Employment in Financial Services
Contributing Editor
In a rapidly evolving regulatory landscape, employers in the financial services sector must ensure they are fully compliant with local employment rules and procedures. Helping to mitigate risk, IEL’s guide provides clear answers to the key issues facing employers in the sector
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02. Are there particular pre-screening measures that need to be taken when engaging a financial services employee? Does this vary depending on seniority or type of role? In particular, is there any form of regulator-specified reference that has to be provided by previous employers in the financial services industry?
02. Are there particular pre-screening measures that need to be taken when engaging a financial services employee? Does this vary depending on seniority or type of role? In particular, is there any form of regulator-specified reference that has to be provided by previous employers in the financial services industry?
Brazil
Brazil
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
The law does not require specific procedures or measures before hiring. However, depending on the activities the employee performs, specific certification may be necessary.
03. What documents should be put in place when engaging employees within the financial services industry? Are any particular contractual documents required?
03. What documents should be put in place when engaging employees within the financial services industry? Are any particular contractual documents required?
Brazil
Brazil
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
There is no legal requirement for specific documents, and the CLT does not require a contract. However, contracts are a customary business practice in several sectors, including financial services.
04. Do any categories of employee need to have special certification in order to undertake duties for financial services employers? If so, what are the requirements that apply?
04. Do any categories of employee need to have special certification in order to undertake duties for financial services employers? If so, what are the requirements that apply?
Brazil
Brazil
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
Yes, special certification is required for financial services employers to undertake their duties.
The CPA-10 (ANBIMA Series 10 Professional Certification) is designed for professionals who distribute investment products for retail in bank branches or service platforms.
The CPA-20 (ANBIMA Series 20 Professional Certification) is for professionals who distribute investment products to clients in the high-income retail, private, corporate, and institutional investor segments in bank branches or on service platforms.
The CEA (ANBIMA Certification of Investment Specialists) is a certification that qualifies financial market professionals to act as investment specialists. These specialists can recommend investment products to clients in different segments and advise account managers.
The CFG (ANBIMA Certification of Fundamentals in Management) is for certified professionals who know the sector's technical basis, which is an advantage for occupying various positions in asset-management companies.
The CGA (ANBIMA Manager Certification) qualifies professionals to work with the management of third-party resources in fixed-income investment funds, shares, foreign exchange, multimarket, managed portfolios, and index funds.
The CGE (ANBIMA Manager Certification for Structured Funds) qualifies professionals to work with third-party resource management in the structured products industry.
06. Is there a register of financial services employees that individuals will need to be listed on to undertake particular business activities? If so, what are the steps required for registration?
06. Is there a register of financial services employees that individuals will need to be listed on to undertake particular business activities? If so, what are the steps required for registration?
Brazil
Brazil
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
There are no specific financial agencies that require registration from employees. For activities that require certification, an assessment controlled by ANBIMA needs to be submitted. The Brazilian Association of Financial and Capital Market Entities (ANBIMA) has represented the market for over four decades. It is responsible for more than 300 institutions, whose objective is to strengthen the sector's representation and support the evolution of a capital market capable of financing local economic and social development.
07. Are there any specific rules relating to compensation payable to financial services employees in your jurisdiction, including, for example, limits on variable compensation, or provisions for deferral, malus and/or clawback of monies paid to employees?
07. Are there any specific rules relating to compensation payable to financial services employees in your jurisdiction, including, for example, limits on variable compensation, or provisions for deferral, malus and/or clawback of monies paid to employees?
Brazil
Brazil
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
The Collective Labour Agreement establishes several rules for employees in the sector.
There is a determination, through collective negotiation, of:
- percentage of salary increase;
- minimum wage for employees who begin their activities in the sector;
- minimum wage for employees after 90 days’ tenure;
- additional pay for length of service;
- additional overtime;
- night additional pay;
- additional pay for unhealthy or dangerous work;
- function bonus;
- cash bonus;
- gratuity for check clearing;
- meal assistance;
- food assistance;
- daycare and nanny assistance;
- funeral assistance;
- transportation vouchers; and
- assistance with night-time travel.
09. Is there a particular code of conduct and/or are there other regulations regarding standards of behaviour that financial services employees are expected to adhere to?
09. Is there a particular code of conduct and/or are there other regulations regarding standards of behaviour that financial services employees are expected to adhere to?
Brazil
Brazil
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
There is no general code defined by law or regulation.
Each company can adopt its standard of behaviour as a rule.
Certain activities require specific protocols for the Prevention of Money Laundering and Combating the Financing of Terrorism:
- the capture, intermediation, and investment of financial resources from third parties in national or foreign currency;
- the purchase and sale of foreign currency or gold as a financial asset or exchange instrument; and
- the custody, issuance, distribution, settlement, negotiation, intermediation, or securities administration.
Within the scope of the Brazilian System for Preventing and Combating Money Laundering and the Financing of Terrorism, it is up to institutions and their employees to adequately comply with Central Bank regulations. Also, institutions must promote the effectiveness of the apparatus to combat and prevent money laundering, carry out risk management with the implementation of effective policies, procedures, and controls, and help the Brazilian state locate suspicious financial operations so that they can be investigated.
12. Are there any particular rules or protocols that apply when terminating the employment of an employee in the financial services sector, including where a settlement agreement is entered into?
12. Are there any particular rules or protocols that apply when terminating the employment of an employee in the financial services sector, including where a settlement agreement is entered into?
Brazil
Brazil
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
As a legal requirement, it is necessary to issue the term of termination of the employment contract. This document specifies the amounts paid at that time (there is a difference between terminations for just cause and without cause).
For workers in the sector, general rules apply, as no specific rules are created by law or a collective instrument.
13. Are there any particular rules that apply in relation to the use of post-termination restrictive covenants for employees in the financial services sector?
13. Are there any particular rules that apply in relation to the use of post-termination restrictive covenants for employees in the financial services sector?
Brazil
Brazil
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
- at Tortoro Madureira & Ragazzi Advogados
Yes, restrictive covenants are possible for financial service employees. However, restrictions on work in other companies in the sector (non-competition) must be paid for less than 24 months. These criteria are not provided for by law, but were constructed by Brazilian courts when adjudicating on this issue.