Brazil: Non-resident account segregation at SELIC

01.09.2016

The Central Bank of Brazil (Banco Central Do Brasil), responsible for SELIC (Central Security Depository for Government Brazilian debt securities), communicated that the mandatory implementation of a segregated account structure at beneficial owner level for non-resident investors would be in place by end of December 2016.

Background

Clearstream Banking1 assets are currently registered in the local custodian’s nominee name (ITAU Unibanco, S.A.”ITAU”) on behalf of third parties and the breakdown of these assets is registered in ITAU’s books.

The new requirement implies that assets will have to be registered in the final beneficial owner name at SELIC.

Impact on customers

Current customer positions held at SELIC will be transferred to segregated accounts by December 2016. New SELIC account numbers will be provided to customers, without any need to instruct or to open a new segregated account.

For new accounts that are opened from August 2016 onwards, customers must request the account opening via MT599, as per the standard account opening process. For details, please refer to Creation Link Guide - Brazil.

As a result of this new account structure, SELIC will charge monthly fees that will be issued to customers as follows:

Custody fees

Average of asset under custody

Fee

Additional

Up to BRL 5 billion

0.00035%

n/a

From BRL 5 billion to BRL 10 billion

0.00023%

BRL 6000

Above BRL 10 billion

0.00015%

BRL 14000

Settlement transaction fee

BRL 1.00 will be charged for each settlement instruction sent to SELIC.

Inactive account fee

BRL 10 will be charged for each account kept at SELIC with no funds or transactions during the reference month.

Further information

The Creation Link Guide - Brazil will be updated accordingly.

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking Frankfurt (CBF) customers using CreationOnline), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.