The Federal Government, through Decree No. 9544, dated October 29, 2018, authorized foreign participation in up to one hundred percent (100%) of the capital stock of Direct Credit Companies (DCS) and Inter-Personal Lending Companies (SEP), known as credit fintechs.
SEPs and SCDs were regulated by the Central Bank this year, through Resolution 4,656, dated April 26, 2018. In view of this general authorization, it will no longer be necessary for the foreign investor to require specific presidential authorization to participate in SCD's and SEP's authorized to operate.
According to the Central Bank, the Decree makes the authorization process "faster, in a manner compatible with the nature of foreign investments in fintechs, producing benefits to the country. The realization of foreign investments in fintechs is essential to foster continued advances in technological innovations and to allow such institutions to expand the range of differentiated and innovative financial products".
The full text of the Decree can be accessed here. We are at your disposal for any clarifications that may be necessary and to assist you in foreign investment operations.
