BRAZIL: Brazil SEC Develops Foreign Investors System

Tuesday May 26 2015

BM&FBOVESPA and the Brazilian Federal Revenue Service have helped the Securities and Exchange Commission of Brazil (CVM) to develop the Sistema de Investidores Estrangeiros (foreign investors system), which creates a more dynamic trading authorization process. One of the main changes is an automatic process for granting individual taxpayer numbers (CPFs) to new investors classified as natural persons.

Previously, before they could start trading, investors had to request that the consulate or embassy in their locality register them with the Brazilian Federal Revenue Service, for a CPF number. They then had to request that their global custodian register them with CVM. This tended to be a drawn out process. While this first model is being maintained, from now on both of these requests will be made automatically by the global custodian. As a result, investors’ registration requests will be attended to immediately, both at CVM and at the Brazilian Revenue Service. The change also reduces administration costs and the time it takes to receive authorization.

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