Circular Letter CVM/SIN 02/2017

SECURITIES AND EXCHANGE COMMISSION
Rua Sete de Setembro, 111/2-5th and 23-34th Floors – Center – Rio de Janeiro - RJ – CEP: 20050-901 – Brazil Tel.: (21) 3554-8686 - www.cvm.gov.br Circular Letter No. 2/2017/SIN/CVM Rio de Janeiro, June 5, 2017

To Administrators of Structured Investment Funds

Subject: Entry into force of the Structured Fund Management System

Dear Sirs,

The purpose of this Circular Letter is to announce the launch of the new Structured Fund Management System (SGF), which will take place on June 8, 2017.

From that date, administrators, through their CVMWeb login and password, will have access to the aforementioned system and will be able to directly register structured funds (FIP, FII, FIDC, and Funcine), according to the step-by-step guide in the User Manual available on the initial screen of the SGF itself.

Developed also as a management tool, the SGF allows tracking and altering information for each fund throughout all phases of its existence, starting with the fund's registration (which will be granted automatically), passing through updates of registration information, registration of quota subscriptions, changes to the end date of the fiscal year, substitution of the administering institution or other participants, and, finally, the closure of funds.

The User Manual available in the system also guides on procedures for requesting exemptions from regulatory requirements for registration purposes, which must be submitted by the administrator exclusively through the SGF, prior to the end of the operational registration process.

The SGF also allows for the consultation of registration and alteration protocols and consolidated queries of all available information.

It is important to note that the system is intended for the management of registration information for funds; therefore, the submission of periodic information (Monthly Report, Annual Report, DFs, etc.) already in force through the CVMWEB Document Submission System or Fundos.Net undergoes no changes.

SECURITIES AND EXCHANGE COMMISSION
Rua Sete de Setembro, 111/2-5th and 23-34th Floors – Center – Rio de Janeiro - RJ – CEP: 20050-901 – Brazil Tel.: (21) 3554-8686 - www.cvm.gov.br

We also emphasize that the fund regulation archived by the administrator in the SGF, for the purpose of its operational registration, and the audited financial statements for the purpose of closure, must also be submitted via CVMWeb or Fundos.Net, through the document submission system. This exceptional procedure will remain in effect until the development of the tool that will integrate CVMWeb/Fundos.Net with the SGF is completed.

I) Important procedures for changing the fund manager

In the event that a change of manager is necessary, we inform administrators that they must register the new fund manager and then delete the old one. Otherwise, the system will report an error in the information provision.

II) Changes that will continue to be handled by GIE

We alert that the version of the SGF to be made available on June 8, 2017, will not include changes of administrator or the transformation of funds (for example, from an FIP to an equity fund). In such cases, administrators must still request the GIE, via the email address gie@cvm.gov.br, any changes of this scope.

In this regard, the email must contain as the subject the expression “Administrator Change” or “Fund Transformation”, as appropriate, followed by the name of the fund and all applicable documentation (minutes of the meeting, administrator act, new registered regulation, etc.).

A new version of the SGF is already under development, which will be made available to participants containing these functionalities; when this occurs, it will be the subject of a specific future communication.

III) Transitional Provisions

III.1) Registration Changes

From June 5, 2017, the GIE will no longer carry out registration changes in the manner specified by Circular Letter No. 1/2017/CVM/SIN/GIE, given the entry into force of the system from June 8, 2017.

Thus, we request that administrators with demands for registration changes after this date wait for the system to enter into force, in order to directly carry out registration changes in the SGF.

III.2) Operational Registrations

From June 5, 2017, the GIE will also no longer act in the operational registration of structured funds. Thus, administering institutions must wait for June 8, 2017, to directly register funds through the SGF system.

In this regard, we also clarify that the Office identifying the fund registration will no longer be issued, as the SGF itself will generate a protocol with the registration completed.

For structured funds whose operational registration request was submitted by the administrator prior to June 5, 2017, the GIE will continue to carry out such registration manually, as it had been doing until then.

III.2) Fund Closure

Structured funds that have not yet been manually closed by the GIE upon the entry into force of the SGF must be closed by the administrator directly in the system.

To do so, the administrator must follow the flow provided in the system itself, including archiving in the SGF itself the documents requested there.

For additional clarifications, we request contacting the Structured Fund Monitoring Management - GIE, via the email address gie@cvm.gov.br.

Sincerely,

DANIEL WALTER MAEDA BERNARDO
Superintendent of Institutional Investor Relations