RESOLUTION CMN No. 4593

The Central Bank of Brazil, pursuant to art. 9 of Law No. 4,595 of 31 December 1964, makes public that the National Monetary Council, in a session held on 28 August 2017, based on arts. 4, item VIII, of the said Law, and 2, items II and III, and 10, item VIII, of Law No. 4,728 of 14 July 1965, and 26‑A of Law No. 12,810 of 15 May 2013,

RESOLVES

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CHAPTER I

OBJECT AND SCOPE

Art. 1 This Resolution provides for the registration and centralized deposit of financial assets and securities by financial institutions and other entities authorized to operate by the Central Bank of Brazil, issued in the Country, as well as for the provision of financial‑asset custody services by those institutions.

Single paragraph. Assets that are shares and derivative contracts are not included in the scope of this Resolution, except as provided in item I of § 1 of Art. 7.

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CHAPTER II

FINANCIAL ASSETS

Art. 2 For the purposes of this Resolution, financial assets are considered to be:

I – credit titles, credit rights and other financial instruments that are:

a) obligations to pay of the institutions mentioned in Art. 1, including time‑deposit contracts;

b) co‑obligations to pay of the institutions mentioned in Art. 1, in operations such as acceptance and guarantee;

c) admitted in the asset portfolios of the institutions mentioned in Art. 1, except those that are the object of discount;

d) the object of discount in credit operations, by institutions mentioned in Art. 1 or delivered as collateral to those institutions in other financial‑system operations;

e) recorded or custodied by institutions mentioned in Art. 1; or

f) issued by or owned by entities not authorized to operate by the Central Bank of Brazil, belonging to a prudential conglomerate, as defined in the terms of the Accounting Plan of Institutions of the National Financial System (Cosif);

II – goods, rights or financial instruments:

a) whose specific legislation or regulation defines them as such or determines their registration or centralized deposit; or

b) that, within a payment arrangement, constitute a payment obligation of a payment institution to its clients.

§ 1 Financial assets referred to in item I of the caput may originate from operations carried out in the financial, commercial, industrial, real‑estate, mortgage, leasing, service‑provision sectors, among others, including future‑credit rights of unknown amount, provided they derive from relationships already established.

§ 2 Securities are excluded from the definition of financial assets referred to in the caput.

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CHAPTER III

FINANCIAL ASSETS AND SECURITIES OF OBLIGATION OR CO‑OBLIGATION

Section I – Registration

Art. 3 The institutions mentioned in Art. 1 must, in financial‑asset and securities registration systems authorized by the Central Bank of Brazil or by the Securities and Exchange Commission (CVM), register credit titles and time‑deposit contracts that fall under Art. 2, item I, letters “a” and “b”, and the securities of their obligation or co‑obligation to pay.

§ 1 The following are exempt from the registration requirement set out in the caput, without prejudice to specific regulation:

I – financial assets and securities that are the object of centralized deposit;

II – financial assets and securities that have already been registered by third parties in the manner described in the caput, in the case of a co‑obligation operation;

III – financial assets and securities issued by the same institution on the same date, in favor of the same holder, whose aggregate amount by instrument type is less than R$ 5,000.00 (five thousand reais);

IV – Bank Deposit Receipts (RDBs) issued up to 180 days after the effective date of this Resolution; and

V – RDBs issued by the same institution on the same date, in favor of the same holder, whose aggregate amount is less than:

a) R$ 20,000.00 (twenty thousand reais) if issuance occurs between 181 and 360 days after the effective date;

b) R$ 10,000.00 (ten thousand reais) if issuance occurs between 361 and 540 days after the effective date;

c) R$ 5,000.00 (five thousand reais) if issuance occurs between 541 and 720 days after the effective date; and

d) R$ 1,000.00 (one thousand reais) if issuance occurs on or after 721 days after the effective date.

§ 2 The institutions mentioned in Art. 1 must carry out the registration referred to in this article by the second business day following the issuance or contracting of the obligation or co‑obligation operation, without prejudice to specific regulation.

§ 3 The registration of RDBs issued by credit cooperatives may be performed by the central credit cooperative or by the system confederation to which the issuing institution is linked.

Section II – Centralized Deposit

Art. 4 The institutions mentioned in Art. 1 must deposit, in systems that carry out the activity of centralized deposit of financial assets and securities authorized by the Central Bank of Brazil or by the CVM, the credit titles covered by Art. 2, item I, letter “a”, and the securities of their issuance that qualify for centralized deposit, as a condition for:

I – trading on a centralized, multilateral electronic platform administered by an entity authorized by the Central Bank of Brazil or by the CVM; and

II – the assumption of any of the responsibilities set out in Art. 8 of this Resolution by the holder or by a custodian institution distinct from the issuer or from the institution obliged to make payment of the title.

§ 1 The trades referred to in item I of the caput include subscription, purchase, sale or loan of financial assets and securities.

§ 2 A centralized, multilateral electronic platform, for the purposes of item I of the caput, is a platform where offers relating to a given financial asset or security are directed to a single trading environment and made available for acceptance by any of the parties authorized to trade on the platform.

§ 3 The condition established in the caput must be applied without prejudice to specific regulation.

