Circular Letter CVM/SIN No. 3/2016

SECURITIES AND EXCHANGE COMMISSION OF BRAZIL
Rua Sete de Setembro, 111/2-5th and 23-34th Floors – Center – Rio de Janeiro - RJ – ZIP: 20050-901 – Brazil Tel.: (21) 3554-8686 - www.cvm.gov.br Circular Letter No. 3/2016/SIN/CVM Rio de Janeiro, May 11, 2016. To Representatives of Non-Resident Investors Subject: CVM Instruction No. 560/2015 – XML Standard for the Monthly Report of Non-Resident Investors and guidelines for completion.

Dear Sirs,

1. We refer to the obligation imposed by CVM Instruction No. 560/2015, in its Article 14, item I, to send the monthly report with the consolidated movements and applications of resources of non-resident investors, according to Annex 14-A of the regulation.

2. In this regard, we inform you that changes have been made to the XML standard of the aforementioned document, previously disclosed to representatives of non-resident investors through Circular Letter No. 9/2015/SIN/CVM. The new standard for creating the XML file is available at the electronic address cvmweb.cvm.gov.br/SWB/Sistemas/SCW/PadroesXML/PadraoXMLInfoMensalINR.asp.

3. We remind you that this report must be sent monthly via the CVMWeb System, containing information about the movements and transfers that occurred during the period, and the investor's portfolio position on the last business day of the base month.

4. Thus, the first submission should be made at the beginning of August 2016, based on the situation of non-resident investors on the last day of July 2016. Failure to send the monthly report within ten business days after the end of each month will result in a daily fine of R$ 500.00.

5. We also inform you that attached to this Circular Letter is a guide with instructions for completing the monthly report.

6. At an appropriate time, this Superintendency will publish the XML standard for the semi-annual report of non-resident investors, whose first submission will occur only in January 2017, reflecting the positions of December 2016.

7. With the publication of this Circular Letter – as well as the XML standard – this technical area hopes to contribute to the development of technological solutions that allow the industry to meet, in a systematic manner, the regulatory platform for non-resident investments.

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

8. If additional clarification is needed regarding the XML standards, please contact the systems manager Edyr Luiz da Rocha, at phone (21) 3554-6944.

Sincerely,

DANIEL WALTER MAEDA BERNARDO
Superintendent of Institutional Investor Relations

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

ANNEX – Guidelines for completing the XML file.
This annex aims to guide the correct completion of the monthly report of non-resident investors that must be sent via the CVM website, in XML format.
For better understanding, the fields were subdivided in the same way as the provided XML standard.

I – Header
Representative Code Fill in with the CVM code of the representative, which consists of five digits.
Document Competence Date The document competence date must be entered in the MM/YYYY format. The competence of the report is the last day of the month. Therefore, for the first report to be delivered in the first ten business days of August, the competence will be 07/2016. File Generation Date The file generation date must be reported in DD/MM/YYYY format.

II – Resource Movement
Full Participant Code Fill in with the full code of the investor, which consists of 19 digits, in the format AAAAA.BBBBBB.CCCCCC.T-D, where:
AAAAA – representative's CVM code;
BBBBBB – account holder's CVM code;
CCCCCC – account participant's CVM code (investor); T – account type (0 – for own accounts, and 1 – for collective accounts); D – check digit.
When inserting the full code, it is important to verify the code formatting, which must be filled with dots and a dash.
Resource Entry Value Present the total value, in reais, of repatriated resources during the period (transfer of resources from the investor, from abroad or from their non-resident account in Brazil, to Portfolio Investment). The total value must be an integer and in reais (R$ 1). Note: in the case of movements in another currency, use the equivalent value in Reais on the date of the movement, for each operation. Resource Exit Value Present the total value, in reais, of expatriated resources during the period (transfer of resources from Portfolio Investment to the investor abroad, or to their non-resident account in Brazil). The total value must be an integer and in reais (R$ 1).

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

III – Transfer between Investment Modalities
For the next fields, the total values, in R$ 1, of movements that occurred during the reference month must be presented.
Note: in the case of movement in another currency, use the equivalent value in Reais on the date of the movement.
From non-resident investor portfolio to Non-resident Receivables This field should be used to record migrations of Portfolio Investments to RDEs in modality 1071 (Commodities and Futures Exchange/Res. 2687/00) or unregistered assets via RDE, as provided for in Art. 7, item I, of Resolution No. 4,373/2014. From Non-resident Receivables to non-resident investor portfolio Should be used to record migrations of RDEs in modality 1071 (Commodities and Futures Exchange/Res. 2687/00) or between assets not registered via RDE, to Portfolio Investment. From non-resident investor portfolio to Depositary Receipts Fill in with the transfer value from the non-resident investor portfolio to applications in Depositary Receipts. From Depositary Receipts to non-resident investor portfolio Fill in with the transfer value from applications in Depositary Receipts to the non-resident investor portfolio. From non-resident investor portfolio to foreign direct investment Fill in with the transfer value from the non-resident investor portfolio to the foreign direct investment modality (Resolution No. 3,844/2010). From foreign direct investment to non-resident investor portfolio Fill in with the value transferred from the foreign direct investment modality in the country to the non-resident investor portfolio.

