Finance & Capital Market Newsletter – May

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Posted: 06/11/2021

Madrona News – Finance & Capital Market Newsletter

CVM opens Public Hearing on accounting standards and auditing

On May 6, 2021, the Brazilian Securities Commission (“CVM”) placed in public hearing the Review of Technical Pronouncements CPC No. 18, which extends the non-mandatory expedient for lessees introduced by the Review of Technical Pronouncements CPC No. 16.

The purpose is to respond to requests from some interested parties due to the prolongation of the COVID 19 pandemic. Furthermore, the draft is fully aligned with the amendment to IFRS 16 – Lease, approved in March 2021 by the International Accounting Standards Board (“IASB”).

The Hearing will be available for suggestions and comments until June 7, 2021. For more information, access the details in the Public Hearing Notice.

News link: https://www.gov.br/cvm/pt-br/assuntos/noticias/cvm-abre-audiencia-publica-sobre-normas-contabeis-e-auditoria

CVM publishes new guidelines for independent auditors

On May 7, the Brazilian Securities Commission (“CVM”) issued guidelines for independent auditors in line with capital market practices.

The document version is a result of the supervision and inspection of the regulated companies. The guidelines seek to facilitate the understanding of participants, preventing errors and misconduct.

For more information, access the details in Circular Letter CVM/SNC/GNA 01/21.

News link: https://www.gov.br/cvm/pt-br/assuntos/noticias/cvm-publica-novas-orientacoes-para-auditores-indepen

CVM publishes new resolutions on regulatory sandbox and suitability

On May 11, 2021, the Brazilian Securities and Exchange Commission (“CVM”) edited the following resolutions:

(i) Resolution No. 29: referring to the rules for the constitution and functioning of an experimental regulatory environment (regulatory sandbox); and
(ii) Resolution No. 30: referring to the duty to verify the suitability of products, services and operations to the client’s profile (suitability).

The adjustments are part of the review and consolidation of normative acts, determined by Decree No. 10,139/19.

The rules came into force on June 1, 2021. For more information, access the details in Resolutions nº 29 and No. 30.

News link: https://www.gov.br/cvm/pt-br/assuntos/noticias/cvm-publica-novas-resolucoes-sobre-sandbox-regulatorio-e-suitability

CVM publishes new Resolutions on market infrastructures

On May 19, 2021, the Brazilian Securities Commission (“CVM”) edited the following resolutions on securities market infrastructures for specific purposes, namely:

(i) CVM Resolution 31: provides for the centralized deposit of securities;
(ii) CVM Resolution 32: provides for the custody of securities;
(iii) CVM Resolution 33: provides for the bookkeeping of securities and issuance of securities certificates; and
(iv) CVM Resolution 34: provides for the clearing and settlement of securities transactions and securities lending through cameras.

The normative acts were edited separately as they deal with different economic activities, although they all deal with the functioning of the securities market. The adjustments are related to the consolidation and review of the normative acts provided for by Decree No. 10,139/19 and do not imply changes in merit.

The rules came into effect on June 1, 2021. For more information, access the details in Resolutions 31, 32, 33 and 34.

News link: https://www.gov.br/cvm/pt-br/assuntos/noticias/cvm-publica-novas-resolucoes-sobre-infraestruturas-de-mercado

CVM publishes new resolutions on intermediation of securities transactions

On May 26, 2021, the Brazilian Securities Commission (“CVM”) edited the following resolutions on the intermediation of securities transactions:

(i) CVM Resolution 35: deals with rules and procedures to be observed in the intermediation of securities transactions in securities markets;
(ii) CVM Resolution 36: deals with rules and procedures for the organization and operation of merchandise brokers.
(iii) CVM Resolution 37: deals with the activity of obtaining pulverized orders for the sale of shares.

The goal is to increase the efficiency of regulation, maximizing the economic well-being resulting from full, efficient and integral competition among the participants. The adjustments are related to the consolidation and review of the normative acts provided for by Decree No. 10,139/19 and do not imply changes in merit.

The rules take effect on July 1, 2021. For more information, access the details in Resolutions 35, 36 and 37.

News link: https://www.gov.br/cvm/pt-br/assuntos/noticias/cvm-publica-novas-resolucoes-sobre-intermediacao-de-operacoes-com-valores-mobiliarios

CVM guides intermediaries and market administrators

On May 26, 2021, the Superintendence of Relations with the Market and Intermediaries (“SMI”) of the Brazilian Securities Commission (“CVM”) was released the Circular Letter SMI 02/21 with guidelines for market administrators and intermediaries.

The technical area emphasizes the importance of participants adopting the procedures and controls, with a focus on ensuring the effectiveness of the penalties of temporary prohibition to carry out modalities of operation in the securities market applied by the CVM and the agreements on non-operation in the securities market assumed in the Terms of Commitment with the Autarchy.

Therefore, market administrators must adopt controls so that persons convicted by the CVM are prevented from carrying out transactions during the term of the penalty.

For more information, access the details in Circular Letter SMI 02/21.

News link: https://www.gov.br/cvm/pt-br/assuntos/noticias/cvm-orienta-intermediarios-e-administradores-de-mercado

BC improves credit card standards

On May 19, 2021, the Central Bank (“BC”) published Resolution BCB No. 96, which aims to simplify the alignment of post and prepaid payment account rules to account regulation in a single regulation. chain. With this resolution, payment account rules are aligned with deposit account rules.

Some other measures, such as the inclusion of the need to include the consolidated total balance of future obligations already contracted and the definition of the minimum provisions that must be included in the contract, should be included in the invoice for post and prepaid accounts. In addition, it will be mandatory to send the credit card holder and the respective statements and invoices.

For more information, access the details in Resolution BCB No. 96

News link: https://www.bcb.gov.br/detalhenoticia/546/noticia