Circular Letter CVM/SMI 02/2021

25/05/2021 SEI/CVM - 1271690 - Circular Letter

SECURITIES AND EXCHANGE COMMISSION OF BRAZIL (CVM)

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Circular Letter No. 02/2021/CVM/SMI

Rio de Janeiro, May 25, 2021

To Directors pursuant to art. 28 of CVM Instruction No. 461/07, to Market Administrators and Directors as referred to in art. 4, item I, of CVM Instruction No. 505/11, to Intermediaries

Subject: Duties of market administrators and intermediaries to adopt procedures and controls aimed at ensuring the effectiveness (i) of temporary prohibitions on performing any type of operation in the securities market applied by the CVM and (ii) of commitments assumed within the scope of Commitment Terms celebrated with the CVM

Dear Directors,

1. This Circular Letter aims to clarify to market administrators and intermediaries the need to adopt procedures seeking to ensure the effective compliance with final and unappealable penalties of temporary prohibition to operate in any type of operation in the securities market applied by the CVM, within the scope of sanctioning processes judged by the agency, as well as with the obligations assumed by those committing not to perform operations in the securities market within the scope of commitment terms celebrated with the CVM.

2. In this sense, it is worth noting that the agency maintains on its website (https://www.gov.br/cvm/pt-br/assuntos/protecao/afastamentos-impedimentos-temporarios), within the scope of its active transparency, the complete and updated list of those penalized by the CVM with the penalty of prohibition to perform any type of operation in the securities market, indicating the start and end dates of the validity of the prohibition, whose access is permitted to all market participants and which enables the adoption of the procedures and controls described in this circular letter.

3. On the same page of the website, the complete list of commitment terms celebrated with the CVM can also be consulted, in which the commiters assumed the temporary obligation not to perform operations in the securities market.

4. Regarding the subject, based on art. 39, items I and IV, of the Internal Regulations of the CVM, approved by CVM Resolution No. 24, of March 5, 2021, the Superintendence of Market Relations and Intermediaries expresses its understanding that market administrators and intermediaries must adopt procedures so that those penalized and those committing, listed in the cited lists, are prevented from performing operations in the securities market during the validity of the penalty or the commitment assumed, except for the closure of open positions before the start of the validity of the prohibition.

5. It is worth clarifying that this impediment does not cover custody transfers, as permitted by applicable regulations, which are not resulting from operations performed in the securities market.

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25/05/2021 SEI/CVM - 1271690 - Circular Letter

6. Incidentally, we clarify that non-observance of the procedures listed here may constitute non-compliance with art. 20, paragraph 1, item V, c/c art. 32, item I, all of CVM Instruction No. 505/11, by intermediaries, and with art. 15, item V, of CVM Instruction No. 461/07, by market administrators.

Sincerely,

FRANCISCO JOSÉ BASTOS
Superintendent of Market Relations and Intermediaries

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Document electronically signed by Francisco José Bastos Santos, Superintendent, on 05/25/2021, at 19:11, based on art. 6 of Decree No. 8.539, of October 8, 2015.

The authenticity of the document can be verified on the site https://sei.cvm.gov.br/conferir_autenticidade, informing the verification code 1271690 and the CRC code EDF00BD5.
The authenticity of this document can be verified by accessing https://sei.cvm.gov.br/conferir_autenticidade, and typing the "Verification Code" 1271690 and the "CRC Code" EDF00BD5.

Reference: Process No. 19957.008127/2020-58 SEI Document No. 1271690