New nomenclature of normative acts issued by the Central Bank of Brazil

As of July 30, 2020, normative acts issued by the Central Bank will be denominated according to Decree No. 10,139, of November 28, 2019. This Decree, which came into force on February 3, 2020, provides for the revision and consolidation of normative acts inferior to decrees that are issued by bodies and entities of the direct, autonomous and foundational federal public administration. This measure has the objective of making the regulatory framework simpler, extinguishing obsolete norms, and generating transparency in bodies and entities of the Public Administration.

In accordance with the Decree, normative acts must be issued in the form of:

i. ordinances, which are normative acts issued by one or more singular authority;
ii. resolutions, which are normative acts issued by collegial bodies; and
iii. normative rulings, which are normative acts that, without innovating, guide the implementation of current rules by public agents, without the introduction of new legislation.

The Decree, however, does not exclude the possibility of i. exceptional use of other denominations of normative acts due to legal requirements; ii. issuing of ordinances, resolutions or joint normative rulings; or iii. issuing of personnel ordinances, which are acts referring to nominally identified public agents.

Ordinances, resolutions and normative rulings will be sequentially numbered in continuity with the series that were already in progress. In addition, the normative acts must establish a certain date for its entry into force and for its effects to take effect, at least one week after the date of its publication and always on the first day of the month or on its first business day, which will not apply only to cases of urgency justified in the administrative file.

The Decree also indicates that the competence to review and consolidate normative acts lies with the body or entity that issued them, the body or entity that assumed the powers of the extinct body or entity that issued them, or the body or entity with competence over the subject matter, when it is not possible to identify the responsible body or entity. Thus, it is the responsibility of the heads of the bodies and entities to define the competencies and the details of the procedures for the revision and consolidation work, designating an employee to perform monitoring.

The revision of the acts will result in: i. the express revocation of the act, which is mandatory for rules already tacitly repealed, for rules whose effects have been exhausted in time, and for current rules whose need or meaning could not be identified; ii. in the revision and issuance of the consolidated act on the matter with express revocation of the previous acts; or iii. in the conclusion regarding compliance of the act with the consolidation rules in force.

The consolidation will include the improvement of the act’s legislative technique, including the introduction of new divisions of the basic legal text; the fusion of provisions that are either repetitive or have identical normative value; the updating of the denomination of bodies and entities of the federal public administration; the updating of outdated terms and language; the elimination of ambiguities; the terminological homogenization of the text; and the suppression of the repealed provisions.

The Decree determines that the revision and consolidation will consist of the following phases:

i. screening, and, by September 30, 2020, the publication of the complete list of normative acts inferior to the current Decree;
ii. examination, which consists of analyzing and adapting normative acts to separate them by thematic relevance; and
iii. consolidation or revocation, which consists of the combination of the normative acts on a given matter into a single legal statute, with the express revocation of the acts incorporated into the consolidation.

The responsible bodies or entities will establish deadlines, by means of an ordinance issued by its manager, for the publication of the revised and consolidated rules in the Official Federal Gazette. All normative acts must go through the revision and consolidation steps, according to specific stages, with a maximum deadline of November 20, 2021. Additionally, such bodies and entities must disclose all normative acts on the electronic portal

Decree No. 10.139 also provides that any person may request the disclosure of normative acts on the electronic portal, or their inclusion in normative consolidation, or the adaptation of normative acts that are in disagreement with the rules provided for in the Decree. Such request must be made through the suggestion form available in the Federal Executive Branch Ombudsman System (e-Ouv).

Finally, the Decree stipulates that, as of December 1, 2021, the lack of consolidation of a normative act will cause public agents to:

i. be prohibited from imposing fines for unlawful conducts stipulated in the unconsolidated act for up to one month;
ii. receive denial of follow-up or rejection of an administrative request solely based on the non-compliance with the requirement contained in the unconsolidated act.

Due to the long-standing tradition of diverse nomenclature, the Central Bank had to adapt its denomination system. The new nomenclature will be as follows:

i. Resolutions of the National Monetary Council will be called CMN Resolutions;
ii. BCB Resolutions will be acts of the Collegial Board, similar to the former circular letters, that will have sequential numbering starting at 1;
ii. BCB Normative Rulings will be the acts that complement or detail another act, such as former circular letters, that will also have sequential numbering starting at 1;
iv. BCB Ordinances are acts equivalent to current ordinances and service orders, and their sequential numbering will be continued;
v. Joint Resolutions, Joint Ordinances and Joint Normative Rulings are equivalent to joint normative acts and joint decisions, and they will also have sequential numbering starting at 1, except when it is possible to continue the existing numbering.

In addition, a new normative act for personnel ordinances will be established, without an abstract and with distinct sequential numbering, which will be initiated each year.

Additionally, in compliance with other provisions of the Decree, the Central Bank, in the process of reviewing and consolidating normative acts within its competence and the competence of the National Monetary Council, has already released the list of all current normative acts inferior to the Decree. Acts issued until July 29, 2020 will continue with the same name until their revision and consolidation, which should occur up to November 30, 2021.

Demarest’s Banking and Finance team is closely monitoring these and other measures and is ready to assist you in any matters regarding this topic. For more information, please feel free to contact us.