Brazil: Recent Measures Adopted By The Brazilian Government Which Affect The Financial And Capital Markets

The purpose of this article is to present an overview of the recent measures adopted by the Brazilian Government which deal with the financial and capital markets and deserve to be highlighted to those individuals and legal entities interested in investing in Brazil.

I. Brazilian Finance Programs For The 2014 World Cup

The Brazilian Development Bank (Banco Nacional de Desenvolvimento Econômico e Social – BNDES) has designed two specific programs to foster environmentally and economically sustainable investments in order to prepare Brazil for the 2014 World Cup, namely: (i) the Arena Program (ProCopa Arenas), whereby BNDES will finance the construction and reform of sports arenas (stadiums) that will host Cup matches1; and (ii) the Tourism Program (ProCopa Turismo), which is intended to prepare Brazilian hotels for increased demands caused by the Cup, improving the capacity and the quality of accommodation offered to Brazilian and foreign tourists expected to attend the games and inducing the hotels´ environmental commitment by giving better conditions to those projects which take into account concerns for energy efficiency and environmental sustainability. The main features of both programs are outlined below.

The ProCopa Arenas has a R$ 4.8 billion budget for construction and reform of the venues expected to stage the World Cup games and for investments related to the urbanization of its surroundings. This program will finance up to 75% of the total cost of projects to reform or construct competition venues, limited to R$ 400 million (whichever is the lowest) per project. The projects should cover improvements in the surroundings, promoting accessibility and integration with urban spaces. For direct operations, the cost will be the Long-Term Interest Rate (Taxa de Juros de Longo Prazo – TJLP), which currently is 6% per annum, plus the BNDES spread of 0.9% per annum and a risk spread. On indirect financing, a financial intermediation rate of 0.5% is also levied. The repayment deadline will be up to 15 years, including up to a 3-year grace period.

In order to submit requests for the BNDES' analysis, bidders are required to: (a) seek the approval of Fédération Internationale de Football Association (FIFA) for the basic design; (ii) submit a detailed budget of expected investments; and (iii) submit an economic and financial feasibility study of the stadium, covering, mainly, its long-term financial sustainability. The projects should also be approved by an environmental quality certification entity that is internationally recognized and/or accredited by the Brazilian System of Metrology, Standards and Industrial Quality (Sistema Nacional de Metrologia, Normatização e Qualidade Industrial – SINMETRO). The contracting period for these operations is open until December 31, 2011.

The ProCopa Turismo will assign up to R$ 1 billion to the construction, reform, expansion and modernization of hotels. For the first time, maximum repayment deadlines for this sector may reach 12 years to modernize existing units and up to 18 years to build new units. Energy efficiency and/or sustainable construction projects certified by entities accredited by the Brazilian Institute of Metrology, Standards and Industrial Quality (Instituto Nacional de Metrologia, Normatização e Qualidade Industrial – INMETRO) may have the terms of their loans extended. If energy efficiency certification is presented, the reform, modernization and expansion projects may have their terms of loan extended to 10 years. For the construction of new units, this term of loan may reach 15 years.

In order to obtain the maximum term of loan expansion (12 and 18 years, respectively), bidders should submit sustainable construction certification which, besides energy efficiency, incorporates other requirements, such as rationalization of water and waste management. In direct operations, the applicable interest rate varies from 6.9% (micro, small and medium-sized companies) and up to 8.8% (large-sized companies), plus a risk spread. In order to apply for the funds, bidders should submit their applications by December 31, 2012.

The ProCopa Turismo will also allow direct operations from R$ 3 million. Operations of up to R$ 10 million are usually performed through accredited financing institutions. For large companies, the BNDES' maximum participation will be limited to 80% of the total investments. For micro, small and medium-sized companies, however, such percentage may reach 100%.

