Circular Letter CVM/SIN 7/15

SECURITIES AND EXCHANGE COMMISSION OF BRAZIL (CVM) 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. 7/2015/CVM/SIN Rio de Janeiro, September 30, 2015.
To
Investment Fund Administrators
Subject: CVM Instruction No. 555/14 – Submission of Documents via CVMWeb System

Dear Sirs/Madams,

1. This circular letter aims to guide investment fund administrators regarding the submission of documents and fund information through the CVMWeb System, given that this routine will undergo specific modifications starting from the effective date of CVM Instruction No. 555/14 (“ICVM 555”).

2. It is worth highlighting that at this moment we are restricting the approach to the routines that will be more severely impacted starting from 10/01/15, namely, (i) registration of new funds, already under the protection of ICVM 555; (ii) adaptation of investment funds in normal operation to ICVM 555; (iii) submission of the Daily Report (Informe Diário); and (iv) submission of other documents.

2.1 Registration of 555 Funds

The registration of investment funds for operation will continue to be carried out using the current system. Our emphasis is on the fact that the standardized form with the basic information of the fund (item V of art. 59) – the former “Extrato” – will also be a mandatory submission document upon registration for operation.

Among other issues, the aforementioned form must answer whether “the fund offers daily liquidity to its unitholders”. This question aims to determine if the fund qualifies for the liberalization provided for in art. 56, I, (b), under which the administrator may not need to daily inform the unit value and the net asset value of the open fund (which differs from not submitting the Daily Report, which will continue to be due daily).

In this regard, we clarify that “daily liquidity” should be understood as a concept related to the issuance and redemption of units, so that the administrator of an investment fund that admits daily issuances and/or redemptions must also calculate and disclose the unit value and the net asset value of the fund daily (investment funds actually eligible for the liberalization are those that carry out the conversion into units of applications and redemptions on specific dates, as defined in their respective regulations).

Still regarding the registration for operation, we inform that the form with complementary information (art. 41) must be sent through the “Document Submission” functionality.

2.2 Adaptation of 409 Funds

The adaptation of investment funds constituted under the protection of CVM Instruction No. 409/04 must be carried out through the “Participant Registration Update” functionality, available in the CVMWeb System. Administrators must observe that investment funds that are still pre-operational at the beginning of the norm's effectiveness must necessarily promote their adaptation to ICVM 555 before entering normal operation, that is, before receiving their first resource contribution.

Furthermore, we alert that the submission of a regulation adapted to ICVM 555 must occur exclusively through the option in question. Thus, the submission of an adapted regulation through the “Document Submission” functionality will not imply the effective adaptation of the fund to ICVM 555.

In the “Investment Fund Registration Update” functionality, it will be asked whether the fund has already adapted to ICVM 555. We ask for attention in answering this question, since from the adaptation the fund (i) will become subject to the informational regime provided for in ICVM 555; and (ii) will lose access to the screens and routines available for 409 funds.

2.3 Daily Report

The Daily Report will continue to be submitted daily via the “Document Submission” option, even if, eventually, there are funds that do not provide daily information on the unit value and net asset value.

Fund administrators who, under the protection of art. 56, I, (b), of ICVM 555, do not daily inform the unit value and net asset value must alternatively inform the next date on which such information will be provided in the Daily Report.

2.4 Other Documents

Without prejudice to compliance with art. 46 of ICVM 555, the documents listed below must currently be forwarded to GIF_Reestruturações@cvm.gov.br:

• Documentation related to the hypotheses of incorporation, merger, and spin-off of investment funds, as provided for in art. 136, observed that to comply with items IV and V of the provision, copies of the minutes of the General Unitholders’ Meetings (AGCs) of all funds involved in the operation must be sent, accompanied by their lists of unitholders; and
• Documentation related to the liquidation plan of an investment fund, as provided for in art. 139, §6º.

Note that documents related to transformations – arts. 136 and 137 – must continue to be forwarded to the mailbox GIF_ICVM536@cvm.gov.br.

3. We request attention to the fact that until 06/30/2016 – the deadline for the adaptation of 409 funds – ports for the submission of distinct versions of applicable documents, as the case may be, for 555 funds or 409 funds, will remain available. Thus, it may be necessary for administrators to be prepared to submit the same documents in different versions, for funds subject to different regulations.

4. Finally, we inform that any doubts related to the submission of documents and information of investment funds must be forwarded to the electronic address luciana@cvm.gov.br, observed that the questions must be objective, precise, and clear.

Sincerely,

FRANCISCO JOSÉ BASTOS SANTOS
Superintendent of Institutional Investor Relations