Resolution CMN No. 5105 — Establishes minimum guidelines for the constitution, operation, authorization, and supervision of securities brokerage, foreign exchange brokerage, and securities distribution companies

Resolution

RESOLUTION CMN NO. 5,105, OF SEPTEMBER 28, 2023

Establishes minimum guidelines for the discipline of the conditions for constitution and operation, for the authorization for constitution and operation, and for the supervision of the activities of securities brokerage companies, foreign exchange brokerage companies, and securities distribution companies.

The Central Bank of Brazil, in accordance with Art. 9 of Law No. 4,595, of December 31, 1964, makes public that the Monetary National Council, in a session held on September 28, 2023, based on arts. 3, item V, of the aforementioned law, 2, item IV, and 9-A of Law No. 4,728, of July 14, 1965,

R E S O L V E D:

Art. 1 This Resolution establishes minimum guidelines that must be observed in:

I - the discipline of the conditions for constitution and operation of securities brokerage companies, securities distribution companies, and foreign exchange brokerage companies; and

II - the authorization for constitution and operation and in the supervision of the activities of securities brokerage companies, foreign exchange brokerage companies, and securities distribution companies.

Art. 2 The operation of the institutions mentioned in Art. 1 depends on prior authorization from the Central Bank of Brazil.

Art. 3 The principles that guide the regulation of the matters addressed in Art. 1 are:

I - prevention and mitigation of risks in the markets in which they operate;

II - provision, in a clear and precise manner, of the information necessary for free choice and for the taking of decisions by clients, explicitly stating, including, rights and duties, responsibilities, costs or burdens, penalties, and any existing risks in the performance of operations or the contracting of services;

III - meeting the needs of clients, especially the protection of their economic interests, nondiscriminatory treatment, privacy, and protection of personal data;

IV - promotion of efficiency, effectiveness, and competition in the markets in which they operate, as well as the adoption of all necessary measures to achieve the best possible result for their clients;

V - encouragement of innovation, observing the legality of operations, and to diversity of business models;

VI - increase in the supply, reliability, quality, and safety of products and services offered in the financial and capital markets;

VII - promotion of financial inclusion and reduction of transaction costs;

VIII - integrity, compliance, security, and confidentiality of operations and movement of funds in the markets in which they operate;

IX - transparency and adequacy of products and services offered or recommended to the needs, interests, and objectives of clients; and

X - implementation and maintenance of practices and policies of internal controls, of prevention of conflict of interest, and of prevention of money laundering, terrorist financing, or asset concealment, with the objective of complying with legislation and regulation in force.

Art. 4 The norms applicable to the institutions mentioned in Art. 1 must maintain:

I - uniformity and equivalence with the norms applicable to other institutions authorized to operate by the Central Bank of Brazil; and

II - convergence with internationally accepted standards, when they exist.

Sole Paragraph. The guidelines provided in the main text must be observed considering the nature and size of the institutions mentioned in Art. 1, as well as the complexity and risks of the operations carried out by these institutions.

Art. 5 This Resolution enters into force on
November 1, 2023.

Roberto de Oliveira Campos Neto

President of the Central Bank of Brazil