CVM INSTRUCTION NO. 411, OF NOVEMBER 26, 2004.

Amends CVM Instruction No. 409, of August 18, 2004.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Board, in a meeting held on this date, in view of the provisions of Arts. 2 and 19 of Law No. 6,385, of December 7, 1976, resolved to issue the following Instruction:

Art. 1

Arts. 10, 12, 14, 16, 17, 28, 40, 41, 43, 50, 52, 54, 55, 56, 57, 61, 64, 85, 88, 91, 92, 93, 94, 95, 96, 99, 101, 109, 110, 112, 113, 114, 115, 124 and 125 of CVM Instruction No. 409, of August 18, 2004, shall enter into force with the following wording:

“Art. 10. ............................................................................................................. ............................................................................................................................

§3 When dealing with the investment funds referred to in Arts. 93, 94 and 95, the unit value of the day may be calculated from the net asset value of the previous day, duly updated for one day.

§4 For the purposes of the provision in § 3, any adjustments resulting from movements occurring during the day shall be recorded against the applications or redemptions of the unitholders who made these movements or, alternatively, against the fund's assets, as provided in the regulations.” (NR)

“Art. 12. The unit of an open-end fund cannot be the subject of assignment or transfer, except by judicial decision, execution of guarantee, or universal succession. ...................................................................................................................” (NR)

“Art. 14. In the issuance of fund units, the unit value of the day or the day following the effective availability, by the administrator or intermediary, of the invested resources, as provided in the regulations, must be used. ...................................................................................................................” (NR)

“Art. 16. ............................................................................................................. .............................................................................................................................

§3 The assembly referred to in the main text must be held even if the administrator decides to reopen the fund before the date scheduled for its holding.

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§4 The administrator may request specific authorization from the CVM to proceed with the spin-off of the fund before reopening for redemptions; in this case, new applications in the fund resulting from the spin-off are prohibited, and the assembly referred to in the main text must, in any case, be held.” (NR)

“Art. 17. ............................................................................................................. ............................................................................................................................

§3 The fund must remain closed for applications while the suspension of redemptions period lasts.” (NR)

“Art. 28. .............................................................................................................

§1 During the distribution period, the administrator must monthly send a statement of the portfolio applications, through the Document Submission System available on the CVM website on the worldwide computer network, within a maximum period of 10 (ten) days counted from the end of the month. ..................................................................................................................” (NR)

“Art. 40. ............................................................................................................. .............................................................................................................................

V – detailed presentation of the administrator and the manager, if applicable, with information regarding their registration with the CVM, their technical departments and other resources and services used to manage the fund; .............................................................................................................................

XV – observed the provisions of Art. 75, the indication of the location or means and the method of obtaining the fund's results in previous fiscal years, and other information regarding previous fiscal years, such as financial statements, administrator reports of the fund and other pertinent documents that have been disclosed or prepared by virtue of applicable regulatory provisions; and .............................................................................................................................

§6 The remuneration of a risk rating agency contracted by the fund may constitute an expense of the fund provided that:

I – it is included in the expenses covered by the administration fee; and

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II – this possibility is stated in the regulations approved upon its constitution, or is expressly approved by a general assembly held subsequently. ..................................................................................................................” (NR)

“Art. 41. ............................................................................................................. ............................................................................................................................

§3 The disclosure policy must be identical for all investment consultants, rating agencies and other interested parties, with the alteration of the disclosure policy being disclosed as a relevant fact.

§4 Identical treatment shall always be afforded to the set of unitholders regarding the disclosure of information, observing the provisions of this Instruction and, if applicable, those contained in the disclosure policy referring to them.

§5 If the fund contracts a risk rating agency, the information provided to it may cover that provided to unitholders.” (NR)

“Art. 43. .............................................................................................................

Sole Paragraph. Unless approved by the unanimous vote of the fund's unitholders, changes to the regulations will be effective at least 30 (thirty) days after communication to the unitholders referred to in Art. 55, in the following cases: ...................................................................................................................” (NR)

“Art. 50. In addition to the assembly provided for in the previous article, the administrator, the manager, the custodian or the unitholder or group of unitholders holding at least 5% (five percent) of the total units issued may convene a general assembly of unitholders at any time, to deliberate on an agenda of interest to the fund or the unitholders.

Sole Paragraph. The convening by initiative of the manager, the custodian or unitholders shall be directed to the administrator, who must, within a maximum period of 30 (thirty) days counted from receipt, carry out the convening of the general assembly at the expense of the requesters, unless the general assembly so convened deliberates otherwise.” (NR)

“Art. 52. ............................................................................................................. ............................................................................................................................

