A world-renowned company in the leisure vehicle space, its global reach includes manufacturing plants across the United States, Brazil and Asia. This industry leader also offers retail financing, insurance and insurance-related programs to its customer base.
The company’s primary objective was to establish a best-in-class cash management and liquidity structure in Brazil which would optimize its use of its working capital. The company also needed to streamline daily cash management in order to add liquidity efficiency on the subsidiary level.
A global multi-entity structure was implemented to incorporate Brazilian balances to the Global ECR (earnings credit rate) program.
As a result of the plan, balances in Brazilian reais (BRL) are accounted under the program contributing for the global offset, taking advantage of earnings credits generated locally to offset fees within the billing group globally.
Local interest-bearing accounts are not permitted by the Central Bank of Brazil. Therefore, banks typically provide investment options to move funds from Demand Deposit Accounts (DDA) to Time Deposits. However, returns are impacted in the short term as a result of the IOF federal tax, which is applied in Brazil to gross interest along a regressive scale during the first 29 days, going from 96% impact on the first day and decreasing gradually to 0% on day 30.
The Global ECR program not only suits the client’s needs but also spots its demands from both operational and return perspectives. J.P. Morgan is exceeding the client’s expectations by delivering both an efficient investment alternative as well as a safe and sound cash management offering in Brazil, which serves both the local and global teams. Overall, Global ECR was clearly the unique and differentiated structure that led to the company awarding J.P. Morgan with its business in Brazil.
J.P. Morgan is the marketing name for the Treasury Services business of JPMorgan Chase Bank, N.A. and its affiliates worldwide.
JPMorgan Chase Bank, N.A. Member FDIC.
The products and services described in this document are offered by JPMorgan Chase Bank, N.A. or its affiliates subject to applicable laws and regulations and service terms. Not all products and services are available in all locations. Eligibility for particular products and services will be determined by JPMorgan Chase Bank, N.A. or its affiliates.
JPMorgan Chase Bank, N.A. at its London Branch is authorised by the Office of the Comptroller of the Currency in the jurisdiction of the U.S.A. Authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and to limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request (Firm Reference Number: 124491)
JPMorgan Chase Bank, N.A. (Johannesburg Branch) is an Authorized Financial Services Provider (FSP No. 7795). An external company registered in South Africa with the registration number 2001/016069/10.
Registered in South Africa as a branch of a foreign bank, JPMorgan Chase Bank, N.A. and operates under a banking license and is regulated by the South African Reserve Bank.
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Details of FAIS Ombud
Office of the FAIS Ombudsman
Name: The Ombud for Financial Services Providers
Postal Address: PO Box 74571, Lynnwood Ridge, 0400
Telephone number: 012 762 5000 / 012 470 9080
Facsimile number: 012 348 3447
Email Address: firstname.lastname@example.org
For Brazil: Ombudsman J.P. Morgan: 0800-7700847 / email@example.com