Financial Institutions Recovery Plans in Brazil

Continuing the process of adoption in Brazil of the international standards of prudential regulation, on June 30, 2016 the Brazilian Monetary Council (Conselho Monetário Nacional – CMN) issued Resolution No. 4,502 (CMN Res. 4,502/2016), laying down minimum requirements to be observed in the preparation and implementation of recovery plans for financial institutions and other entities authorized to operate by the Central Bank of Brazil (Banco Central do Brasil – Bacen). This is an important step to incorporate to the Brazilian regulation the best international regulatory practices, in accordance to the recommendations of the Financial Stability Board

I. Introduction

According to CMN Res. 4,502/2016, systemically important institutions must comply with minimum requirements in the preparation and implementation of recovery plans, such as the identification of critical functions for the Brazilian Financial System (Sistema Financeiro Nacional - SFN), the production of