The change was defended by CVM and Bacen.

The National Monetary Council (CMN) released individual non-resident investors from the obligation to constitute a custodian. The measure is supported by the Brazilian Securities and Exchange Commission (CVM) and by the Central Bank of Brazil (Bacen).

These investors will also start to follow the same provisions and procedures observed in the provision of custody services to resident investors, and these services may be performed by the representative intermediary hired in the country. Such changes might allow to reduce costs related to the appointment of a custodian, making them accessible to non-resident individuals who want to invest in a portfolio through retail operations.

The measure is in line with initiatives that have sought to improve the regulatory framework for the capital market in Brazil, simplifying and stimulating investments in that market (Capital Market Initiative – IMK), in addition to aligning itself with Brazil’s initiative to join the OECD and their Codes of Liberalization, in particular.

Source: CMN News