On June 25, the Central Bank of Brazil (BCB) published the Public Consultation Notice 101/24 on the proposal for a resolution of the National Monetary Council (CMN). The resolution consolidates and improves the rules on the incorporation, organization and operation of credit, financing and investment companies (SCFIs) – popularly known as "financial companies".

The public consultation notice is part of the effort to review and consolidate normative acts lower than decrees, determined by Decree 12,002/24. Currently, the norms related to SCFI are dispersed in the regulation issued by the CMN, and in several other normative acts.

These rules were issued starting with Ordinance 309/59, of the Ministry of Finance, in a time in which the Brazilian financial market was very different, both from an economic point of view and in terms of its institutionality. The 1959 rule precedes the laws and regulations on financial institutions and capital markets.

The CMN's proposed resolution seeks to to consolidate the existing rules in a single normative act, with the aim of offering legal certainty and competitiveness to institutions in this segment.

Originally included in Ordinance 309/59 was the provision for the existence of:

  • credit and financing companies, focused on operating in the credit market;
  • investment companies, whose operations took place in the capital markets, but which have lost its legal basis since the entry into force of article 46, item I, of Law 14,754/23; and
  • mixed societies.

This division is not maintained in the proposed regulation.

The resolution provides that SCFIs must be incorporated as corporations and have as their corporate purpose:

  • providing loans and financing;
  • acquiring, assigning, refinancing and administering credit rights; and
  • provide guarantees.

These are activities currently practiced by the SCFIs. In addition, these institutions must permanently observe minimum limits of paid-in capital stock and equity fixed BRL 7 million, if they are headquartered in São Paulo or Rio de Janeiro, and BRL 4.9 million, if headquartered in other locations in the country.

In relation to their funding, the SCFIs could use their own funds, as well as funds arising from the issuance of:

  • time deposit certificates (CDB);
  • agribusiness letters of credit (LCA);
  • secured real estate bills (LIG);
  • financial bills;
  • bills of exchange;
  • housing credit certificates;
  • time deposit certificates securities (3CB);
  • time deposit receipts (RDB);
  • interbank deposits (DI);
  • secured time deposits; and
  • Transfers, loans and financing originating from national and foreign financial institutions, national and foreign entities focused on development and development actions, and official funds.

Also, the proposed resolution also opens up various activities carried out by financial and payment institutions to SCFIs. These activities include:

  • purchase and sale of securities;
  • operation in non-organized OTC markets;
  • management of securities portfolios;
  • issuance of e-money and post-paid payment instruments;
  • acting as a payment initiation service provider;
  • provision of credit analysis and collection of credit rights to third parties;
  • acting as fiduciary agent; and
  • Acting as an insurance representative for insurance distribution.

In this format, jointly with act or fact of bringing the rules up to date, it is intended that the SCFIs have a regulation that follows the one applicable to institutions operating in segments in which competing or similar activities are performed, in addition to support the transit of the SCFI’s activities between the segments in which they operate.

The aim of the authority is to write up the rules of the SCFI to make them compatible with the current regulatory framework and with the practices currently adopted, harmonizing the regulation of these institutions with the activities of other segments of the financial system.

Individuals and civil society organizations interested in contributing to the public consultation may do up to August 31, through the "Active Consultations" section on the BCB website – where the public consultation notice can also be found – or by e-mail This email address is being protected from spambots. You need JavaScript enabled to view it.