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§3 In the event of dismissal of the administrator of an open-end fund, the qualified quorum referred to in the main text may not exceed half plus one of the units issued.” (NR)

“Art. 54. ............................................................................................................:

I – its administrator and its manager;

II – the partners, directors and employees of the administrator or the manager;

III – companies affiliated with the administrator or the manager, their partners, directors, employees; and .............................................................................................................................

Sole Paragraph. The prohibition provided for in this article does not apply to the persons mentioned in items I to IV when it concerns a fund of which they are the sole unitholders, or in the event of express acquiescence of the majority of the other unitholders, manifested in the assembly itself, or in a power of attorney instrument that refers specifically to the assembly in which the permission to vote will take place.” (NR)

“Art. 55. The summary of the decisions of the general assembly must be sent to each unitholder within a period of up to 30 (thirty) days after the date of the assembly's holding, and the account statement sent after the communication referred to in item II of Art. 68 may be used for this purpose.

Sole Paragraph. If the general assembly is held in the last ten days of the month, the communication referred to in the main text may be effected in the account statement relating to the month following that of the assembly's holding.” (NR)

“Art. 56. .............................................................................................................

§1 In addition to the mandatory independent audit service (Art. 84), the administrator may contract, in the name of the fund, with duly qualified and authorized third parties, the following services, excluding any others not listed: .............................................................................................................................

VII – risk classification by a specialized agency constituted in the Country. ...................................................................................................................” (NR)

“Art. 57. The contracting of duly qualified or authorized third parties for the provision of administration services, as mentioned in Art. 56, is an option for the fund; the contracting of the services provided for in items III, IV, V and VI is mandatory, only when the administrator is not duly authorized or accredited for their provision. .............................................................................................................................

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§2 Contracts entered into in accordance with § 1, regarding the services provided for in items I, III, V and VII of § 1 of Art. 56, must contain a clause stipulating joint and several liability between the fund's administrator and the third parties contracted by the fund, for any damages caused to unitholders due to conduct contrary to the law, regulations and normative acts issued by the CVM. ..................................................................................................................” (NR)

“Art. 61. ............................................................................................................. ................................................................................................................…........

§4 Investment funds and investment funds in units, not intended exclusively for qualified investors, that acquire, within the limits of this Instruction, units of other investment funds, must establish in their regulations that the administration fee charged by the administrator includes the administration fee of the investment funds in which they invest.

§5 The provision in § 4 does not prevent the fund's regulations from establishing a maximum administration fee, including the administration fee of the funds in which it invests, and a minimum administration fee, which does not include the administration fee of the funds in which it invests, in which case:

I – the prospectus and any disclosure material referring to the administration fee must highlight both fees, clarifying their distinction; and

II – the prospectus and any disclosure material that makes any type of comparison between funds must refer, in the comparison, only to the maximum fee, with reference to the minimum fee and the effective fee in other periods, if any, permitted in a note.

§6 In addition to expenses with the services referred to in the main text, the administration fee may cover expenses with the service indicated in item VII of § 1 of Art. 56, observed the provisions of §§ 4 and 6 of Art. 40.” (NR)

“Art. 64. ............................................................................................................: .............................................................................................................................

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V – promise predetermined returns to unitholders; .....................................................................................................................................

VII – use fund resources to pay for insurance against financial losses of unitholders; and

VIII – practice any act of liberality. ...................................................................................................................” (NR)

“Art. 85. The fund must keep its assets applied in securities, financial assets and operational modalities available in the financial and capital markets, as established in its regulations, observing the limits provided for in this Instruction. .............................................................................................................................

§3 Fund applications in "warrants" and mercantile contracts for the purchase and sale of products, goods or services for future delivery or provision, as well as in titles or certificates representing these contracts, without prejudice to the provisions of Art. 86 and Resolution No. 2,801, of December 7, 2000, of the National Monetary Council, must have a guarantee from a financial institution or insurance company, observing, in the latter case, specific regulation of the Superintendence of Private Insurance – SUSEP. ..................................................................................................................” (NR)

“Art. 88. Except for equity funds, as defined in Art. 95, the total of securities, financial assets and operational modalities issued or with co-obligation of the same legal entity, its controller, companies directly or indirectly controlled by it and affiliated or other companies under common control, as well as of the same state, municipality, or natural person, may not exceed 10% (ten percent) of the fund's net asset value.

§1 The total issuance or co-obligation of the same financial institution, its controller, companies directly or indirectly controlled by any of them and their affiliated or companies under common control may exceed the percentage referred to in the main text, observed the maximum of 20% (twenty percent) of the fund's net asset value. ..................................................................................................................” (NR)

“Art. 91. .............................................................................................................

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I – the acquisition of units of investment funds and investment funds in units of investment funds by investment funds in units regulated in Chapter XIII, observed the provisions of § 4 of Art. 112; .............................................................................................................................

§1 The limit provided for in item III of this article does not apply to investment funds classified as "External Debt". .............................................................................................................................

