ANNOUNCEMENT 26 Sep 2019
The Brazilian government has adopted new legislation simplifying the entry procedures for foreign investments in the local financial system.
NUMBER OF INTERVENTIONS
Presidency of the Republic. Presidência da República. Secretaria-Geral. Subchefia para Assuntos Jurídicos. Decreto Nº 10.029 de 26 de Setembro de 2019. Available at: https://www.planalto.gov.br/ccivil_03/_ato2019-2022/2019/decreto/d10029.htm
Central Bank of Brazil. Banco Central do Brasil. Notícias. "BC passa a autorizar participação de capital estrangeiro em instituições financeiras brasileiras" de 1 de Outubro de 2019. Available at: https://www.bcb.gov.br/detalhenoticia/378/noticia
On 26 September 2019, the Brazilian Executive has adopted Presidential Decree 10,029 simplifying the entry procedures for foreign financial institutions that want to open a branch in Brazil as well as for foreign investors willing to invest in the financial sector.
According to the Central Bank of Brazil, previously to the new legislation, this institution was responsible for carrying out a technical analysis which was later transferred to the National Monetary Council which subsequently referred the case to the Civil House. Then, the case was studied by the Presidency of the Republic who if it considered that the request was of interest of the country, issued a decree for each request that was approved.
With the new legislation, the process is simplified and mimic the one followed for local investors which only requires a technical assessment by the Central Bank which is directly recognized by the Presidency of the Republic.
It is expected that the changes introduced speeds up the process for foreign actors willing to enter the Brazilian National Financial System.
The new Decree has entered into force on 27 September 2019.