Resolution CMN No. 4151 — Creates the Combined Balance Sheet of the Cooperative System and Establishes Conditions for Its Preparation and Submission to 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 October 25, 2012, considering the provisions of Article 4, items VIII and XII, of the aforementioned Law, and Articles 1, paragraph 1, and 12, item V, of Complementary Law No. 130 of April 17, 2009,

R E S O L V E D:

Article 1. Cooperative banks, credit confederations, and central credit cooperatives must prepare and submit to the Central Bank of Brazil, quarterly, the Combined Balance Sheet of the Cooperative System, starting from the reference date of June 30, 2013.

Article 2. The Combined Balance Sheet of the Cooperative System must be prepared for the following levels of accounting combination:

I - central credit cooperative, including the equity of affiliated single credit cooperatives;

II - credit confederation, including the equity of central credit cooperatives and single credit cooperatives that are part of the respective system; and

III - cooperative bank, including the equity of central credit cooperatives and single credit cooperatives that are part of the respective system.

Article 3. The Combined Balance Sheet of the Cooperative System must be prepared based on financial information from the institutions that are part of the cooperative system to which it refers, as if that system represented a single economic entity.

Sole Paragraph. For the purposes of the provision in the main text, transactions of any nature carried out, directly or indirectly, between the institutions that are part of the system must be considered as if they had been carried out between departments that are part of a single economic entity.

Article 4. For the purposes of this Resolution, a cooperative system is considered to be the set formed by single credit cooperatives, central credit cooperatives, credit confederations, and cooperative banks, as well as by other financial institutions or entities authorized to operate by the Central Bank of Brazil, except consortium administrators, directly or indirectly linked to these institutions, through shareholding or effective operational control, characterized by common administration or management, or by acting in the market under the same brand or trade name.

Article 5. The disclosure of the Combined Balance Sheet of the Cooperative System, prepared from the accounting information contained in the Combined Balance Sheet of the Cooperative System, is permitted, provided it is done in a complete manner, including the Combined Income Statement, Combined Cash Flow Statement (CFCS), explanatory notes, and the report of the independent auditor.

§ 1. The Combined Balance Sheet of the Cooperative System must be audited by an independent auditor registered with the Securities and Exchange Commission (CVM), who must issue an opinion on the values presented, the adequate representation of the economic-financial position of the cooperative system, as well as on the observance of the elimination procedures provided for in the current regulations.

§ 2. The hiring of independent audit services must observe the provisions of Resolution No. 3,198 of May 27, 2004, particularly with regard to the registration, certification, and criteria of auditor independence.

§ 3. The explanatory notes mentioned in the main text, in addition to containing the necessary information on the equity, financial, and results position of the system, must highlight:

I - the accounting criteria and procedures adopted;

II - the analytical composition of the participations between the institutions included in the document;

III - the level and type of operational control exercised, characterized by the form of common administration or management or acting under the same brand;

IV - the goodwill or discount arising from the acquisition of shareholding, as well as the criteria used for its amortization or appropriation to the result; and

V - the identification of institutions included or excluded from the document during the period, with the respective clarifications, as well as the date of the financial statements that served as the basis for the preparation of the statements.

§ 4. The disclosure of the Combined Cash Flow Statement is permitted, provided that the combined equity, on the reference date of December 31 of the immediately preceding fiscal year, is less than R$2,000,000.00 (two million reais).

Article 6. The Central Bank of Brazil is authorized to determine the inclusion or exclusion of institutions from the Combined Balance Sheet of the Cooperative System.

Article 7. All supporting documentation used in the preparation of the Combined Balance Sheet of the Cooperative System must be kept available to the Central Bank of Brazil for a minimum period of 5 (five) years.

Article 8. The Central Bank of Brazil will regulate the additional procedures to be observed in the preparation, submission, and disclosure of the documents covered by this Resolution, including with regard to deadlines and format.

Article 9. This Resolution enters into force on the date of its publication.

                    Alexandre Antonio Tombini President of the Central Bank of Brazil