II. Foreign Exchange Non-Deliverable Forward Contracts In Brazil

As of January 18, 2010, the Brazilian Securities, Commodities and Futures Exchange (BM&FBOVESPA S.A. – Bolsa de Valores, Mercadorias e Futuros - BM&FBOVESPA) has authorized the registration of U.S. Dollar, Euro, Japanese Yen, and cross-rate non-deliverable forward contracts in its Over-The-Counter (OTC) market.

Initially, only foreign exchange transactions established by the Central Bank of Brazil (Banco Central do Brasil – Bacen) can be registered. As of March 1, 2010, BM&FBOVESPA will also authorize the registration of transactions with exchange rates calculated by the following information sources: U.S. Dollar/Euro parity exchange rate calculated and published by the European Central Bank; U.S Dollar/Euro exchange rate fixed by WMR/Reuters; Japanese Yen/U.S. Dollar parity exchange rate calculated and published by the Central Bank of Japan; and Japanese Yen/U.S. Dollar exchange rate fixed by WMR/Reuters.

The contract's expiration date, quotation, as well as size are to be freely agreed upon by the parties, subject to the limits established by BM&FBOVESPA. The contract will be traded in foreign currency, when the underlying exchange rate selected by the parties is the exchange rate of the Brazilian currency (Real - BRL) per foreign currency2. It will be traded in U.S. Dollars, when the underlying exchange rate selected by the parties is the exchange rate of foreign currency per U.S. Dollar, or the exchange rate of U.S. Dollars per foreign currency (Euro or Japanese Yen).

The contracts can be registered with or without the guarantee fee3. In the first case, collateral shall be required from all customers holding open positions and its amount will be updated daily, in accordance with the margin calculation criteria for the Forward Exchange Rate Contracts. For contracts registered without the guarantee feature, BM&FBOVESPA's responsibility shall be limited to contract registration, position monitoring, and cash settlement reporting.

Pursuant to the form of Forward Exchange Rate Contract of BM&FBOVESPA, should the calculation institution not disclose the applicable exchange rate (PTAX rate) corresponding to the first day preceding the expiration date, BM&FBOVESPA may at its own discretion: (a) postpone the contract settlement up until an official disclosure by the calculation institution; or (b) cash settle the contract at an arbitrated value. In either case, the settlement value may also be indexed by an opportunity cost arbitrated by BM&FBOVESPA from the expiration date to the effective cash settlement date. Furthermore, should the institution that calculates and/or discloses the exchange rate to be used in the calculation of the settlement value suspend its disclosure, thereby preventing the calculation of that rate, or in the case of force majeure situations that hinder the free functioning of the market, BM&FBOVESPA shall delist the contract and cash settle open positions in the contract at a value arbitrated at its own discretion. In these situations, BM&FBOVESPA shall provide the parties with a time frame to allow them to voluntarily and mutually settle the contract.

The parties may agree to an early settlement of their contract, that is, before the expiration date, from the first business day subsequent to the trade date, or the minimum term determined by BM&FBOVESPA, to the first business day preceding the expiration date. To this end they must report: (i) the contract number and (ii) the percentage of the contract to be early settled, expressed as a percentage of the contract's total amount of currencies, subject to the contract balance. Should the parties not define this percentage, the early settlement shall be carried out on the total contract balance. With respect to the settlement value, the proceeds from the early settlement, which are subject to the limits established by BM&FBOVESPA, shall be cash settled on the subsequent business day. When the trade is registered without the guarantee feature, cash settlement shall be made directly between the parties on the subsequent business day, or on the early settlement date, if this has been mutually agreed upon between the parties.

III. The Convergence With The International Financial Reporting Standards In Brazil

On January 28, 2010, BM&BOVESPA announced that the International Accounting Standards Board (IASB)4, the Brazilian Federal Council of Accounting (Conselho Federal de Contabilidade - CFC)5 and the Brazilian Accounting Pronouncements Committee (Comitê de Pronunciamentos Contábeis - CPC)6 signed a Memorandum of Understanding, which represents an important step towards the inclusion of Brazil in the international forum on the establishment and adoption of a set of accounting standards known as International Financial Reporting Standards (IFRS). Since only few countries have signed such a memorandum with the IASB, the creation of this partnership evidences Brazil's commitment and leadership on global regulatory issues.

