Financial Notes (LF) is a long-term fixed-income security issued by Bank of China (Brasil) Banco Múltiplo S/A with a maturity of more than two (2) years and no subordination clause. This investment is intended for clients looking to diversify their investments with longer terms.
The remuneration may be referenced to pre-fixed or post-fixed rates, linked to the variation in the CDI, Selic or indexed to price indices.
Investment in Financial Bills is not guaranteed by the Credit Guarantee Fund.
Issuer: Bank of China (Brasil) Banco Múltiplo S/A
Target Audience: Individuals or Legal Entities.
Investment Term and Liquidity: The minimum term for issue, in accordance with current regulations is 24 months, with partial or total redemption of the investment before the negotiated maturity being prohibited.
Applicable Taxation: IRPF (Income Tax at Source): In accordance with Art. 46 of the Normative Instruction of the Federal Revenue of Brazil No. 1,585/2015, IRPF (Income Tax at Source) is levied according to the regressive table at the time of maturity of the security and is levied on the gross profitability of the investment. Link to I.N Nº 1.585/2015:
http://www.planalto.gov.br/ccivil_03/_Ato2007-2010/2007/Decreto/D6306.htm#anexo
Income | Tax Rate |
Up to 180 days | 22,50% |
From 181 up to 360 days | 20,00% |
From 361 up to 720 days | 17,50% |
Above 721 days | 15,00% |
IOF (Tax on Financial Operations): Zero rate.
Income credited to the account is already net of tax.
Product Risk Rating: The classification of the product Letra Financeira (LF) issued by Bank of China (Brasil) Banco Múltiplo S/A is classified as Conservative for terms of up to 3 years and Moderate for terms of over 3 years or if indexed to price indices.
Main Risk Factors:
- Liquidity Risk: This is likely to occur in Financial Letter issues due to the fact that the return is only attributed when the security matures. If the investor needs the amount invested in advance, they will not be able to redeem it.
- Market Risk: Risk associated with losses that may occur due to variations in market price indices (e.g. interest rates, price indices, exchange rates). Changes in the macroeconomic scenario make it possible for market risk to occur in financial investments such as: Pre-Fixed Financial Bills and Financial Bills linked to price indices.
- Credit Risk: This is defined as the possibility of losses associated with the issuer's failure to fulfill its financial obligations in accordance with the issue/agreement between the parties. Investors should assess the quality of the risk presented by the financial institution before making their investments. Please note that financial bill operations are not covered by the Credit Guarantee Fund.
This institution adheres to the ANBIMA Code of Regulation and Best Practices for the Distribution of Investment Products.
Click Here to access the document “Rules and Procedures for Transparency in Distributors' Remuneration”.