The new instruction published by the banking supervisor asks banks, brokerages and other finance companies for more data on non-resident institutional investors who hold shares, debt and units, with new rules coming into force on February 1, 2023.

“This instruction aims to introduce the following changes: the reporting of additional details for securities that do not have an ISIN code (International Securities Identification Number) and for non-resident investors, with preference for the Legal Entity Identifier (LEI) report whenever this exists, with a view to the univocal identification of securities and investors”, states the BdP.

Until now, as explained by Jornal de Negócios, the reporting models only required data to indicate the typology and region. But starting next year, and with the new data requested, the supervisor will be able to know exactly who the foreign institutional investor is.

In the published instruction, the BdP recalls that the reporting “of granular information relating to securities portfolio transactions and positions, on an investor-by-investor and security-by-security basis, is regulated by Instruction nº 31/2005 of 15 November, which revoked Instruction Nº 15/99, of June 15”. Information that has allowed the supervisor “to obtain the information necessary for the compilation of statistics, namely securities portfolios, and has essentially allowed the obligation to be satisfied”.

However, and “after several years, it seems appropriate to carry out a review of this instruction with the aim of incorporating improvements that meet the needs identified in the meantime in the statistical compilation process, as well as raised by the users of the information collected and produced”, says the BdP.