The objective of the Memorandum of Understanding is to promote the convergence with IFRS in Brazil and to encourage Brazilian companies to play a greater role in standard-setting discussions. The Memorandum suggests, for example, that Brazil will uphold its commitment to accelerate the pace of convergence with IFRS all over the country, including small and medium-sized companies. For listed companies, complying with international financial reporting standards helps to improve the quality of financial reporting, thus allowing investors to enhance their decision-making and companies to reduce their cost of capital.

The signing of the Memorandum of Understanding took place in the same year as the deadline set by Brazilian regulators for all companies and financial institutions to follow IFRS. In March 2006 Bacen decided that financial intermediaries under its supervision must regularly publish consolidated financial statements in full compliance with IFRSs as from December 2010. The Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários - CVM) and the Brazilian Insurance Supervisor (Superintendência de Seguros Privados - SUSEP) issued similar rulings in 2007 aimed at companies that they regulate and supervise. At the end of 2007 the Brazilian Congress passed Law No. 11.638, of December 28, 2007, amending the Brazilian Corporation Law (Law No. 6.404, of December 15, 1976), requiring all listed companies, as well as all for-profit "large enterprises" (sociedades de grande porte), organised under any of the forms permitted by Brazilian law, to comply with IFRS.

IV. Brazil Agrees To Buy Up To US$ 10 Billion Of Notes Issued By The IMF

On January 22, 2010, the Brazilian Minister of Finance, Guido Mantega, the President of Bacen, Henrique Meirelles, and the Director-General of the International Monetary Fund (IMF), Dominique Strauss-Kahn, signed an agreement (Acordo de Compra de Notas – ACN) whereby Brazil will contribute to increase IMF´s capacity of granting loans of up to US$ 10 billion.

According to the ACN, within a two year period, Brazil is entitled to purchase certain notes (the "Notes") to be issued by the IMF. The purchase of the Notes will be made by Bacen and will involve the acquisition of assets issued by the IMF, which will be immediately converted into liquid currencies if necessary. The Notes will be expressed in Special Withdrawal Rights (Direitos Especiais de Saque – DES). The operation will change and diversify the profile of the country´s foreign reserves.

The maturity of the Notes will occur three months after their issuance and this initial term may be automatically renewed for additional periods of three months, unless the ACN is denounced by the IMF before any such renewal. The maximum term of the agreement is five years. The Notes will yield quarterly interests based on the short-term average interest rate of the United States, the Euro Zone, Japan and United Kingdom.

V. Derivatives

On January 28, 2010, the Brazilian Monetary Council (Conselho Monetário Nacional – CMN) issued CMN Resolution No. 3.833. By means of this resolution, as from March 15, 2010 any hedge transactions made by Brazilian companies in the international market with financial institutions abroad or at foreign exchanges must be compulsorily registered in Brazil in a system administered by entities of registry and financial settlement of assets authorized by Bacen or by CVM7. This registration must be effected through a financial institution or any other entity duly authorized to operate in Brazil by Bacen and must comprise the underlying assets, the involved amounts and currencies, terms, counterparties, form of settlement and adopted parameters, such as limits, multipliers and events of accelerated maturity. The proof of registry and the available documents regarding the transaction must be kept by such financial institution or entity at the disposal of Bacen for a period of five years. This is another important prudential measure adopted by the Brazilian authorities to monitor and control the risks of all derivatives transactions entered into by Brazilian companies.

