a” of the Internal Regulations of the Central Bank of Brazil, published through Resolution BCB No. 340, of September 21, 2023, based, respectively, on Articles 85, item I, letter “b” and 100, item III, letter “b”, item 1 of the aforementioned Regulations, and considering the provisions of Resolution BCB No. 13, of September 9, 2020,

RESOLVE:

Art. 1st. The new versions of the filling instructions and layouts of the documents with code 4090 - Special Balance Sheet of the Substitute Liquidator and 4096 - Opening Balance Sheet of the Extrajudicial Liquidation Regime, available on the Central Bank of Brazil’s website at the electronic address https://www.bcb.gov.br/estabilidadefinanceira/leiautedocumentoscrd, shall enter into force as of the January 2025 reporting date, with the following modifications:

I - alteration of the accounting items of the Accounting Standard for Institutions Regulated by the Central Bank of Brazil – Cosif, as defined in Instruction Normatives BCB Nos. 426, 427, 428, 429, 430, 431, 432 and 433, all of December 1, 2023; and

II - alteration of the submission format of the documents listed in the caput to XML (Extensible Markup Language).

Art. 2nd. Instruction Normative BCB No. 142, of August 16, 2021, shall enter into force with the following amendment:

“Art. 2nd. The institutions referred to in Article 1st must use the accounting titles provided for in the Accounting Standard for Institutions Regulated by the Central Bank of Brazil – Cosif, defined in Instruction Normatives BCB Nos. 426, 427, 428, 429, 430, 431, 432 and 433, all of December 1, 2023, intended for companies in extrajudicial liquidation, whereby:

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(NR)

Art. 3rd. The annex to Instruction Normative BCB No. 142, of 2021, shall enter into force with the following alterations:

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Submission Format: XML (Extensible Markup Language).

Submission Validation: Anticipated.

Submission Validation Schema: XSD (XML Schema Definition).

Additional Elements for Submission: Layout in XML format, XSD validation schemas, validator program and filling instructions, available on the Central Bank of Brazil’s website at the electronic address https://www.bcb.gov.br/estabilidadefinanceira/leiautedocumentoscrd.

Electronic address for resolving doubts regarding the submission and filling of the documents: derad.digep@bcb.gov.br.” (NR)

Art. 4th. This Instruction Normative enters into force on January 1, 2025.

ANDRÉ MAURÍCIO TRINDADE DA ROCHA CLIMERIO LEITE PEREIRA Head of Desig Head of Derad

NOTE

The accounting documents 4090 - Special Balance Sheet of the Substitute Liquidator and 4096 - Opening Balance Sheet of the Extrajudicial Liquidation Regime, created based on Resolution BCB No. 13, of September 9, 2020, and regulated by Instruction Normative BCB No. 142, of August 16, 2021, are prepared by institutions in extrajudicial liquidation regime and must be submitted to this Autarchy in accordance with the Accounting Standard for Institutions Regulated by the Central Bank of Brazil (Cosif).

2. Resolution CMN No. 4,966, of November 25, 2021, and Resolution BCB No. 352, of November 23, 2023, concluded the process of harmonizing the accounting standards provided for in the Accounting Standard for Institutions Regulated by the Central Bank of Brazil (Cosif) with the international pronouncement IFRS 9 – Financial Instruments issued by the International Accounting Standards Board (IASB).

3. To allow accounting bookkeeping in the Cosif chart of accounts to be aligned with the criteria and accounting procedures established in regulations issued by the National Monetary Council and the Central Bank of Brazil, it was necessary to alter the items of the aforementioned chart of accounts, which culminated in the issuance of Instruction Normatives BCB Nos. 426, 427, 428, 429, 430, 431, 432 and 433, all of 2023. With the issuance of these INs, the accounting items of Cosif came to have one more level, going from the current 5 levels to 6, which is being called Cosif version 1.5. As a direct consequence of this alteration, it is necessary to alter documents 4090 and 4096 so that they can reflect the new list of accounts.

4. Another direct consequence is the need to restructure the Cosif System, which receives and processes accounting documents, including documents 4090 and 4096.

5. Accounting documents 4090 and 4096 are still prepared by financial institutions (IFs) in TXT (text) format, an obsolete format. Maintaining documents in TXT format represents an additional cost not only for the Central Bank but also for the institutions. This is because the vast majority of other documents prepared and submitted to this Autarchy are in XML (eXtensible Markup Language) format, a format that is already mastered by institutions and represents a huge evolution compared to TXT, being an open, structured format that is easy to read by both people and computers, in addition to allowing content validation, which makes document testing more effective and simple to perform.

6. Due to restrictions, especially regarding time and personnel, the necessary alteration of the TXT and XML modules of the Cosif System would likely compromise the January 2025 deadline agreed upon for the entry into force of Cosif version 1.5. Therefore, to enable the reading of the new chart of accounts, it was decided to alter only the XML file reading module of the Cosif System.

7. Thus, as of the January 2025 reporting date, taking advantage of the fact that institutions will already need to alter the generation of documents 4090 and 4096 to the new chart, we understand that it would be appropriate to alter the aforementioned documents from the current TXT format to XML format, similar to other Cosif documents that will be sent in this format, starting from 2025.

8. With this, all files in the Cosif System will be in the same format, and the generation costs by institutions may be reduced, as well as the internal processing costs by the Central Bank.

9. Decree No. 10,411, of June 30, 2020, regulates the conduct of regulatory impact analysis (RIA) as a prerequisite for the issuance of normative acts. However, in its Article 4th, the Decree establishes the hypotheses for dispensing with the conduct of RIA. This BCB IN falls under the hypotheses provided for in items II - normative act intended to regulate rights or obligations defined in a hierarchically superior norm that does not allow, technically or legally, different regulatory alternatives; III - normative act considered to have low impact; and VII - normative act that reduces requirements, obligations, restrictions, requests or specifications with the objective of reducing regulatory costs.

10. Considering the issuance of the normative acts cited in paragraphs 2 and 3, and aiming to allow institutions to correctly calculate and report the Special Balance Sheet of the Substitute Liquidator and the Opening Balance Sheet of the Extrajudicial Liquidation Regime, there is no alternative other than to alter documents 4090 and 4096, thus justifying the classification under item II of Article 4th of Decree No. 10,411, of 2020. Furthermore, since the aforementioned documents are used by institutions to send information regarding the substitution of the liquidator and information regarding the opening balance of extrajudicial liquidation, it is understood that altering these documents, both in format and content, is the simplest and lowest-cost implementation method, both for the institutions and for this Central Bank, which also justifies its classification under item III of Article 4th of the aforementioned Decree. Finally, the classification of the present normative act under item VII of the cited Decree is justified, as documents in the old and obsolete format will no longer be required, which will generate cost reduction, as already clarified.

11. Thus, based on the provisions of paragraphs 9 and 10, we understand that the issuance of this Instruction Normative is exempt from the conduct of RIA.

ANDRÉ MAURÍCIO TRINDADE DA ROCHA CLIMERIO LEITE PEREIRA Head of the Department of Monitoring of the Department of Resolution and of Financial System – Desig Sanctioning Action – Derad