Fintechs are companies that use technology intensively to offer financial products with disruptive, effective technology or business models and with user-friendly interfaces and language for the end user of these services, via app (applications) or browser (computer).
Since Resolution 4,656 was enacted by the National Monetary Council (CMN) on April 26, 2018, Direct Credit Societies (SCD) and Loan Societies among Persons (SEP), better known as credit fintechs, have been included in the list of institutions authorized to operate by the Central Bank of Brazil and, consequently, to be part of institutions regulated and supervised by the Central Bank.
SCDs are financial institutions whose purpose is to carry out lending, financing and credit rights acquisition transactions exclusively through an electronic platform, using financial resources that have, as their sole source, own capital.
SEPs are financial institutions whose purpose is to carry out loans and financing transactions between people, exclusively through an electronic platform (peer-to-peer lending).
Other services that can be provided by SCDs and SEPs:
- credit analysis for third parties;
- collection of credit from third parties;
- insurance representative in the distribution of insurance related to loan operations, financing and acquisition of credit rights, in accordance with the regulations of the National Council of Private Insurance (CNSP);
- issuance of electronic money, under the terms of the regulations in force.
The functioning of SCD and SEP depends on prior authorization from the Central Bank of Brazil. JL Rodrigues provides advisory services to interested companies, which must meet the necessary requirements for the examination by the Central Bank of Brazil of these requests and, therefore, need to prove their ability to become a financial institution, which requires:
- Analysis of the reputation of the members of the future control group; Absence of restrictions on participants in the control group and holders of qualifying holdings;
- Realization of the corporate act of incorporation;
- Payment and payment of capital to the Central Bank of Brazil, pursuant to Law No. 4,595 of December 31, 1964;
- Election or appointment of the members of the statutory bodies, subject to the regulations in force;
- Reasoned justification for the establishment of the institution;
- Share capital of at least R$ 1 million;
- Indication of the services to be rendered, including if there is interest in issuing electronic currency;
- Market opportunities that justify the venture;
- Competitive differentials;
- Indication of technological systems and resources;
- Demonstration of interest in opening a settlement account;
- Identification of the control group;
- Indication of the type of background, if any;
- Indication of the form of trading of quotas;
- Indication of the number of shareholders;
- The list of the six main shareholders;
- The total value and composition of the assets that will make up the capital stock;
- Indication of actuation segments;
- Presentation of the company's profitability history until the request for authorization in the Central Bank;
- Time horizon forecast;
- Presentation of disinvestment policy;
- Proof of the origin and the respective financial movement of the resources used in the enterprise by the controllers and by the holders of qualifying holdings;
- Authorizations and declarations signed by all members of the control group and by all holders of qualifying interest in matters requested by the Central Bank.
In addition to the assistance in the instruction of the process containing all the above mentioned information, JL Rodrigues will follow the entire procedure, from the protocol of the request to the approval of the request, including for the answers to possible questions made by the Municipality during the examination of the request. The Central Bank may also, in the course of the examination of the process, summon managers and controllers to present clarifications and technical details of the undertaking.
Security and Cybersecurity Policy
The CMN published Resolution No. 4,658, which provides for the obligation of financial institutions to implement a cyber security policy and establishes requirements for the contracting of data processing and storage services and cloud computing. The measure defines the minimum content of the cybersecurity policy and determines the implementation of an action plan, which should provide for the procedures and controls adopted by the institution in preventing and responding to incidents related to the cybersecurity environment. The regulation foresees that the institutions implement the security policy until May 6, 2019..