Circular Letter CVM/SIN 05/21

SECURITIES AND EXCHANGE COMMISSION OF BRAZIL
Rua Sete de Setembro, 111/2-5th and 23-34th Floors, Center, Rio de Janeiro/RJ – ZIP Code: 20050-901 – Brazil Tel.: (21) 3554-8686 - www.cvm.gov.br Circular Letter No. 5/2021/CVM/SIN Rio de Janeiro, April 28, 2021

To
Administrators of investment funds regulated by CVM Instruction No. 555

Subject: Guidelines regarding the interpretation of Articles 14 and 15 of CVM Instruction No. 608.

Dear Sirs,

As is known, CVM Instruction No. 608 entered into force on January 1, 2020, which began to regulate the regime for applying daily fines, revoking and replacing CVM Instruction No. 452, of April 30, 2007.

In this context, the already revoked Article 12 of CVM Instruction No. 452 provided that “the daily fine shall begin to accrue on the day following the receipt of the communications referred to in Arts. 3 and 4 (…) and, when applied, shall not include in its calculation the day on which the obligation was fulfilled.”

On the other hand, the current CVM Instruction No. 608 provided differently on the matter, clarifying that “the daily fine shall apply from the next business day (…) after the deadline for submitting periodic information expires” (Article 14, I) and that “the daily fine shall apply until the date on which the obligation is fulfilled” (Article 15).

Thus, in the interpretation of this technical area, it is no longer permissible to deduct from the calculation of the number of days for which the daily fine is due for late submission the day on which the document required by regulation is delivered.

Thus, by way of example, if a given document has a deadline for submission set in CVM Instruction No. 555 for March 31, 2021, and is delivered on April 1, 2021, a daily fine shall be applied for 1 day (in the amount of R$ 1,000.00, for financial statements, or R$ 500.00 for other documents, as provided in CVM Instruction No. 608) against the person who appears as the administrator of the fund on the date the document submission deadline expires.

Sincerely,

Digitally signed by
DANIEL WALTER MAEDA BERNARDO
Superintendent of Institutional Investor Supervision