Circular Letter CVM/SMI 04/07

CIRCULAR LETTER / CVM / SMI / No. 004 / 2007
Rio de Janeiro, September 25, 2007.
Subject: New system for coercive fines / Update of Director's email registration

Dear Sir,

The Superintendence of Market Relations and Intermediaries informs investment fund administrators that the CVM's new coercive fine system will shortly begin operation.

2. This new system will include a functionality designed to notify administrators of any delay in the submission of financial statements. This notification will be sent via email directly to the director responsible for the fund, at the electronic address registered with the CVM. Pursuant to Article 12 of CVM INSTRUCTION No. 452/07, the coercive fine will begin to accrue the day following the receipt of the notification, and will not include the day on which the obligation is fulfilled.

3. Considering that during the testing phase we observed that some electronic addresses contained invalid characters or were outdated, we request that administrators update the data of the director responsible for the funds by October 1, 2007, by submitting the administrative portfolio administrator registration form (Annex III of CVM Instruction No. 306/99) through the CVM website, using the following link sequence:
   CVMweb > Document Submission > Submission of documents via Form > Registration Information (select individual) > Type of Registration (select Occasional)

4. Finally, we suggest that from this date onwards, the CVM website be checked daily for messages at the provided electronic address, so that measures can be taken to send any delayed financial statements.

Sincerely,

Signed original by
WALDIR DE JESUS NOBRE
Superintendent of Market Relations and Intermediaries