IV – Transfer of Resources between Portfolios of Non-Resident Investors a) For the same investor – this field should be used to inform transfers of values between accounts of the same non-resident investor. Note: these transfer values, occurring during the reference month, must be presented in reais (R$ 1).

Origin Investor Full Code Fill in with the full code of the investor transferring the resources. This code consists of 19 digits, in the format AAAAA.BBBBBB.CCCCCC.T-D.
Note: since it is a transfer between portfolios of the same investor, the CCCCCC part of the code must be the same for both investors.
When inserting the full code, it is important to verify the code formatting, which must be filled with dots and a dash.
Value Received Fill in with the value received (R$ 1) from the investor mentioned above.
Destination Investor Full Code Fill in with the full code of the investor receiving the resources. This code consists of 19 digits, in the format AAAAA.BBBBBB.CCCCCC.T-D.
Note: since it is a transfer between portfolios of the same investor, the CCCCCC part of the code must be the same for both investors.
Value Sent Fill in with the value sent (R$ 1) to the investor mentioned above.

b) For different investors - these fields should be used to inform transfers of values between accounts of different non-resident investors.
Note: these transfer values, occurring during the reference month, must be presented in reais (R$ 1).

Origin Investor Full Code Fill in with the full code of the investor transferring the resources. This code consists of 19 digits, in the format AAAAA.BBBBBB.CCCCCC.T-D.
Note: since it is a transfer between different investors, the CCCCCC part of the informed code must also be different.
Value Received Fill in with the value received (R$ 1) from the investor mentioned above.
Destination Investor Full Code Fill in with the full code of the investor receiving the resources. This code consists of 19 digits, in the format AAAAA.BBBBBB.CCCCCC.T-D.
Note: since it is a transfer between different investors, the CCCCCC part of the informed code must also be different.
Value Sent Fill in with the value sent (R$ 1) to the investor mentioned above.

V – Resource Applications
Application Code Fill in with the application code listed in the following table, also available on the CVM website.
Market Value of Application The market value of the application must be provided for all codes in the table. The net market value for the type of application must be presented, in R$ 1, on the last business day of the reference month. When the market value is not available, it must be filled in with the acquisition cost (which may occur for codes 1 to 13 and 25). Notional Value of Application For items 15 to 24, both the market value and the notional value of net positions (bought - sold) in derivatives must be reported, without taking Income Tax into consideration, in R$ 1, on the last business day of the reference month.

Code Type of Application Comments
1 Shares and capital participation instruments This code also includes BDRs, rights and subscription bonuses. Do not include the distributable amount of corporate events (dividends, bonuses, and JCP) on own shares or received in loan in this item (will be declared in item 29). 2 Shares and other securities lent Fill in with the total of shares and securities lent. Do not include the distributable amount of corporate events (dividends, bonuses, and JCP) on shares lent in this item (will be declared in item 29). 3 Debt instruments – fixed income – federal public bonds 4 Debt instruments – fixed income – state or municipal public bonds 5 Debt instruments – fixed income – issued by financial institutions or by institutions authorized to operate by the Central Bank of Brazil 6 Debt instruments – fixed income – issued by non-financial companies 7 Investment fund shares – stock portfolio 8 Investment fund shares – fixed income bond portfolio 9 Investment fund shares – real estate 10 Investment fund shares – private equity 11 Investment fund shares – credit rights 12 Investment fund shares – other portfolios 13 Gold 14 Cash Resources received that have remained in account. Values in cash used to constitute guarantee margins must also be added to this item. 15 Interest rate futures contracts 16 Currency or currency swap futures contracts 17 Foreign exchange swap contracts with periodic adjustment 18 Stock index futures contracts 19 Other futures contracts 20 Interest rate options 21 Currency options 22 Stock index options 23 Other options 24 Other derivative instruments 25 Other applications 26 Liabilities for shares and other securities received in loan Fill in with the total of shares and securities received in loan. Do not include the distributable amount of corporate events (dividends, bonuses, and JCP) on shares received in loan in this item (must be declared in item 27). 27 Other liabilities Fill in with adjustments payable for derivative positions (all types), brokerage fees, taxes, services due, share rental payable, distributable amount of corporate events on shares received in loan, etc. 28 Receivables from share sales Fill in with the receivable amount regarding the sale of shares (own or received in loan) that have not yet been settled. Note: this item serves as a detail; these shares still integrate Equity, as they have not yet been settled, and are declared in code 1 of this file. Item 28 does not enter the Equity calculation. 29 Receivables related to shares Inform the distributable amount of corporate events (dividends, bonuses, and JCP) on shares in the investor's portfolio (own or received in loan) and also those lent. 30 Other receivables Fill in with adjustments receivable from derivative positions (all types), return of brokerage fees, share rental receivable, etc.

VI – Shareholders' Equity
Inform the shareholders' equity value (R$ 1) of the non-resident investor on the last business day of the reference month. For the calculation of this value, sum the values reported for applications of codes 1 to 14, 25, 29, and 30; and subtract the values reported for applications of codes 26 and 27. Equity = (1 to 14) + 25 + 29 + 30 – 26 – 27.