VI. Development Agencies And Development Banks

CMN Resolution No. 3.834, of January 28, 2010, authorizes: (i) development agencies (agências de fomento)8 to acquire units of investment funds whose portfolios are formed exclusively by public federal instruments (provided that this requirement has been expressly contemplated in the funds´ regulations); and (ii) development agencies and development banks (bancos de desenvolvimento)9 to pay in units of investment funds with the participation of the Union (the Federation), incorporated with the specific purpose of guaranteeing credit risk transactions having as beneficiaries micro, small and medium size companies10 and rural producers (farmers) and their cooperatives11.

VII. Electric Power Sector

Last but not least, CMN Resolution No. 3.835, also issued on January 28, 2010, clarified that the restriction which currently prohibits12 the Brazilian financial institutions and other entities duly authorized to operate by Bacen to effect any transaction whatsoever aiming to transfer at any title the direct or indirect liability for the payment of any debt to bodies or entities of the public sector, does not apply to the Brazilian electric power sector. Therefore, as a result of CMN Resolution 3.835, Brazilian government-controlled entities in the electric power sector at the federal, state, municipal and district level (i.e. electric power companies controlled by the Union, the States, the Municipalities or Federal District) can grant guarantees to those special purpose companies (sociedade de propósito específico – SPE) incorporated by any such entities. The following conditions must be duly complied with: (i) for each project there is a separate SPE and the SPE is created exclusively for making investments linked to the Electric Power Generation and Transmission Program (Programa de Geração e Transmissão de Energia Elétrica), under the Growth Acceleration Program (Programa de Aceleração do Crescimento - PAC); and (ii) each guarantee cannot exceed the percentage of the equity participation of the guarantor in the SPE.

The authorized aggregate amount for the granting of all these guarantees is limited to R$ 11 billion13. It is expected that these guarantees will be available for 40 projects that totalize R$ 53 billion investments which have the participation of companies of the Eletrobrás Group, such as the hydroelectric plants of Jirau and Santo Antonio, on the Madeira River, in the State of Rondonia, and of Belo Monte, on the Xingu River, in the State of Pará14.

Footnotes

1. BNDES´ goal is for the World Cup to leave forthcoming events with the facilities produced according to the best practices of energy conservation and use of natural resources which, after the Cup, will become part of the cities and appropriated by the entire population.

2. The exchange rate of Brazilian currency (BRL) per U.S. Dollar for cash delivery, traded in the foreign exchange market, pursuant to the provisions of Resolution No. 3568/2008 of the National Monetary Council (Conselho Monetário Nacional - CMN), calculated and published by Bacen through SISBACEN, transaction PTAX800, option "5," closing offered quotation, for settlement in two days, utilizing the maximum of six decimal places, also published by Bacen with the denomination "closing PTAX," pursuant to Communication 10742, of February 17, 2003.

3. For the contracts registered with the guarantee feature, collateral shall be required from all customers holding open positions and its amount shall be updated daily, in accordance with the margin calculation criteria for the Non-Deliverable Foreign Exchange Forward Contract. For the contracts registered without the guarantee feature, BM&FBOVESPA's responsibility shall be limited to contract registration, position monitoring, and cash settlement value reporting. Therefore, BM&FBOVESPA is not liable for the settlement of such transactions, which, in turn, are not covered by the funds or other safeguard mechanisms.

4. The IASB was established in 2001. It is the standard-setting body of the International Accounting Standards Committee (IASC) Foundation, an independent private sector, not-for-profit organisation. The IASB is committed to developing a single set of global accounting standards that provide transparent and comparable information in general purpose financial statements. In pursuit of this objective, the IASB conducts extensive public consultations and seeks the co-operation of international and national bodies around the world.

5. The CFC was created in 1946 and is a quasi-governmental entity subject to the discipline of state bodies. Its objective is to promote the development of the accounting profession, emphasising its ethical aspects, service quality, and engaging in the registration and supervision of its members and accounting entities; its actions being ultimately directed towards the protection of society.

