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New resolution changes the rules for non-resident investors in Brazil

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By Camlia Cabral

In August 2020, the National Monetary Council (“CMN”) published Resolution No. 4,852, bringing new rules to non-resident investors in the Brazilian capital market. Among other provisions, this Resolution assigned the Securities and Exchange Commission (“CVM”) to provide for the registration of these investors, including with regards to a possible waiver.

On November 18, 2020, the CVM issued CVM Resolution No. 13/2020, which maintained the registration requirement for non-resident investors and established guidelines for doing so, which will come into effect December 1st, 2020 .

This new resolution revokes the previous Resolution CVM n° 560/2015, which, until now, regulated the activities of non-resident investors, as well as revoking the other Resolutions that changed it.

The new Resolution (13/2020) maintains the majority of the content of the previous one (560/2015), with few changes, among which we can highlight the confirmation of waiver of the requirement to hire the custodian agent by the non-resident investor in quality individuals, which was previously consolidated in CMN Resolution 4,852.

Also among the changes is the exclusion of the content of article 8 of Resolution 560/2015, which established a period of 1 business day from the receipt of the information for the effects of the registration of the non-resident investor.

Finally, it should also be noted that the legal representative of the non-resident investor is authorized to digitize required documents, under the terms of the legislation that regulates the digital file of documents, and, if the digital documents do not present harmful damages to the legibility of physical materials, the latter may be discarded.

The measure represents another step in the modernization of the CVM’s internal procedures, by authorizing digitalization for the purposes of sending non-resident documents, as well as optimizing the process of entry and registration of non-resident investors in Brazil.

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