Normative Instruction BCB No. 423 of November 24, 2023

NORMATIVE INSTRUCTION
BCB NO. 423, OF NOVEMBER 24, 2023

Amends the Filling Instructions and the Layout of the document with code 2030 – Social, Environmental, and Climate Risk Document (DRSAC), as provided for in Normative Instruction BCB No. 222, of December 28, 2021.

The Head of the Financial System Monitoring Department (Desig), using the authority conferred by Article 23, item I, letter “a”, of the Internal Regulations of the Central Bank of Brazil, annexed to Resolution BCB No. 340, of September 21, 2023, based on
Article 85, item I, letter “b”, of the
aforementioned Regulations, and in view of the provisions of Resolutions BCB Nos. 151, of October 6, 2021, and 353, of November 23, 2023, and of Normative Instruction BCB No. 222, of December 28, 2021,

R E S O L V E S:

Art.
1º New versions of the Filling Instructions and the Layout of the document with code 2030 - Social, Environmental, and Climate Risk Document (DRSAC) shall come into force, starting from the December 2023 database date, available on the Central Bank of Brazil’s internet page, at the electronic address https://www.bcb.gov.br/estabilidadefinanceira/leiautedocumentoscrd.

Art. 2º The following modifications were made to the Filling Instructions:

I

• in chapter 5 - General Guidelines on the XML file:

a) in item 12: inclusion of the attributes “CNAE” and “versaoCNAE”;

b) in items 13 and 14: inclusion of the attribute “versaoCNAE”;

c) inclusion of item 16 for the tag “Contato” (Contact).

Art.
3º The following modifications were made to the Layout:

I

• in the XML Structure tab:

a) in the tag “DocumentoDRSAC”: creation of the tag “Contato” (Contact);

b) in the tag “Cliente” (Client): the size of the attribute “ident” changed from 40 to 14 characters and inclusion of the attribute “versaoCNAE”;

c) in the tag “ExpSetor”: inclusion of the attribute “versaoCNAE”;

d) in the tag “SetorRestrito”: inclusion of the attribute “versaoCNAE”.

II

• in the Layout tab:

a) inclusion of the “Contato” (Contact) group;

b) in the “Cliente” (Client) group:

1. the “Clientes” (Clients) field became optional;

2. in the “Client Identifier” field: the size of the attribute “ident” changed from 40 to 14 characters;

3. inclusion of the “versaoCNAE” field;

c) in the “Client Risk Exposure” group:

1. the “Client Exposure” field became optional;

d) in the “Client Economic Sector Risk Exposure” group:

1. inclusion of the “versaoCNAE” field;

e) in the “Restricted Economic Activity Sector” group:

1. inclusion of the “versaoCNAE” field.

Art.
4º Normative Instruction BCB No. 222, of December 28, 2021, shall come into force with the following alterations:

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

I - by the leading institution of each prudential conglomerate, on a consolidated basis, regarding the information of the institutions comprising the conglomerate, in accordance with the consolidation adopted for the calculation of Reference Equity;

II - by financial institutions and other institutions authorized to operate by the Central Bank of Brazil, not belonging to a prudential conglomerate, and by cooperatives not part of organized systems of three or two levels; and

III - by cooperative banks, by credit confederations, by service confederations constituted by central credit cooperatives or by central credit cooperatives, regarding the information of all cooperatives comprising organized systems of three or two levels, on an individual basis.

§ 1º Payment institutions leading a Type 3 prudential conglomerate are included in item I.

§ 2º Observing the schedule of Article 4º of Resolution BCB No. 151, of 2021, the information referred to in the caput must be prepared and sent starting from the first database date on which the institution authorized to operate by the Central Bank of Brazil is in effective operation.” (NR)

Art.
5º This Normative Instruction enters into force:

I

• on June 1, 2024, regarding Article 4º, in the part that amends items II and III of Article 2º of Normative Instruction BCB No. 222, of 2021; and

II

• on December 1, 2023, regarding the remaining provisions.

