UPDATE 1-Brazilian prosecutors ask BNY Mellon unit to return $2.5 bln to local fund

local fund@ (Adds details of prosecutors' request)

SAO PAULO, Jan 18 (Reuters) - Brazilian prosecutors asked on Thursday that the local unit of Bank of New York Mellon Corp return 8.2 billion reais ($2.56 billion) to local pension fund Postalis, according to a statement.

Prosecutors said the Brazilian unit of BNY Mellon, which managed part of the assets held by the pension fund Postalis, caused losses to the fund.

According to prosecutors, BNY has failed to monitor the risks Postalis was subject to as a result of investments and did not comply with local rules for asset allocation.

BNY Mellon did not immediately respond to requests for comment. A Sao Paulo court now will decide if the bank will face charges.

($1 = 3.2090 reais) (Reporting by Iuri Dantas and Carolina Mandl; Editing by Phil Berlowitz and Bill Trott)