New Rules in Brazil Applicable to Financial Institutions

At meeting of November 28, 2002, the Brazilian Monetary Council approved the new regulation to govern the requirements and procedures related to the organization, permit to operate, transfer of equity shareholding and corporate reorganization, as well the revocation of permit to operate of financial institutions¹and other equivalent entities that need prior approval of the Brazilian Central Bank ("Bacen") to operate in the country. The regulation is a Schedule to Resolution nº 3040 of November 28, 2002².

Financial institutions or equivalent entities subject to that regulation and expressly indicated therein, are the following: multiple, commercial, development and investment banks; credit, finance and investment companies; savings and loan companies; mortgage companies; development agencies; leasing companies; securities brokers; securities dealers and exchange brokerage companies. Bacen will enforce the conditions required for