Central & South America

New rules for the application of resources from own Social Security Regimes (RPPS)

On October 19, 2017, the National Monetary Council (CMN) published Resolution 4,604 amending the standard (Resolution 3,922 / 2010), which provides for the application of the resources of the Social Security Own Regimes (RPPS) established by the Union, Federal District and Municipalities.

The changes brought by the CMN came to adapt the management of assets of the RPPS to the best investment practices, increasing to the austerity, transparency and security in the applications of the resources.

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Minimum Requirements for the Use of the Simplified Prudential Rule

On October 19, 2017, the CMN issued Resolution 4606, which sets forth the minimum requirements for the use of simplified reference equity and the additional requirements for the simplified structure of continuous risk management.

The choice of the simplified methodology of the minimum requirement of reference equity is provided to the following institutions: (i) singular credit cooperatives; (ii) non-banking institutions engaged in granting credit, except for development agencies; and (iii) non-banking institutions operating in the gold, foreign currency, or fiduciary agent markets.

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Labor Court ruling prohibits professional from devulging industrial secrets of his former employer

The 2nd Labor Court of Barueri granted early protection to a company that accused one of its former employees of revealing and disclosing information and documents of a confidential nature that would have been subtracted from the company’s premises.

According to the case, the aforementioned former employee, upon leaving the company, filed Labor Complaint against the former employer requesting the receipt of amounts for having contributed intellectually to certain of the company’s innovation projects. However, such a request was denied by the Labor Court, which understood that he had, among his work assignments, the function of collaborating with innovation projects and that, in any case, there would be no proof that he would be the creator and holder of the rights intellectual property rights over the indicated projects.

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CARF: Health plans offered to employees need not be identical to enjoy social security exemption

CARF recently decided that it is not possible to tax amounts paid by the company as medical assistance offered to its employees, even if the coverage is not identical for all employees and managers. This understanding is in line with the legal requirement of Law No. 8,212 / 91, which was recently approved by the labor reform. The decision draws attention, as it may represent a new change in the positioning of CARF.

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CARF cancels assessment involving tax planning with reduction of capital and return of shares abroad

A civil construction company was assessed for having carried out a share sale transaction preceded by a capital reduction, with consequent repayment of the shares that would be sold to companies based in Uruguay, which ultimately figured as sellers of the equity interest . As a result of the design of the operation, the capital gain was taxed at a rate of 15% (non-resident gain), instead of 34%, as preferred by inspection.

The tax planning was understood by the fiscalization as simulation of operation of alienation of shares to the foreign company. As a result, a tax assessment notice was issued that required the positive difference of IRPJ and CSLL due on the alleged disposal operation carried out by the Brazilian holding company.

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Quijano & Associates in Relay for Life 2017

Quijano & Associates participated, on our second consecutive year of Relay for Life 2017; supporting children with leukemia and cancer of the Republic of Panama.

This year is, undoubtedly, just the second one of many years to come supporting the Foundation of Friends of Children with Leukemia and Cancer (FANLYC).

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KLA is finalist in the “Boutique or Regional Investigations Practice of the Year” Award of GIR 2017

The KLA is among the five finalists of the 2017 Global Investigations Review “Boutique or regional investigations practice of the year” award.

The award recognizes the researchers and anti-corruption and compliance practices that have impressed the most in the past year.

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Proposed resolution on cybersecurity

On September 19, 2017, the Central Bank of Brazil published Public Notice No. 57/2017, announcing a resolution on the implementation by financial institutions of cybersecurity policy and the requirements for contracting services data processing and storage, and cloud computing.

The proposal provides for the minimum content of the cyber security policy and establishes requirements for contracting data processing and storage services and cloud computing, including minimum contractual requirements. In addition, requirements regarding the handling of incidents related to the cyber environment are established. Institutions should also develop actions to share information about these incidents.

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Amendment of the standard dealing with the prohibition on loans and advances

The National Monetary Council Resolution 4,599 was published on September 13, amending the recently published Resolution 4,596, dated August 28, 2017, which deals with loans or advances to financial institutions and other institutions authorized to operate by the Bank Central Brazil.

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Arturo Costabal, socio en la firma Aninat Schwencke & Cia., habla con TTR acerca del mercado transaccional chileno

TTR: Sr. Costa bal, como experto en el área de M&A, ¿cuál sería su diagnóstico sobre la marcha del mercado chileno en lo que llevamos de 2017? Costabal: En nuestra experiencia, el año 2017, ha sido un año complejo, puesto que es un año en que ha entrado en vigencia casi íntegramente la reforma tributaria del año 2014 modificada el año 2016, ha comenzado a operar la nueva norma sobre control preventivo de operaciones de concentración, y además es año electoral. Hemos visto que a partir del segundo semestre ha existido un mayor dinamismo en cuanto a operaciones de M&A, lo que puede estar motivado en parte por la expectativa de cambios políticos e institucionales que fomente más enérgicamente las inversiones.

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