BRAZIL Law and Practice Contributed by: Thomas Gibello Gatti Magalhães, André Dágola Brostoline and Luisa Grespan Danhoni Neves, Magalhães & Zettel
• the improvement of the efficiency of interbank operations in the foreign exchange market; and • the regulation of the use of virtual assets in foreign exchange and international capital transactions. With regard to prudential regulation, the follow - ing objectives are highlighted: • the completion of the implementation of Basel III, with the introduction of new capital requirements for market risk and the review of the leverage ratio; • the establishment of individualised risk man- agement requirements for certain institutions that are part of prudential conglomerates; • the finalisation of the prudential regulation applicable to Payment Institutions; and • the adjustment of the prudential framework to incorporate the treatment of exposure to virtual assets. In the context of sustainability, the main topics to be discussed include: • the inclusion of quantitative information in the disclosure of data on Social, Environmental and Climate Risk Management (GRSAC); and • the establishment of sustainability information disclosure rules, in line with the guidelines of the International Sustainability Standards Board (ISSB), IFRS S1 (which deals with general requirements for the disclosure of financial information related to sustainabil - ity) and IFRS S2 (focused on climate-related disclosures). Both rules aim to allow investors to assess companies from the perspective of the sustainability of their businesses, as well as the climate impacts on their operations and assets, in addition to promoting the inte -
gration of this information with the financial statements. In the innovation axis, the main topics under dis - cussion are: • Open Finance, with the purpose of estab - lishing, through a new rule, a governance structure responsible for the implementation, maintenance and monitoring of the sharing of customer information on financial products and services between institutions authorised by BCB, in addition to regulating the start-up journey without redirection; • the regulation of Virtual Asset Service Provid - ers (PSAVs); • the regulation of Banking-as-a-Service (BaaS), allowing partnerships between financial and non-financial institutions to offer financial services; • the preparation of a study on the need to regulate the processes of the issuance, book - keeping and trading of tokenised assets; • the carrying out of a study on the risks and impacts of the use of artificial intelligence by financial institutions, with an emphasis on conduct and model risks; and • the creation of a new type of ticket aimed at the settlement of financial assets, such as duplicates and receivables. In addition, there will be discussions on co-oper - atives, with the purpose of establishing, through a normative act, the form of organisation and operation of co-operatives as provided for in Supplementary Law No 196/2022, which regu - lates the National Co-operative Credit System. It is also intended, through a normative act, to regulate the edition and approval of a catalogue of financial assets by financial institutions, which will serve as a reference for the authorisation processes related to the provision of services for
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