The Brazilian Central Bank has enacted on November 28th, 2016, the Resolution No. 4,538, approved by the National Monetary Council on November 24th, 2016.
According to the Resolution No. 4,538/16, all financial institutions and other institutions authorized to operate by the Brazilian Central Bank must adopt a “Management Succession Policy” which shall set a system of rules for the assessment, appointment and training of applicants for high-ranking executive positions.
The Policy must ensure that all high-ranking executives are capable of executing their duties and, therefore, Resolution No. 4,538/16 requires such policies to take into consideration the technical and managerial proficiency of the applicants, his/hers understanding of the applicable regulation and prior experience on the field.
The institutions must comply with the Resolution within 180 days.