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Foreign Investor
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In Brazil, the access of non-resident investors (or foreign) to the financial market and capital is
regulated by
Resolutions 2689 and 2687, 26/01/2000, of the National Monetary Council.
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Although both deal with non-resident investors, they differ greatly in both the operational aspect
and in applicability.
In general, Resolution 2689 gives access to non-resident investor
same markets available to investors resident
there, then the need for the investor intern
resources in Brazil in local currency, through hiring of foreign exchange
operations. Already Resolution 2687 states that non-resident investors liquidate their operations abroad in the
accounts of stock exchange commodities and futures that is operating, but are restricted to operations in
agricultural markets included in this resolution. |
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It is worth noting that the non-resident investor can benefit from agreements that protect from double taxation.
Moreover, if the rate of income tax of their country of origin is less than 20%, the rate will be the incident of the
resident. Finally, with incidence of income tax, this occurs at the same rate and at the same time that this incident in operations resident investors, which in the case of applications in the case of investment funds, the focus will be given only in rescue of quotas.
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We stress that the Securities Commission, through the Instruction 419/2005, created the possibility of using the simplified register
the non-resident investor. Based on this instruction, in general, the brokers (and custodians) can make a simplified register
of their clients if they are not residents attended the following prerequisites:
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• the investor must be non-resident client of foreign intermediary institution, to which is duly registered as the law of the country of origin of this;
• assume the intermediary institution, to the broker, the obligation to provide, on request, all information required by the CVM Instructions that have on the registration of investors under the securities market, duly updated and other information
required by public agencies Brazilians with supervisory powers and
• the regulator of the capital market of the country of origin of foreign intermediary institution has concluded with the CVM agreement of mutual cooperation that facilitates the exchange of financial information to investors. |
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| Moreover, the country where the foreign intermediary institution is located should not be considered high risk in respect of money laundering and financing terrorism, and should not be classified as non-cooperative international bodies in combating the illicit such.
This simplified instruction and expedite access by non-resident investors to the Brazilian capital market. |
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BEST Brazil:
To learn more about the Brazilian capital market, the non-resident investor interest may visit the website of BEST Brazil: http://www.bestbrazil.org/
This is an initiative of the Securities Commission (CVM), the Central Bank of Brazil (BCB), the Department of National Treasury (TN), the Stock Exchange
of São Paulo (BOVESPA), the Company's Brazilian Settlement and Custody (CBLC), the Commodities & Futures Exchange (BM&F) and the National Association of Investment Banks (ANBID).
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| The objective is to promote the Brazilian capital market to the community of international investors and its principal activities consist of road shows,
meetings and other projects in major financial centers worldwide.
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More information at:
http://www.portaldoinvestidor.gov.br/InvestidorEstrangeiro/tabid/57/Default.aspx
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