Circular Letter CVM/SIN 04/21

SECURITIES COMMISSION OF BRAZIL
Rua Sete de Setembro, 111/2-5º and 23-34º Floors – Center – Rio de Janeiro - RJ – ZIP Code: 20050-901 – Brazil Tel.: (21) 3554-8686 - www.cvm.gov.br Circular Letter No. 4/2021/CVM/SIN Rio de Janeiro, April 7, 2021

To applicants for registration as securities consultants Subject: Change in the securities consultant accreditation regime – CVM Resolution No. 19

Dear Sirs,

The Securities Commission (CVM) issued CVM Resolution No. 19 on 2/25/2021, which now governs the activity of securities consulting, and revoked CVM Instructions No. 592, 619, and CVM Deliberation No. 783, as a result of the review and consolidation of CVM norms determined by Decree 10.139.

Additionally, the CVM is gradually adapting its regulation to the guidelines of Decree 10.178, which is reflected in certain adjustments to the deadlines and procedures for obtaining authorization to exercise activities regulated by the Agency.

In this sense, the authorization to carry out the consulting activity, considered moderate risk, is now automatically granted upon submission of certain documents and information to the CVM. We clarify that there were no changes to the provisions regulating the activity nor regarding the deadlines for submitting periodic information.

Thus, the registration of an individual or legal entity consultant will be granted automatically if the applicant files all documents listed in Annex B of the current regulation, if an individual; or Annex C, if a legal entity.

If the applicant does not submit all documents or fails to meet any of the requirements established by the regulation, the request will be denied via a Letter, which will be sent to the electronic address (email) indicated by the interested party in the request.

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

We remind you that, despite the filing of all required documents ensuring the automatic registration referred to in Decree 10.178, when requesting accreditation, the applicant must ensure that they meet all requirements established in Article 3 for individuals, and in Article 4 for legal entities.

Therefore, when the CVM identifies during its inspection activities that the applicant obtained accreditation without meeting the requirements or through falsification of documents or declarations presented, their registration will be cancelled in accordance with Article 10, items III and IV, of the Resolution. In this sense, we reinforce that applicants who hold registration as autonomous investment agents must cancel that registration before requesting accreditation as a securities consultant (Article 4, § 7º, of the Resolution).

While the electronic system for granting automatic authorization and receiving documents is not available, the automatic authorization referred to in the main text will take effect five (5) business days after the request is filed with the CVM.

Cases of individual accreditation based on proof of experience or recognized expertise will have a differentiated procedure, as stated in Article 3, §§ 3º to 8º. Thus, applicants who opt for accreditation by experience must initially send to the CVM for analysis the documents proving professional experience of at least 7 (seven) years in activities directly related to securities consulting, management of third-party resources, or analysis of securities.

On the other hand, applicants for registration based on recognized expertise and high qualification in a field of knowledge must also demonstrate through suitable documents that they possess such condition, which qualifies them to exercise the activity. Only after the SIN (Department of Institutional Investors Supervision) expresses itself on whether the experience or recognized expertise are valid for accreditation should the applicant submit their accreditation request with the other documents required by the regulation.

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

The SIN published, on the CVM website at https://www.gov.br/cvm/pt-br/assuntos/regulados/consultas-por-participante/consultores-de-valores-mobiliarios, a guide with more operational details on the new automatic accreditation process established by the Resolution.

Sincerely,

Digitally signed by
DANIEL WALTER MAEDA BERNARDO
Head of Institutional Investors Supervision Department