Circular Letter CVM/SIN No. 07/2019

SECURITIES AND EXCHANGE COMMISSION OF BRAZIL
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. 07/2019/CVM/SIN
Rio de Janeiro, June 19, 2019

To administrators of Secured Credit Rights Investment Funds (FIDCs) Subject: Implementation of new fields in the FIDC Monthly Report – CVM Instruction No. 576/16

Dear Sirs,

1. The purpose of this Circular Letter is to communicate to the market the implementation of new fields in the FIDC Monthly Report available on the CVM Document Submission System (CVMWeb), as established by CVM Instruction No. 576/16 (“ICVM 576”). In this regard, we provide the following clarifications.

2. ICVM 576 amended the FIDC Monthly Report contained in Annex A of CVM Instruction No. 489/11 (“ICVM 489”), introducing new fields aimed at improving the informational regime for the entire FIDC industry. Among the improvements brought by these new fields, we can cite, for example, (i) greater detail for Credit Rights without Substantial Acquisition of Risks and Benefits, (ii) greater detail of data relating to series within the senior class of shares, (iii) the introduction of the quantity of shareholders segregated by investor type, for senior and subordinate classes, among other improvements. To facilitate visualization, all new fields introduced by ICVM 576 are marked in gray in Annex A of the regulation.

3. ICVM 576 originally provided that the new model of the FIDC Monthly Report would apply starting from February 2017.

4. However, given the delay in the original schedule for implementing this new model of the FIDC Monthly Report in the CVMWeb system, and aiming to grant an adequate and sufficient deadline for the market's adaptation to the new model, the CVM Board, following a manifestation by the technical area, deliberated on March 7, 2017, to extend the obligation to submit the new Monthly Report to the 5th (fifth) month subsequent to the availability, by the Agency, of this new model to users of CVMWeb.

5. In this sense, we communicate to the market that the implementation in the CVMWeb system of the new model of the FIDC Monthly Report will occur in this month of June 2019. Thus, FIDC administrators will be able to view the new layout of the Monthly Report XML file on CVMWeb starting from this month. For administrators who submit the report via form, we clarify that its content strictly follows the model set forth in Annex A of ICVM 576. However, in both cases (submission via form or via XML file), we communicate that the obligation to forward the FIDC Monthly Report in the new model will apply only starting from the November 2019 period (5th month subsequent to June 2019). The submission of the Monthly Report for Nov/2019 must be carried out until 12/16/19 (the first business day subsequent to the 15-day deadline counted from the base date 11/29/19).

SECURITIES AND EXCHANGE COMMISSION OF BRAZIL
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

6. We emphasize that, during this 5-month adaptation period (periods: Jun/2019 to Oct/2019), administrators will continue to normally send FIDC Monthly Reports in the current version (that is, the version prior to ICVM 576), whether the submission is made via form or via XML file. Although the report in the new model is being made available in the system now in Jun/2019, only starting from the Nov/2019 period will CVMWeb effectively allow submission in such model (via form or XML).

7. We also inform that validations have been included in certain fields of the FIDC Monthly Report, aiming for greater security in the filling of data by administrators.

8. We further clarify that this technical area has frequently observed errors of various natures in the filling of the FIDC Monthly Report. We emphasize that the correct filling of all fields of the FIDC Monthly Report falls within the duty of diligence required of investment fund administrators, as established in art. 92 of CVM Instruction No. 555/14. Thus, the CVM requests special attention from FIDC administrators to always perform the correct filling of all fields of the Monthly Report.

9. We take this opportunity to reinforce that the filling guidelines for the FIDC Monthly Report provided by Circular Letter No. 04/2011/CVM/SIN remain entirely valid, since ICVM 576 only added new fields to the report, keeping existing fields unchanged. Thus, aiming to avoid errors in the filling of reports, we recommend that FIDC administrators read such Circular Letter.

10. In the event of any IT error when submitting the new FIDC Monthly Report (whether via form or via XML file), the FIDC administrator must contact the CVM External Support team, via email suporteexterno@cvm.gov.br.

11. Finally, we inform that any doubts related to the subjects treated in this Circular Letter, as well as doubts related to the content of the new FIDC Monthly Report, if any, should be sent to the electronic address gies@cvm.gov.br.

Sincerely,

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