BRAZIL Law and Practice Contributed by: Thomas Gibello Gatti Magalhães, André Dágola Brostoline and Luisa Grespan Danhoni Neves, Magalhães & Zettel
tion from BCB. This rule outlines the essential requirements for granting authorisation, includ - ing: • the economic and financial capacity of the controllers, individually or jointly, compatible with the capital necessary for the structuring and operation of the institution, as well as the contingencies arising from the market dynam - ics; • the lawful origin of the resources used in the payment of the capital stock, in the acquisi - tion of control and qualified interest; • the economic and financial viability of the enterprise; • compatibility of the information technology infrastructure with the business complexity and risks; • the unblemished reputation of holders of positions in statutory or contractual bodies, of controllers and holders of qualified interest, in the case of individuals; • knowledge, among the administration, of the business line, the segment in which the insti - tution intends to operate, the market dynam - ics, the sources of operational resources, the management of the activities and risks associated with them; • technical training of the administrators, compatible with the functions to be exercised during their term in office; and • compliance with the minimum capital and equity requirements provided for in the regu - lations in force. To supplement these guidelines, BCB Norma - tive Ruling No 299/2022 describes the pro - cedures, terms and information necessary to instruct authorisation requests regarding finan - cial institutions governed by CMN Resolution No 4,970/2021.
Requests for authorisation must be filed with BCB, addressed to the Financial System Organi - sation Department (DEORF), accompanied by the relevant documents and information listed in Article 5 of BCB Normative Ruling No 299/2022. With regard to terms, BCB Resolution No 317/2023 establishes the maximum term for the administrative decision on requests for public acts for the release of economic activity sub - mitted to BCB. The rule sets a limit of three 360 days for the analysis and decision on the authorisation for the organisation and opera - tion of financial institutions, thus ensuring that a reasonable amount of time is allowed for the examination of requests submitted to the regula - tory authority. Once the authorisation for the institution’s oper - ation has been granted, BCB shall be informed of the start date of the activities within five days after the start of operations, by means of regis - tration in the Central Bank’s Information System on Entities of Interest (“Unicad”). Brazil has a diverse range of financial institu - tions, classified according to the line and type of activity they carry out, namely: • development agencies; • savings and loans associations; • commercial banks; • foreign exchange banks; • development banks; • investment banks; • multiple banks; • mortgage companies; • credit unions; • leasing companies; • foreign exchange brokerage companies; • securities brokerage companies; • direct credit companies;
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