GILNEU
FRANCISCO ASTOLFI VIVAN

NOTE

1. The Social, Environmental, and Climate Risk Document (DRSAC), regulated by Normative Instruction BCB (IN BCB) No. 222, of December 28, 2021, based on Resolution BCB No. 151, of October 6, 2021, aims to collect data related to social risk, environmental risk, and climate risk incurred by the institution in its exposures in credit operations and securities, and of their respective debtors.

2. This IN BCB promotes the following alterations in the layout and the Filling Instructions of the DRSAC, in order to reduce and standardize the information sent and facilitate contact with the sending institutions:

I - makes optional the section of client information to allow institutions to provide only sectoral risk assessments, if so defined in their PRSAC and in the institution's risk management structure;

II - includes fields for contact information of the person responsible, within the financial institution, to clarify any doubts regarding the information provided in the DRSAC; and

III - includes an attribute to inform the version of the CNAE used.

3. The present IN BCB also promotes the following alterations in IN BCB No. 222, of 2021, in order to incorporate the alterations made by Resolution BCB No. 353, of November 23, 2023:

I - includes
Type 3 conglomerates classified in S2, S3, or S4 in the list of entities subject to the submission of the information referred to in IN BCB No. 222, of 2021;

II - establishes that the submission of information from cooperatives belonging to organized systems of three or two levels be done centrally by the cooperative systems; and

III - includes a command clarifying that the information must be prepared and sent starting from the first database date on which the institution authorized to operate by the Central Bank of Brazil is in effective operation.

4. Decree No. 10.411, of June 30, 2020, regulates the carrying out of regulatory impact analysis (AIR) as a prerequisite for the issuance of normative acts. However, in its Article 4º, the aforementioned decree establishes the hypotheses for exemption from carrying out AIR. This IN BCB 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.

5. In view of the inclusion of Type 3 conglomerates in the list of entities that must send information related to social, environmental, and climate risk, as established by Resolution BCB No. 353, of 2023, there is no alternative for the Central Bank other than establishing a procedure for the submission of this information, which justifies the classification under item II of Article 4º of Decree No. 10.411, of 2020. Furthermore, as the DRSAC is the Document used by other institutions to send this type of information, it was concluded that the inclusion of Type 3 conglomerates in the list of institutions required to submit the DRSAC is the simplest and least burdensome implementation approach, both for the institutions and for this Central Bank, which also justifies its classification under item III of Article 4º of the aforementioned Decree.

6. The commands determining i) the submission of information from cooperatives belonging to organized systems of three or two levels centrally by the cooperative systems and ii) the preparation and submission of information starting from the first database date on which the institution authorized to operate by the Central Bank of Brazil is in effective operation also fall under item II of Article 4º of Decree No. 10.411, of 2020, since they were established by Resolution BCB No. 353, of 2023, leaving no other alternative but to adjust IN BCB No. 222, of 2021, in order to reflect the new normative commands.

7. The inclusion of new attributes for the identification of the version of the CNAE being used and for the contact information of the person responsible for sending the Document are specific adjustments and bring no innovation regarding the information currently required, which also justifies the classification under item III of Article 4º of Decree 10.411, of 2020.

8. Finally, in the previous version of the Layout, the information regarding risk exposure related to the client was mandatory, which forced the declaration of these risks even if they were outside the scope of assessment defined by the PRSAC and the institution's risk management structure. The change to make this information mandatory only for institutions that have this definition in their PRSAC and following the criteria in the current regulation regarding risk management structure, falls under item VII of Article 4º of Decree No. 10.411, of 2020, as it reduces requirements, with the objective of reducing regulatory costs.

9. Thus, based on items II, III, and VII of Article 4º of Decree No. 10.411, of 2020, I understand that the issuance of this IN BCB is exempt from carrying out AIR.

GILNEU
FRANCISCO ASTOLFI VIVAN
Head of the Financial System Monitoring Department (Desig)