Circular Letter CVM/SNC 118/96

CIRCULAR LETTER/CVM/SNC/N° 118/96
Rio de Janeiro, December 10, 1996
SUBJECT - SUBMISSION OF INFORMATION – CVM Instruction No. 216/94 Delay and Irregularities - Collection of Coercive Fine CVM Instruction No. 216/94

Article 22 of CVM Instruction No. 216/94 establishes that independent auditors must, within 30 (thirty) days from the occurrence, keep updated the information required in Articles 11, 12, and 13. Regarding Article 20 of CVM Instruction No. 216/94, independent auditors must annually submit, by the last business day of April, information relating to the previous fiscal year.

In monitoring the submission of information and documents by independent auditors, we have observed delays regarding the deadlines defined by Articles 20 and 22 of CVM Instruction No. 216/94.

Regarding the information required in Article 20 of CVM Instruction No. 216/94, we are enclosing instructions for its correct presentation, previously anticipated by CIRCULAR LETTER/CVM/SNC/N° 03, of January 23, 1996. It should be noted that the non-existence of information to be provided to any of the items of Article 20 does not exempt from formal communication, which must be carried out using the expression "NOT APPLICABLE".

At this time, we remind you that Article 23 of CVM Instruction No. 216/94 establishes that non-compliance with the deadlines set forth in the aforementioned Instruction will subject the auditor to the application of a daily coercive fine of 69.20 UFIRs, applicable from the 1st business day following the end of the deadline.

In this sense, we request your special attention to comply with these deadlines, as from January 1, 1997, the collection of coercive fines will be implemented.

We also inform you that, regardless of the administrative collection of fines, the delay in presenting the information required by CVM Instruction No. 216/94 constitutes a violation of Article 20 of the aforementioned Instruction, subjecting the auditor to an administrative inquiry to be instituted under summary procedure.

Finally, we emphasize that the sending of any inadequate or incomplete information will be considered as if it had not been sent, and for all purposes, the counting of the deadline will not be suspended. Nor will the payment of any fines exempt the auditor from other applicable legal sanctions.

Sincerely,

Antônio Carlos de Santana
SUPERINTENDENT OF ACCOUNTING AND AUDITING STANDARDS