Banco Central do Brasil will play a bigger role in supervising insurance and pension funds with the creation of a new regulatory body for the segments, Valor Econômico reported.
The central bank can help in data processing once ASPC, which will oversee the insurance and complementary pension markets, is created, a source told Valor. The central bank has also developed technology for the new agency, the report said.
Later this week, Brazil's economy ministry will submit to Congress a bill on the merger of private insurance regulator Susep and pension regulator Previc, which will form the ASPC. The bill is expected to be ratified this year, the source said.
The bill proposes separate teams supervising insurance and pension funds, but it will ultimately target a specialized internal team to cover both segments, the source said. Currently, an internal Susep team handles the insurance market while a group of auditors oversee pension funds.
The ASPC would be led by economist Solange Vieira, who served as secretary of complementary social security and president of Banco Nacional de Desenvolvimento Econômico e Social's pension fund Fapes.
Talks about the merger of the insurance and pension fund regulators have been ongoing since late 2018. Economy Minister Paulo Guedes, who reportedly scrapped the merger proposals in January, later told GloboNews that the plan is in place.
Guedes said pension fund resources were "destroyed" and remarked on the possible creation of a "strong agency."