Circular Letter CVM/SIN No. 09/2016

COMMISSION OF 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. 09/2016/SIN/CVM Rio de Janeiro, December 30, 2016

To Administrators of Investment Participation Funds (“FIPs”)

Subject: Submission of Periodic Information by FIPs – Article 46 of CVM Instruction No. 578/16

Dear Sirs,

The purpose of this Circular Letter is to provide clarifications regarding the submission of periodic information by FIP administrators, as required by Article 46 of CVM Instruction No. 578/16, issued on August 30, 2016 (“ICVM 578” or “Instruction”) and published on August 31, 2016. These clarifications aim to resolve doubts regarding the best way to comply with this obligation, avoiding potential delays in the submission of information and assisting the supervision of these funds by the Superintendence of Institutional Investor Relations – SIN.

Quarterly Report

Regarding the FIP Quarterly Report, required by Article 46, item I of ICVM 578, we inform you that the model provided by Annex 46-I of the Instruction is currently under development by this Agency. Thus, FIP administrators must continue to submit the Quarterly Report via the Document Submission System – CVMWeb, using the previous format, used during the validity of CVM Instructions No. 209/94 (“ICVM 209”) and 391/03 (“ICVM 391”), until the Annex 46-I model is made available in the CVMWeb system by this Agency. We emphasize that other forms of submission different from the CVMWeb system, such as physical/electronic protocol or email submission of the document, should not be used for forwarding the Quarterly Report.

CDA - Composition and Diversification of Investments

Regarding the portfolio composition report (CDA - Composition and Diversification of Investments), required by Article 46, item II of ICVM 578, we remind participants that this document must be submitted semi-annually based on the FIP's fiscal year (as per the sole paragraph of Article 46 itself), and no longer based on the civil calendar (base dates of June and December of each year), as was the case previously in ICVM 209 and ICVM 391.

Thus, FIPs that have a fiscal year-end in December of each year, for example, must submit CDAs related to the base dates June (end of the 1st semester of the fund's fiscal year) and December (end of the fiscal year itself) by the end of November of the same year and May of the following year, that is, within 150 (one hundred and fifty) calendar days after the respective base date. For FIPs with a fiscal year-end in March of each year (end of the 1st semester in September of the previous year), the submission of the CDA related to the 1st semester must be done by the end of February of the following year, and the CDA related to the end of the fiscal year must be done by the end of August of the same year in which the fiscal year was closed, and so on.

Thus, following the above criterion, FIPs that have a base date of July/2016 for the first semi-annual CDA to be submitted under the new rule (that is, funds with a fiscal year-end in July/2016 itself and funds with a fiscal year-end in January/2017, whose 1st semester of their fiscal year ends in July/2016) should deliver the report by the end of December/2016. However, we clarify that, in this case, this first CDA should not be delivered, since, at the base date July/2016, ICVM 578 had not yet been issued. Thus, in this case, the first semi-annual CDA to be sent will be the one related to the subsequent base date, that is, the month of January/2017, with delivery of the report by the end of June/2017.

Similarly, for FIPs that have a base date of April/2016, May/2016 and June/2016 for the first semi-annual CDA to be submitted under the new rule (whose submission deadline, up to 150 days, was still open when ICVM 578 was published on 31/08/2016), there is also no need to submit this report, for the reason stated above. For the periods January/2016, February/2016 and March/2016, this understanding also applies because, in addition to the rule not existing on these base dates, the submission deadline established by the new rule, up to 150 days, had ended before the publication of ICVM 578.

However, for FIPs that have a base date of August/2016 for the first semi-annual CDA to be submitted under the new rule (that is, funds with a fiscal year-end in August/2016 itself and funds with a fiscal year-end in February/2017, whose 1st semester of their fiscal year ends in August/2016), the new rule already prevails, since ICVM 578 entered into force on 31/08/2016 (date of its publication), that is, the rule was already in force when the month of August/2016 closed. Thus, the first semi-annual CDA to be sent in these cases will be the one related to the base date August/2016, and must be sent by the end of January/2017. Obviously, semi-annual CDAs related to the base date September/2016 onwards, whether referring to the end of the 1st semester within the fund's fiscal year or to the end of the fiscal year itself, must also follow the new rule, being sent normally via CVMWeb within 150 calendar days after the respective base date.

