Circular Letter CVM/SIN 02/2016

CIRCULAR LETTER/CVM/SIN/No. 02/2016
Rio de Janeiro, March 31, 2016
Subject: Operational procedures applicable to non-resident investors not requalified, under the terms of CMN Resolution No. 4,373/14 and CVM Instruction No. 560/15

Dear Sirs,

As provided in Article 9 of CVM Instruction No. 560/15, the registration of a non-resident investor that is not updated in accordance with the provisions of that Instruction will be suspended, for no longer complying with "one of the requirements established in the specific regulation" for the maintenance of the record and the conduct of its operations.

In this regard, we remind you that, pursuant to Art. 27 of CVM Instruction No. 560, as amended by Art. 1 of CVM Instruction No. 574, the deadline for completing the requalification process for non-resident investors will end on 3/31/2016.

Thus, once suspended from the non-resident investor's registration, they will be prohibited from acquiring any new financial asset admitted by regulation, or even opening any new position, even in derivative or future settlement markets.

The aforementioned registration suspension status, however, does not prevent these investors from reducing or closing positions already opened, in spot or futures markets, up to the limit of zeroing out all their positions. Nor does such suspension imply a prohibition for such investors to proceed with the repatriation of their resources to their respective jurisdictions of origin, where they are constituted or headquartered.

We also alert that any return of the investor to the Brazilian market must be preceded by a new registration, carried out in accordance with the provisions of CVM Instruction No. 560/15, through a specific request formulated via the SIE-WEB system by its appointed representative.

Sincerely,

DANIEL WALTER MAERDA BERNARDO
Superintendent of Institutional Investor Relations