Circular Letter CVM/SMI 01/11

CIRCULAR LETTER/CVM/SMI/No. 001/2011
São Paulo, April 11, 2011.
Subject: Supervision of Autonomous Investment Agents

Dear Directors Responsible for CVM Instruction No. 387, of April 28, 2003,

1. Despite the provisions of CVM Instruction No. 434, of June 22, 2006, and CVM Deliberation No. 372, of January 23, 2001, the Securities and Exchange Commission (Comissão de Valores Mobiliários) has detected the execution of contracts through which Autonomous Investment Agents hire natural persons to perform activities of business brokerage and client acquisition in the securities market.

2. The subject matter of these contracts constitutes an activity exclusive to persons authorized or registered with the CVM as set forth in Article 16 of Law No. 6,385, of 1976; therefore, their execution is irregular when the hired party does not possess authorization or registration with this Agency.

3. Therefore, and considering that the activity of Autonomous Investment Agents is carried out under the responsibility of the intermediaries with whom they have contracts for distribution and mediation, these intermediaries must take measures to ensure that Autonomous Investment Agents acting as their representatives refrain from hiring persons not authorized or registered with this Agency, as well as to immediately terminate contracts that are found to be in dissonance with the aforementioned Article 16.

Sincerely,

Waldir de Jesus Nobre
Superintendent of Market Relations and Intermediaries