In order to facilitate the visualization of these concepts, we have inserted below a table that summarizes the clarifications:

Summary - Composition and Diversification of Investments (CDA)

Fund Type	Base Date for End of 1st Semester of Fund's Fiscal Year	Deadline for CDA Submission under New Rule
FIP [1]	March/16 or earlier month	No need to submit.
FIP [1]	April/16, May/16 and June/16	No need to submit.
FIP [1]	July/16	No need to submit. (1st submission from base date January/17)
FIP [1]	August/16	Up to 150 days after the base date (i.e., up to 30/01/2017)
FIP [1]	September/16 onwards	Up to 150 days after the respective base date (i.e., up to 27/02/2017 for Sep/16, up to 30/03/2017 for Oct/16, etc)

[1] This table also applies to FMIEEs already existing when ICVM 578 was published.

Financial Statements

Regarding the annual financial statements (“FS”) required by Article 46, item III of ICVM 578, we clarify that, with the issuance of the Instruction, all annual FS of FIPs with fiscal years ending in May/2016, June/2016 and July/2016, whose submission deadline under the previous rule (submission within 120 days, according to art. 32, III of ICVM 391) was still open when the new rule was published, can be submitted within 150 days after the end of the fund's fiscal year, according to the deadline established in ICVM 578. For the annual FS of FIPs with fiscal years ending in April/2016 or earlier, the rule of ICVM 391 remains, since the submission deadline (up to 120 days) had already ended when ICVM 578 was published.

Similarly, the annual FS of FMIEEs with fiscal years ending in June/2016 and July/2016, whose submission deadline under the previous rule (submission within 90 days, according to art. 34, III of ICVM 209) was still open when ICVM 578 was published, can be submitted within 150 days after the end of the fund's fiscal year. For the annual FS of FMIEEs with fiscal years ending in May/2016 or earlier, the rule of ICVM 209 remains, since the submission deadline (up to 90 days) had already ended when ICVM 578 was published.

Finally, regarding the semi-annual FS of FIPs and FMIEEs that had the 1st semester of the fund's fiscal year ended in July/2016, whose submission deadline under the previous rule (submission within 60 days, according to art. 32, II of ICVM 391 and art. 34, II of ICVM 209) was still open when ICVM 578 was published, do not need to be submitted, since the new rule no longer requires the preparation and submission of semi-annual FS. For the semi-annual FS of FIPs and FMIEEs that had the 1st semester of the fund's fiscal year ended in June/2016 or earlier, the rules of ICVM 391 and ICVM 209 remain, since the submission deadline established in both rules (up to 60 days) had already ended when ICVM 578 was published.

In order to facilitate the visualization of these concepts, we have inserted below the tables that summarize the clarifications:

Summary – Annual Financial Statements

Fund Type	Base Date for End of Fund's Fiscal Year	Deadline for Submission of Annual FS under New Rule
FIP	April/16 or earlier month	Up to 120 days after the end of the fiscal year (according to art. 32, III of ICVM 391)
FIP	May/16, June/16 and July/16	Up to 150 days after the end of the fiscal year (according to art. 46, item III of ICVM 578)
FIP	August/16 onwards	Up to 150 days after the end of the fiscal year (according to art. 46, item III of ICVM 578)
FMIEE [2]	May/16 or earlier month	Up to 90 days after the end of the fiscal year (according to art. 34, III of ICVM 209)
FMIEE [2]	June/16 and July/16	Up to 150 days after the end of the fiscal year (according to art. 46, item III of ICVM 578)
FMIEE [2]	August/16 onwards	Up to 150 days after the end of the fiscal year (according to art. 46, item III of ICVM 578)

[2] FMIEEs already existing when ICVM 578 was published.

Summary – Semi-Annual Financial Statements

Fund Type	Base Date for End of 1st Semester of Fund's Fiscal Year	Deadline for Submission of Semi-Annual FS
FIP and FMIEE [3]	June/16 or earlier month	Up to 60 days after the respective base date (according to art. 32, II of ICVM 391 and art. 34, II of ICVM 209)
FIP and FMIEE [3]	July/16	No need to submit.
FIP and FMIEE [3]	August/16 onwards	No need to submit.

[3] FMIEEs already existing when ICVM 578 was published.

For additional clarifications, please contact the Structured Funds Monitoring Management - GIE, via the electronic address gie@cvm.gov.br.

Sincerely,

ROBERTO DA SILVA MENDONÇA PEREIRA
Superintendent of Institutional Investor Relations In exercise

Lineage: In force