B3's central depository is focused on working with investor, custody agents, issues and underwriters and is the sole provider in the Brazilian equities market for the deposit, update and coordination of corporate events (such as dividend payments, interest on equity capital and bonuses). A wide range of services is offered:
Dematerialization and electronic records
The central depository has been a pioneer in the dematerialization of assets (replacement of physical documents for electronic records). All records of ownership of the assets, as well as the movements, are made electronically in a process known as "book entry". This feature increases efficiency and safety, since it automates the processes, reduces costs and eliminates failures. The assets are registered in individual accounts and maintained under the responsibility of a financial institution chosen by the investor.
All assets held in the central depository have an ISIN code (international standardization for coding of financial securities, which assigns a unique code to each asset), allowing its perfect identification anywhere in the world. B3 is the accredited brazilian provider agency: the only institution authorized to assign ISINs for securities in Brazil for all asset classes.
Fiduciary asset property
The central depository has the fiduciary asset property in face of the issuers with assets listed on B3. This type of record in the books of the issuers ensures that the central depository has no right of ownership over the assets kept under its custody.
Daily reconciliation with issuers and custody agents
In order to ensure the integrity of assets under its custody, the central depository performs several daily reconciliation processes.
Structure of individual accounts in the name of the end-investors
The Central Depository maintains a structure of individual accounts on behalf of the end-investor. This procedure enables the provision of various services, but does not imply a direct relationship between the institution and the end-investor. The representative of the investor vis-à-vis the central depository is always the custody agent: account segregation is an additional protection mechanism for the investor, since it enables the perfect identification of ownership rights to an asset at any time. The central depository reports directly to end-investors about their assets’ stock held under its responsibility.