§3 Investment funds classified as "Long Term", according to the definition in the sole paragraph of Art. 92, may only invest in units of investment funds also classified as "Long Term".” (NR)

“Art. 92. ............................................................................................................. ............................................................................................................................

Sole Paragraph. Funds classified as "Referenced", "Fixed Income", "Currency", "External Debt" and "Multimarket" may be additionally classified as "Long Term" when the average maturity of their portfolio exceeds 365 (three hundred and sixty-five) days and is composed of private or federal public titles, pre-fixed or indexed to the SELIC rate or another interest rate, price indices or currency variation, or, still, by committed operations backed by the federal public titles referred to in this paragraph, always observed the provisions of § 3 of Art. 91.” (NR)

“Art. 93. Funds classified as "Short Term" must apply their resources exclusively in federal public or private pre-fixed titles or indexed to the SELIC rate or another interest rate, or titles indexed to price indices, with a maximum remaining maturity of 375 (three hundred and seventy-five) days, and an average portfolio maturity of the fund less than 60 (sixty) days, with the use of derivatives permitted only for portfolio protection and the realization of committed operations backed by federal public titles.

§1 The private titles referred to in the main text must have their issuer classified in the low credit risk category or equivalent, with certification by a risk rating agency located in the Country.

§2 In the funds referred to in the main text, the following shall be observed:

I – in the issuance of units, a unit value calculated in accordance with § 3 of Art. 10 may be used, for the purpose of issuing units on the same day as the financial availability of resources, as provided in the regulations;

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II – in the conversion of units, a unit value calculated in accordance with § 3 of Art. 10 may be used, for the purpose of redemption on the same day as the request, as provided in the regulations; ..................................................................................................................” (NR)

“Art. 94. ............................................................................................................. ............................................................................................................................

§3 ....................................................................................................................:

I – in the issuance of units, a unit value calculated in accordance with § 3 of Art. 10 may be used, for the purpose of issuing units on the same day as the financial availability of resources, as provided in the regulations;

II – in the conversion of units, a unit value calculated in accordance with § 3 of Art. 10 may be used, for the purpose of redemption on the same day as the request, as provided in the regulations; .................................................................................................................” (NR)

“Art. 95. ............................................................................................................. ............................................................................................................................

§ 3 The main risk factor of a fund is understood to be the price index, the interest rate, the stock index, or the price of the asset whose variation potentially produces the greatest effects on the market value of the fund's portfolio.

§4 The main risk factors of the portfolio of a fund classified as "Fixed Income" must be the variation of domestic interest rates or price indices, or both. .............................................................................................................................

§6 The main risk factor of the portfolio of a fund classified as "Currency" must be the variation of foreign currency prices or the variation of the currency swap.

§7 In funds classified as "Fixed Income", the following shall be observed:

I - in the issuance of units, a unit value calculated in accordance with § 3 of Art. 10 may be used, for the purpose of issuing units on the same day as the financial availability of resources, as provided in the regulations, except for funds classified in the form of the sole paragraph of Art. 92;

II - in the conversion of units, a value calculated in accordance with § 3 of Art. 10 may be used, for the purpose of redemption on the same day as the request, as provided in the regulations, except for funds classified in the form of the sole paragraph of Art. 92; .................................................................................................................” (NR)

“Art. 96. .............................................................................................................

§1 Titles representing the external debt of the Union must be kept, abroad, in a custody account, in the Euroclear System or in the LuxClear - Central Securities Depository of Luxembourg (CEDEL).

§2 The titles comprising the fund's portfolio must be custodied in entities qualified to provide this service by the local competent authority. .............................................................................................................................

§7 The maintenance or application in the Country of resources raised by the fund is prohibited, except in the cases of item II of § 4 of this article.” (NR)

“Art. 99. ............................................................................................................. ............................................................................................................................

IX – expenses with custody and settlement of operations with securities, financial assets and operational modalities; ..................................................................................................................” (NR)

“Art. 101. ........................................................................................................... ............................................................................................................................

§1 In the event of incorporation, spin-off or merger involving a fund organized in the form of a closed condominium, the administrator must proceed with changes to the regulations in accordance with Art. 43 and comply with the request for redemption of units by unitholders who dissent from the decision of the general assembly, if they abstain or do not attend the assembly.

CVM INSTRUCTION NO. 411, OF NOVEMBER 26, 2004. 10

§2 The request for redemption of units provided for in § 1 must be formulated up to 10 (ten) days after the communication of the decision to the unitholders, and the payment of the redemption value must be made at most 10 (ten) days after the unitholder's request.” (NR)

“Art. 109. ........................................................................................................... ............................................................................................................................

§2 It is permitted the permanence, in funds for qualified investors, of unitholders who do not fit the...