• The country’s Central Bank said that companies should choose between maintaining registration accounts, a model currently in force, and using payment accounts;
• According to the monetary authority, the measure should encourage competition between payment service providers and expand the scope of operations of brokerage firms.

Brazil’s National Monetary Council (CMN) has endorsed that securities brokers and distributors start providing payment services to their clients as of January 2021, according to a decision published by the Central Bank on Friday.

The country’s Central Bank said that companies should choose between maintaining registration accounts, a model currently in force, and using payment accounts.

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“Regardless of the modality chosen, the funds kept in the accounts, while not committed to the settlement of transactions on behalf of clients, must be invested in federal public securities or kept as cash by the intermediation companies,” said the BC.

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According to the monetary authority, the measure should encourage competition between payment service providers, in addition to expanding the scope of operations of brokerage firms and distributors of securities and improving the management of resources in the intermediation segment.

Translated by LABS