INSURANCE AND OPEN SUPPLEMENTARY SOCIAL SECURITY
1) Private Insurance Superintendence - SUSEP CIRCULAR No. 589, OF 7/5/2019
SUSEP Circular no. 589, of 7/5/2019, was published in the Federal Official Journal (DOU) on 7/8/2019. This Circular amends SUSEP Circular no. 529, of 2016, which established the procedures related to the production of evidence in proceedings for organization; operation authorization; changes in the controlling interest; corporate restructuring, acquisition or expansion of direct or indirect interest; installation of, change to, closing of offices or representations; cancellation of operation authorizations; capital increase or decrease; and amendments to articles of incorporation, of any type, of insurers, capitalization companies, local reinsurers, and open supplementary social security entities (EAPC).
In brief, this new Circular establishes that the publicly traded companies of the insurance sector will be treated as companies with stock widely held, therefore as a "corporation." The purpose is to recognize the existence of more complex corporate structures by changing some of the requirements set in the previous Circular to make them more comprehensive and give flexibility to the rule.
On the one side, this change may be deemed positive because legal entities with more complex structures many times encounter difficulties to prove that all requirements set in SUSEP...