On Dec. 3, BRZ CB issued resolution to simplify foreign investments.
BRZ CB and BRZ CVM published Joint Resolution No. 13 providing for the investment of non-resident individuals and legal entities in the financial and securities markets.
Aims to expand the possibility of foreign portfolio investments in a simplified manner.
And improve access to the financial and securities markets for non-resident investors.
Resulted from extensive study through BCB-CVM Social Participation Notice 103/2024.
Highlights
Adopts value criteria for exemption from the need for a representative for investors.
The measure reduces compliance costs, facilitating foreign investment in the country.
Simplifies procedures for non-resident investors re the obligation to set up a custodian.
Does not eliminate the role of the custodian but makes prior establishment optional.
Brings the form of investment by non-residents closer to the conditions currently applicable to resident investors, also benefiting people who have moved abroad.
Provides greater clarity in the process of changing the investor's residence status.
Allows funds from non-residents through the issuance of depositary receipts abroad.
Ends the Electronic Declaratory Registry, Portfolio Module (RDE-Portfolio) and the need for mandatory simultaneous exchange operations and international transfers in reais.
Includes clearing and settlement chambers and service providers as representatives.
Extends the retention period for information and supporting documents to 10 years.
Circular Letter
Currently, BRZ CVM generates a fictitious code to serve the B3 system for registration.
Code will now be generated by B3 itself, which is developing this new functionality.
BRZ CVM will continue to generate the code for 30 days after the launch of new tool.
The key document for obtaining the fictitious document from B3 will be the CPF.
CPF will become mandatory for the registration of non-resident individuals in Jan. 2025
Based on the CPF, the system will check if information already exists in the Integrated Registration System (SINCAD) and will start generating the fictitious document.
If the investor does not have a CPF, it will be requested through integration of B3/CVM.
Workshop is scheduled for Jan. 2025 to present the project and issue clarifications.
Effectiveness
The standard in Joint Resolution 13 will come into effect on Jan. 1, 2025.
Regulators
BRZ CB; BRZ CVM
Entity Types
B/D; Bank; Exch; IA; Inv Co
Reference
PR, Nt, Res 13, Cir 8/2024/CVM/SIN, 12/3/2024
Functions
AML; Compliance; Financial; Operations; Record Retention; Registration/Licensing; Trade Reporting; Trading