Section III – Common Provisions for Registration and Centralized Deposit

Art. 5 The information relating to registration or centralized deposit referred to in Arts. 3, 4 and 12 must include the characteristics of the financial assets and securities and, when applicable:

I – the return‑structure and cash‑flow schedule of the financial assets and securities;

II – early redemptions;

III – subscription, loan and purchase‑sale transactions of financial assets and securities;

IV – acceptance operations; and

V – the creation of liens and encumbrances.

Art. 6 Institutions mentioned in Art. 1 are prohibited from simultaneously maintaining the same financial asset or security both registered and deposited, or registered in distinct registering entities.

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CHAPTER IV

ACTIVE PORTFOLIO OF FINANCIAL ASSETS AND SECURITIES

Art. 7 Institutions mentioned in Art. 1 may only hold in their respective portfolios credit titles covered by Art. 2, item I, letter “c”, and securities that are duly registered or deposited pursuant to this Resolution.

§ 1 The provision of the caput also applies to:

I – redeemable preferred shares;

II – privately issued debentures; and

III – public bonds.

§ 2 The following are exempt from the obligation set out in the caput, without prejudice to specific regulation:

I – credit titles representing credit operations of the institutions mentioned in Art. 1; and

II – credit titles and securities that are in a defaulted and unredeemed state.

§ 3 The financial assets and securities mentioned in this article must be kept in individualized registration or deposit accounts.

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CHAPTER V

DUTIES OF CUSTODIAN INSTITUTIONS

Art. 8 For the purposes of this Resolution, the custody service of financial assets covered by Art. 2, item I, letters “a” and “e”, includes, where applicable:

I – the preservation, control and reconciliation of financial‑asset positions in accounts held in the name of the holder;

II – the preservation, control and processing of movement instructions received from holders or from persons authorized by contract or mandate;

III – the handling of events incident to the custodied financial assets;

IV – the physical safekeeping of non‑registered titles; and

V – the performance of procedures necessary for the creation and termination of the centralized‑deposit regime for financial assets at the request of their effective holders or of persons authorized by contract or mandate.

Single paragraph. Custody of scriptural credit titles covered by Art. 2, item I, letter “a”, that are not the object of centralized deposit, must be performed by the issuing institution of the assets.

Art. 9 Institutions mentioned in Art. 1 that provide the custody service referred to in Art. 8 must, upon request of the effective holders of the financial assets under their custody or of persons authorized by contract or mandate, where applicable:

I – create or terminate a centralized deposit;

II – transfer custody, as well as any associated rights and encumbrances; and

III – create or terminate liens and encumbrances.

Single paragraph. The activities referred to in the caput must be carried out within a maximum period of two business days counted from receipt of the request, without prejudice to specific regulation.

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CHAPTER VI

RECONCILIATION OF INFORMATION

Art. 10 Institutions mentioned in Art. 1 must adopt reconciliation procedures to ensure that the information maintained in their controls about registered, deposited or custodied financial assets and securities reflects the information stored in the registering entities or central depositaries.

Single paragraph. The level of detail of the reconciliation referred to in the caput must:

I – be compatible with the purpose of the stored information; and

II – cover, at a minimum, information on quantity and types of financial assets and securities, as well as on any liens and encumbrances that may have been created.

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CHAPTER VII

DUTIES OF PRUDENTIAL‑CONGLOMERATE‑LEADER INSTITUTIONS

Art. 11 Prudential‑conglomerate‑leader institutions, as defined in Cosif, must ensure that the provisions of Arts. 3 and 7 of this Resolution are applied, where applicable, to credit titles covered by Art. 2, item I, letter “f”, and to securities issued by or owned by entities not authorized by the Central Bank of Brazil but that are part of the conglomerate.

Single paragraph. The leader institutions mentioned in the caput must ensure that investment funds belonging to the prudential conglomerate have their issuance units registered or deposited, as the case may be.

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CHAPTER VIII

OPTIONAL REGISTRATION AND CENTRALIZED DEPOSIT OF FINANCIAL ASSETS

Art. 12 Institutions mentioned in Art. 1 may, at their discretion, register or centrally deposit the financial assets referred to in Art. 2, provided that mandatory registration or deposit requirements contained in specific regulation or in Arts. 3, 4, 7 and 11 of this Resolution are respected.

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CHAPTER IX

FINAL PROVISIONS

Art. 13 The Central Bank of Brazil is authorized to establish the procedures necessary for the execution of this Resolution, including the detailing of the information referred to in Art. 5.

Art. 14 The registration of financial assets and securities covered by this Resolution, except RDBs, relating to operations contracted before its effective date and not redeemed or settled within 180 days after its effective date, must be completed by that latter date.

Single paragraph. The registration of an RDB issued by the same institution on the same date, in favor of the same holder, whose aggregate amount exceeds R$ 1,000.00 (one thousand reais), relating to operations contracted within 720 days after the effective date of this Resolution and not redeemed or settled within 900 days after its effective date, must be completed by that latter date.

Art. 15 References to the Resolutions mentioned in Art. 17, as well as any normative acts based on them, shall henceforth refer to this Resolution.

Art. 16 This Resolution enters into force 180 (one hundred and eighty) days after its publication date.

Art. 17 The following Resolutions are revoked: No. 1,779 of 20 December 1990, No. 3,272 of 24 March 2005, and No. 3,307 of 31 August 2005.

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Ilan Goldfajn
President of the Central Bank of Brazil