Proposal for rules for the mandatory registration of capitalization operations

The Superintendence of Private Insurance (“SUSEP”) placed for public consultation Public Notice No. 011/2022, which publicizes the draft Circular on the conditions for the registration of capitalization operations in registration systems homologated and managed by registration entities licensed by the Regulator.

The public consultation with the market on the new provisions for the insurance line is a measure in continuity with the project “Operations Registration System – SRO”, in order to regulate the registration of products marketed by capitalization companies, especially the definition of deadlines for the commencement of the registration and its minimum required data.

The Resolution introduces the following news on the matter:

• MINIMUM INFORMATION FOR MANDATORY REGISTRATION

Inclusion of a minimum list of data that must be submitted to SUSEP, including elements on the capitalization bond and financial liquidity of the contributions, as well as information about intermediaries, redemption, lucky draws, and technical provisions, depending on the product commercialized.

• DEADLINES FOR THE REGISTRATION OF CAPITALIZATION BONDS

As of February 01, 2023, the registration of capitalization operations that are in force from such date onwards becomes mandatory.

Operations that are already in effect must be registered within 30 (thirty) business days after said date, while those whose validity has already expired must be registered within 10 (ten) business days after the first financial transaction that takes place after February 01, 2023.

Regarding the transactions involving lucky draws, requested redemptions and contributions, if these have not been settled by February 01, 2023, the registration of the transactions must be made within 20 (twenty) business days.

• REGISTRATION OF OPERATIONS – TRIGGERING EVENT

Provision of a period of 2 (two) working days for the supervised companies to provide the registration of capitalization operations is established. The initial deadline is subject to the following triggering events:

– issuance of the capitalization bond;

– financial settlement of the contribution;

– registration of the triggering event;

– assignment of the redemption or lucky draw rights;

– conclusion of the initial, partial, or final assessment of a triggering event by the supervised company; and

– closing of the monthly trial balance.

• REGISTRATION OF INTERDICTIONS OF THE SUPERVISED COMPANIES

 Obligation of the supervised companies to register information regarding judicial interdictions and similar measures that may be imposed on the bond offered for sale.

Finally, interested parties may send their comments on the Public Consultation until September 14, 2022, by e-mail to corec.rj@susep.gov.br,  in the format established in the standardized table available on SUSEP’s website.

Demarest’s Insurance, Reinsurance, Health and Private Pension team is available to provide any further clarifications that may be necessary on this and other related topics.