New business continuity regulations for Brazilian financial institutions
- Published: Friday, 08 July 2016 07:57
Brazil’s Conselho Monetário Nacional (National Monetary Council: CMN) has published new business continuity regulations, establishing the minimum requirements to be observed in the preparation and implementation of business continuity plans for systemically important financial institutions.
The new regulations (Resolução Nº 4.502) are part of efforts to adapt to the supervisory and monitoring standards established by the Comitê de Estabilidade Financeira (Financial Stability Board) and aim to make financial institutions better prepared for disruptive incidents.
By the end of 2017, systemically important financial institutions are required to develop business continuity plans protecting their core activities: i.e. those functions which, if disrupted, could threaten financial stability and the viability of the institution. The BC plan must contain a detailed description of the strategies to be adopted during the recovery process and the governance mechanisms associated with recovery plan implementation.