Normative Instruction BCB No. 438 — Amends Normative Instruction BCB No. 236 Regarding Financial Statement Submission Procedures

BCB NORMATIVE INSTRUCTION NO. 438, OF DECEMBER 14, 2023

Amends BCB Normative Instruction No. 236, of February 17, 2022, which amends and consolidates the procedures for the submission of individual and consolidated financial statements, annual, semi-annual, and interim, for the purpose of disclosure in the Financial Statements Central of the National Financial System (CDSFN), as provided for in BCB Resolution No. 2, of August 12, 2020.

The Head of the Department of Financial System Monitoring (Desig), in the exercise of the authority conferred by Article 23, item I, letter “a”, of the Internal Regulations of the Central Bank of Brazil, annexed to BCB Resolution No. 340, of September 21, 2023, based on Article 85, item I, letter “b”, of said Regulations, and in view of the provisions of Law No. 6,404, of December 15, 1976, CMN Resolutions Nos. 4,818, of May 29, 2020, 4,911, of May 27, 2021, 4,950, of September 30, 2021, and 4,966, of November 25, 2021, and BCB Resolutions Nos. 2, of August 12, 2020, 146, of September 28, 2021, 168, of December 1, 2021, 310, of April 12, 2023, and 352, of November 23, 2023,

RESOLVES:

Art. 1º BCB Normative Instruction No. 236, of February 17, 2022, shall enter into force with the following alterations:

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

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III - Consolidated financial statements based on the international accounting standard issued by the International Accounting Standards Board (IASB), as provided for in CMN Resolution No. 4,818, of 2020, and BCB Resolution No. 2, of 2020;

IV - Consolidated financial statements of the Prudential Conglomerate, as provided for in CMN Resolution No. 4,950, of September 30, 2021, and BCB Resolution No. 168, of December 1, 2021; and

V - Consolidated financial statements in accordance with the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif), as provided for in Article 77 of CMN Resolution No. 4,966, of November 25, 2021, and Article 100 of BCB Resolution No. 352, of November 23, 2023.” (NR)

“Art. 4º .........................................................................................................................

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§ 1º If the institution opts for the faculty provided for in Article 77 of CMN Resolution No. 4,966, of 2021, or in Article 100 of BCB Resolution No. 352, of 2023, the consolidated statements shall be submitted in a single file, via Document 9010, as provided for in item I of the caput.” (NR)

“Art. 13. ..........................................................................................................................

Sole Paragraph. The indication referred to in the caput must be registered and kept updated in the System of Information on Entities of Interest of the Central Bank (Unicad), as provided for in BCB Resolution No. 209, of March 22, 2022.” (NR)

Art. 2º This Normative Instruction enters into force on

January 2, 2024.

GILNEU FRANCISCO ASTOLFI VIVAN

NOTE

1. CMN Resolution No. 4,818, of May 29, 2020, and BCB Resolution No. 2, of August 12, 2020, established the obligation of financial institutions and other institutions authorized to operate by the Central Bank of Brazil (BCB) to submit their individual and consolidated financial statements, annual, semi-annual, and interim (DFs), to this Autarchy. BCB Normative Instruction (IN BCB) No. 236, of February 17, 2022, establishes the procedures for the submission of these individual and consolidated financial statements, annual, semi-annual, and interim, for the purpose of disclosure in the Financial Statements Central of the National Financial System (CDSFN).

2. This BCB Normative Instruction promotes alterations in IN BCB No. 236, of 2022, in view of the issuance of BCB Resolutions Nos. 310, of April 12, 2023, and 352, of November 23, 2023.

3. BCB Resolution No. 310, of 2023, amends BCB Resolution No. 2, of 2020, in order to equate the proportional accounting treatment given to financial institutions to that of payment institutions, considering their size and risk profile, based on the new segmentation defined by BCB Resolution No. 197, of March 11, 2022. Thus, the obligation to prepare annual consolidated financial statements, adopting the international accounting standard in accordance with pronouncements issued by the International Accounting Standards Board (IASB), translated into Portuguese by a Brazilian entity accredited by the International Financial Reporting Standards Foundation (IFRS Foundation), became applicable also to payment institutions that are part of a Type 3 conglomerate and to payment institutions that are leaders of a Type 2 prudential conglomerate that have total assets, calculated according to the criteria and procedures embodied in the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif), greater than 0.1% (one tenth of one percent) of the Gross Domestic Product (GDP) of Brazil.

4. BCB Resolution No. 352, of 2023, which provides for the concepts and accounting criteria applicable to financial instruments, as well as for the designation and recognition of hedging relationships (hedge accounting) by consortium administrators and payment institutions authorized to operate by the Central Bank of Brazil, allows consortium administrators and payment institutions to prepare and disclose consolidated financial statements in accordance with the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif), until the 2024 fiscal year, in addition to statements under the international accounting standard.

5. At this juncture, due to the revocation of Circular No. 3,165, of December 4, 2002, the normative reference for the System of Information on Entities of Interest of the Central Bank (Unicad) was updated to BCB Resolution No. 209, of March 22, 2022.

6. In light of this, the present IN BCB promotes the following adjustments in IN BCB No. 236, of 2022:

I - inclusion of normative references regarding the financial statements that must constitute the CDSFN;

II - inclusion of normative reference regarding the option to submit Consolidated Financial Statements in accordance with the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif); and

III - update of normative reference regarding Unicad.

7. Decree No. 10,411, of June 30, 2020, regulates the conduct of regulatory impact analysis (AIR) as a prerequisite for the issuance of normative acts. However, in its Article 4º, said decree establishes the hypotheses for dispensation from conducting an AIR. The present 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 low impact; IV - normative act intended to update or revoke norms considered obsolete, without alteration of merit; and VI - normative act intended to maintain convergence to international standards.

8. Considering that the alterations hereby proposed aim to adapt IN BCB No. 236, of 2022, to the issuance of BCB Resolutions Nos. 310 and 352, both of 2023, I understand that the present IN BCB falls under item II of Article 4º of Decree 10,411, of 2020, as it regulates rights or obligations defined in a hierarchically superior norm that does not allow, technically or legally, different regulatory alternatives. Additionally, these alterations are in consonance with item III of Article 4º of said Decree, as they establish that statements must be sent via existing documents, making the implementation approach simpler and less burdensome, both for the institutions and for this Central Bank. It is also noted that the present IN BCB falls under item VI of Article 4º, as it aims to maintain convergence to the international accounting standard in accordance with pronouncements issued by the International Accounting Standards Board (IASB).

9. Finally, the update of the normative base of Unicad falls under item IV, as there is no alteration of merit.

10. Thus, based on items II, III, IV, and VI of Article 4º of Decree No. 10,411, of 2020, I understand that the issuance of the present IN BCB is exempt from conducting an AIR.

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