Circular Letter CVM/SMI 06/2019

SECURITIES COMMISSION OF BRAZIL
Rua Sete de Setembro, 111/2-5º and 23-34º Floors, Centro, Rio de Janeiro/RJ – CEP: 20050-901 – Brazil - Tel.: (21) 3554-8686 Rua Cincinato Braga, 340/2nd, 3rd and 4th Floors, Bela Vista, São Paulo/ SP – CEP: 01333-010 – Brazil - Tel.: (11) 2146-2000 SCN Q.02 – Bl. A – Ed. Corporate Financial Center, S.404/4th Floor, Brasília/DF – CEP: 70712-900 – Brazil -Tel.: (61) 3327-2030/2031 www.cvm.gov.br Circular Letter No. 6/2019-CVM/SMI Rio de Janeiro, October 18, 2019. To Institutions authorized to act as members of the distribution system, on their own behalf and on behalf of third parties, in the negotiation of securities in regulated securities markets. Subject: Communication of the identification of occurrence or indications of violation of legislation, as established by art. 32, IV, of CVM Instruction 505 and by art. 17, III, of CVM Instruction 497. Dear Sirs,

1. In accordance with art. 32, item IV, of CVM Instruction 505, intermediaries must inform the CVM whenever they verify the occurrence or indications of violation of legislation that falls under the supervision of the Autarchy, within a maximum period of 5 (five) business days, counted from the occurrence or identification of the fact.

2. The determination contained in Circular Letter No. 06/2015/CVM/SMI is reiterated, requiring intermediaries to maintain their own regulations for compliance with this obligation, in accordance with art. 3, I, of CVM Instruction 505.

3. Furthermore, it is reiterated that the communication in question is the responsibility of the statutory director indicated in accordance with item I of art. 4 of CVM Instruction 505, with the warning that, in light of art. 38 of the Instruction, failure to comply with this obligation is considered a serious offense for the purposes set forth in §3 of art. 11 of Law 6.385/76.

4. A similar provision is brought by CVM Instruction 497, which deals, in its art. 17, item III, with the obligation of the institution contracting autonomous investment agents to communicate to the CVM conduct by contracted parties that may indicate a violation of norms issued by the Commission. In this case, it is an obligation pertaining to the director responsible for compliance with CVM Instruction 497, indicated in compliance with art. 17, VII, of the norm.

5. Regarding the channel for submitting communications, the guidance given in Circular Letter No. 06/2015/CVM/SMI and in items 100 to 103 of Circular Letter No. 4/2018-CVM/SMI is revoked. From this date forward, communications must be made through the Digital Protocol of Documents, available on the CVM website, handled by the SMI.

6. Finally, it is highlighted that the eventual forwarding of communications regarding irregularities to self-regulatory organizations does not substitute communication to the CVM.

Sincerely,
Document electronically signed by Francisco José Bastos Santos, Superintendent, on 10/18/2019, at 19:20, based on art. 6, § 1, 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, by providing the verifier code 0862810 and the CRC code 5935A34B.
This document's authenticity can be verified by accessing https://sei.cvm.gov.br/conferir_autenticidade, and typing the "Código Verificador" 0862810 and the "Código CRC" 5935A34B.
Reference: Process No. 19957.009678/2019-03 SEI Document No. 0862810