Circular Letter CVM/SNC/GNA 02/2016

SECURITIES AND EXCHANGE COMMISSION OF BRAZIL
Rua Sete de Setembro, 111/2-5th and 23-34th Floors – Center – Rio de Janeiro - RJ – ZIP: 20050-901 – Brazil Tel.: (21) 3554-8686 - www.cvm.gov.br CIRCULAR LETTER/CVM/SNC/GNA No. 02/2016 Rio de Janeiro, May 31, 2016.
Subject: Clarifications related to the Technical Qualification Examination
Article 30 of CVM Instruction No. 308/99
NBCPA 13 (R2)

Dear Independent Auditor,

As is known to all, on August 21, 2015, NBCPA 13 (R2) was approved, which deals with the Technical Qualification Examination, established by the Federal Council of Accounting – CFC.

2. On this subject, it is important to recall that said Technical Qualification Examination is one of the requirements provided for in CVM Instruction No. 308/99 for the granting of registration as an independent auditor – natural person or as the technical manager of an independent auditor – legal entity.

3. Thus, considering that the aforementioned NBCPA 13 (R2) altered the operating model of said Examination, creating a specific test for acting in entities regulated by this Agency, and the various questions received regarding this Superintendence's understanding of the effective date of this new certification, it became necessary to provide the clarifications below.

4. Initially, it is worth recalling the provision of Article 30 of ICVM 308/99, which determines that the Technical Qualification Examination will be carried out with a view to qualifying the independent auditor for the exercise of the activity of auditing financial statements for all entities included in the securities market.
   It also determines that the technical qualification examination will be applied by the CFC jointly with IBRACON or by an institution indicated by the CVM, in the manner to be defined in a specific act.

5. Therefore, we have in the present case that the exam is applied by the CFC, in the manner defined by it, with the CVM being responsible for requesting the presentation of the approval certificate for the granting of registration.

6. In turn, NBCPA 13 (R2), in its item 3, letter “b”, instituted the specific test for acting in entities regulated by the Securities and Exchange Commission (CVM). That is, from the entry into force of NBCPA 13 (R2) (on January 1, 2016), the Technical Qualification Examination – “CVM” became the necessary technical qualification examination for registration with this Agency.

SECURITIES AND EXCHANGE COMMISSION OF BRAZIL
Rua Sete de Setembro, 111/2-5th and 23-34th Floors – Center – Rio de Janeiro - RJ – ZIP: 20050-901 – Brazil Tel.: (21) 3554-8686 - www.cvm.gov.br

7. However, we recognize that due to the time lapse between the date of entry into force of the cited standard (January 1 of the past year) and the date of the first exam to be held in August of the coming year, some professionals could be prevented from obtaining their registration as independent auditors within the scope of the securities market. Thus, it is our understanding that those accountants who have already been approved in the “General” Technical Qualification Examination, but who have not yet requested registration with the CVM, may use the “General” approval certificate, as the document required by art. 30 of ICVM No. 308/99, until the first Technical Qualification Examination – CVM is held. Immediately after the holding of the first specific test (CVM), provided for in the aforementioned letter “b”, item 3, of NBCPA 13 (R2), the approval certificate in the General Technical Qualification Examination will no longer be accepted, being automatically replaced by the approval certificate in the Technical Qualification Examination – CVM.

8. Additionally, it is worth clarifying that approval in a technical qualification examination (whether the General or the specific “CVM”, under the conditions described above) constitutes only one of the necessary requirements for registration with the CVM, that is, being active in the National Registry of Independent Auditors (CNAI), maintained by the Federal Council of Accounting, does not guarantee, by itself, compliance with this requirement, given that many professionals included in the CNAI were not approved in the Technical Qualification Examination, but migrated from the CVM registry when it was created.

9. Finally, we inform that doubts related to registration and acting within the scope of the securities market can be resolved through the phones (21) 3554-8397 or 3554-8615, or by e-mail: gna@cvm.gov.br.

Sincerely,

Signed original by
MADSON DE GUSMÃO VASCONCELOS
Audit Standards Manager

Signed original by
JOSÉ CARLOS BEZERRA DA SILVA
Superintendent of Accounting and Audit Standards