6. The CPC was created in 2005 and issues technical pronouncements, guidance, and interpretations, which must be endorsed by the applicable governmental entities and by the CFC in order to have legal effects. The CPC seeks the convergence of Brazilian accounting standards towards international standards. It was founded by the following entities: the Brazilian Association of Listed Companies (Associação Brasileira das Companhias Abertas - ABRASCA); the National Board of the Brazilian Association of Capital Market Analysts and Investment Professionals (Associação dos Analistas e Profissionais de Investimento do Mercado de Capitais - APIMEC Nacional); BM&FBOVESPA; the CFC; the Foundation Institute for Research in Accounting, Finance and Actuarial Sciences (Fundação Instituto de Pesquisas Contábeis, Atuariais e Financeiras - FIPECAFI); and the Institute of Independent Auditors of Brazil (Instituto dos Auditores Independentes do Brasil - IBRACON). The CPC is independent of its founding entities and its deliberations require a minimum of 2/3 of votes in favour of any proposal.

7. The most important entity authorized to effect this registration is CETIP – OTC Clearing House (CETIP S.A.- Balcão Organizado de Ativos e Derivativos), which operates the leading marketplace for private fixed income securities and over-the counter (OTC) derivatives in Latin America.

8. The incorporation and operation of development agencies is governed by CMN Resolution No. 2.828, of March 30, 2001, as amended. A development agency must be: (i) formed as a closely-held corporation (sociedade anônima de capital fechado), and (ii) under the share control of a Unit of the Federation (the States or the Federal District) where its headquarters are located. Furthermore, its corporate purpose is to finance fixed and working capital associated with projects in such Unit of the Federation.

9. The incorporation and operation of development banks is governed by the Regulations attached to CMN Resolution of November 3, 1976, as amended. A development bank is a non-federal public financial institution formed as a corporation (sociedade anônima) headquartered in the capital of the State of the Federation and share controlled by such State.

10. The company size classification adopted by the Brazilian Development Bank (Banco Nacional de Desenvolvimento Econômico e Social – BNDES) is applicable to industry, trade and services, according to BNDES Circular Letter No. 64/02, of October 14, 2002, and is as follows: (i) Micro Companies: annual operational gross revenues of up to R$ 1,200 thousand; (ii) Small Companies: annual operational gross revenues of more than R$ 1,200 thousand and less than or equal to R$ 10,500 thousand; (iii) Medium Companies: annual operational gross revenues of more than R$ 10,500 thousand and less than or equal to R$ 60 million that: (a) have carried out export operations in the 36 months prior to the presentation of the financing request; or that are manufacturers of inputs that are directly used in the production, assembly or packaging processes of goods earmarked for export, having supplied export companies in the 36 months prior to the presentation of the financing request; and (iv) Large Companies: annual operational gross revenues of more than R$ 60 million. Gross annual operating revenues are considered to be the revenues incurred during the calendar year with the sale of goods and services in one's own operations, the price of offered services and the result of others' operations, not including cancelled sales and unconditional granted discounts.

11. The creation of these investment funds is regulated by Law No. 12.087, of November 11, 2009, which authorizes the participation of the Union in funds to guarantee credit risk transactions for micro, small and medium size companies and for rural producers and their cooperatives.

12. Such prohibition is contained in item IV of article 7 of CMN Resolution No. 2.827, of March 30, 2001. Article 1 of CMN Resolution 3.835 included § 4 to article 7 to clarify this issue. This decision ratifies a federal decree enacted at the end of last year – Decree No. 7.058, of December 29, 2009, which regulated the matter but required a resolution from the CMN to become in full force and effect.

13. This limited is expressly contemplated in article 2, which added § 4 to article 7 of CMN Resolution 2.827.

14. In terms of energy production, Jirau will generate 3,300 megawatts (MW), Santo Antonio 3,150 MW and Belo Monte 11,000 MW.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Walter Stuber
Adriana Maria Gödel Stuber
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

Disclaimer

Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

Registration

Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

Cookies

A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

Links

This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

Mail-A-Friend

If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

Security

This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.