Put: Andre Jerusalem

As of July 1, 2022, CMN Resolution No. 4,970 (“Resolution 4970˜) will come into force, which will make the system for granting the authorizations necessary for the operation of financial institutions more dynamic.   

In short, the aforementioned resolution seeks to simplify or make the authorization process more rigorous, depending on the type of authorization being requested by the financial institution. In other words, instead of using the same standard process for all types of financial institutions, from the entry into force of Resolution 4970 this will be done in a “customized” manner depending on the nature of the operations and the risks associated with each type of financial institution. The assessment of the same requirement may be more complex or simpler.  

With this measure, the Central Bank expects that the authorization processes will be faster, generating less burden both for the financial institution requesting the authorization and for the BCB, which will have to analyze the application. For example, with the new resolution, a business plan will no longer be required for operating authorizations and certain interested parties will no longer need to publish a statement of purpose. 

This Resolution has its origins in the Economic Freedom Law, which seeks to make the national financial system more efficient and less costly.