Update of the definition of “matters pending correction” and its respective rules within the scope of SUSEP

The Superintendence of Private Insurance (“SUSEP”) published Circular No. 652/2022, which updated the definition of “matters pending correction”, as well as the respective rules the entity must apply when carrying out its supervision activities. The new Circular repeals SUSEP Circular No. 427/2011 and SUSEP Circular No. 503/2014.

There were minor amendments made  to the text of previous rules (SUSEP Circular No. 427/2011 and SUSEP Circular No. 503/2014), as highlighted below:

  • Inclusion of possibility of deadline extension in order to meet the requirements set out by SUSEP, establishing a minimum deadline of 15 days counted from the date of receipt of the request, and not a maximum of 15 days as previously stipulated;
  • Failure to comply with the regulations in force on the principles to be observed as regards conduct in client relationships, was included as a “matter pending correction”, for regulatory purposes;
  • The granting of any request by SUSEP is conditioned to the absence of any “matter pending correction”, except for the items listed in the Rule. The revaluation of real estate properties is no longer a listed exception and is therefore conditioned to the absence of a matter pending correction to be granted;
  • Revision of the Rule’s wording, now referring to the absence of “matter pending correction” when the entity presents the ‘solvency regularization plan’ (plano de regularização de solvência – PRS), and removing the reference to the ‘solvency correction plan’ (plano corretivo de solvência – PCS) – repealed by Resolution CNSP No. 302/2013.

The new Circular came into force on March 01, 2022.

Demarest’s Insurance and Reinsurance team is available to provide more information on this and other related topics.