Circular Letter CVM/SRE No. 671/2006: Public and Private Offering of Quotas of Regulated Funds Issued under CVM Instructions 209/94, 356/01, and 391/03

CIRCULAR LETTER/CVM/SRE/No. 671/2006
Rio de Janeiro, March 29, 2006
Subject: Public and Private Offering of Quotas of Regulated Funds Issued under CVM Instructions No. 209/94, 356/01, and 391/03

Responsible Director for FMIEE, FIDC, and FIP,

This Circular Letter aims to communicate to the administrators of emerging company investment funds (FMIEE), credit rights investment funds (FIDC), and participation investment funds (FIP) the change in criteria for granting registration for the operation of these funds, as per a decision by the Collegiate Body, available on the CVM's website.

In the meeting of 2/21/2006, the Collegiate Body of this Agency analyzed important points related to the discipline applicable to these funds, the public or private offering of their quotas, the trading of quotas in the secondary market, and their registration with this CVM.

Thus, based on the deliberations taken by the Collegiate Body, registration of operation will no longer be granted to funds that do not execute public offerings of distribution of their quotas, altering the interpretation and requirements that this Superintendence has formulated until then.

Therefore, it should be noted that the public offering of quota distribution must be registered, or an exemption from its registration obtained, in accordance with Articles 4 and 5 of CVM Instruction No. 400/03, for the registration of operation of the aforementioned funds to be granted.

It is also important to highlight that the request for exemption from registration of public offering of distribution, except in cases of automatic exemption under Article 5 of Instruction 400, results in the non-granting of automatic registration provided for in CVM Instructions No. 356/01 and 391/03.

Sincerely,

(signed original)

Carlos Alberto Rebello Sobrinho
Securities Registration Superintendent
FMF/