The Securities and Exchange Commission – CVM and the Central Bank of Brazil – BCB published on December 3, 2024, Joint Resolution No. 13, on foreign investments in the financial and securities markets, bringing a series of simplifications to the national market. 

The new rule deals with the investment of non-resident individuals and legal entities in the financial and securities markets, revokes Resolution (CMN) No. 4,373 and, according to national market entities, “should result in greater attractiveness, reduced compliance costs and positive impacts on the business environment and the permanence of these investments in Brazil”. 

Records made under Resolution (CMN) No. 4,373 will be exempt from updating and will remain available for consultation for a period of one year after the new regulations come into effect. 

Changes implemented by Joint Resolution No. 13 arose from a study that also includes contributions made through the BCB-CVM Social Participation Notice No. 103, dated August 30, 2024, in which class associations, law firms and market entities participated.  

Among the innovations, the following stand out:  

• Simplification of procedures for non-resident investors and adoption of value criteria for waiving the need for a representative;  

• Facilitation of applications via Non-Resident Account – CNR and prepaid payment account; 

• Greater clarity in the process of changing the investor’s residence status; 

• Expansion of assets eligible for collateral Depositary Receipts – DRs; 

• End of Electronic Declaratory Registration, Portfolio Module – RDE-Portfolio; 

• End of the need for mandatory simultaneous exchange transactions and international transfers in reais; 

• Extension of the possibility of receiving amounts abroad from non-resident investors relating to investments in adjustments and settlement in the country of agricultural derivatives in the country; 

• Inclusion of clearing and settlement chambers and service providers in the list of entities that can act as representatives of non-resident investors; 

• Extension to ten years of the retention period for information and supporting documents; and 

• Adoption of a “risk-based approach” to request documents relating to investments. 

The new rules come into effect on January 1, 2025. 

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