2019-08-07
Added · Updated
Entities authorized to operate in B3 markets opting for the RLP Offer Modality must implement an opt-in mechanism for retail clients to use RLP offers. Intermediaries are prohibited from acting as counterparties for clients who have not made a prior and express declaration. Opt-out options must remain available to adhered investors. Intermediaries must verify client suitability and retain supporting documentation for a minimum of five years. These changes entered into force on August 5, 2019.
CVM published 2 documents in the last 30 days — get each new one by email the day it lands.
07/08/2019 SEI/CVM - 0814924 - Circular Letter https://sei.cvm.gov.br/sei/controlador.php?acao=documento_imprimir_web&acao_origem=arvore_visualizar&id_documento=863701&infra_sistema=100000… 1/2 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 Rua Cincinato Braga, 340/2nd, 3rd and 4th Floors, Bela Vista, São Paulo/ SP – ZIP: 01333-010 – Brazil - Tel.: (11) 2146-2000 SCN Q.02 – Bl. A – Ed. Corporate Financial Center, 4th Floor, S.404, Brasília/DF – ZIP: 70712-900 – Brazil - Tel.: (61) 3327-2030/2031 www.cvm.gov.br Circular Letter No. 1/2019-CVM/SMI Rio de Janeiro, August 7, 2019.
To
Entities authorized to operate in the B3 markets – BM&FBOVESPA segment - that opted to use the new RLP Offer Modality
Subject: Conditions for use of the New Retail Liquidity Provider (RLP) Offer Type.
Dear Sirs,
a) the option to be a counterparty to an RLP offer must be available to retail clients exclusively in the form of an opt-in mechanism, whereby the client, through prior and express declaration, manifests their agreement with the system of using the offer in question;
b) the need for prior and express declaration applies to both new clients (at the time of account opening or subsequent adherence to the aforementioned service) and already registered clients, with the favorable declaration not being a condition for opening, maintaining the account or providing securities brokerage services, including those authorized for trading through RLP offers;
07/08/2019 SEI/CVM - 0814924 - Circular Letter https://sei.cvm.gov.br/sei/controlador.php?acao=documento_imprimir_web&acao_origem=arvore_visualizar&id_documento=863701&infra_sistema=100000… 2/2
c) intermediaries are prohibited from acting as counterparties in an RLP offer for clients who have not manifested their use of the service, as mentioned;
d) the opt-out option must always be available to investors who have expressly and previously adhered to the RLP product.
It is also necessary to inform that, as provided in CVM Instruction No. 539 of November 13, 2013, intermediaries must pay special attention to their obligations to verify the suitability of clients for products, services, and operations that include RLP offers, considering the client's investment objectives, financial situation, and the knowledge necessary to understand the risks related to operations with the securities in question.
The supporting documentation regarding the observance of the obligations mentioned in paragraphs “2” and “3” above must be kept for a minimum period of 5 (five) years, as provided in art. 36 of CVM Instruction No. 505, of September 27, 2011 and in art. 10 of CVM Instruction No. 539 of November 13, 2013.
Sincerely,
Francisco José Bastos Santos
Superintendent of Market Relations and Intermediaries (SMI)
Document electronically signed by Francisco José Bastos Santos, Superintendent, on 07/08/2019, at 11:51, 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 informing the verification code 0814924 and the CRC code FE5CAE7B.
This document's authenticity can be verified by accessing https://sei.cvm.gov.br/conferir_autenticidade, and typing the "Verification Code" 0814924 and the "CRC Code" FE5CAE7B.
Reference: Process No. 19957.002097/2016-90 SEI Document No. 0814924
Read the rest free
Source: Comissão de Valores Mobiliários — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
More like this from CVM
CVM published 2 documents in the last 30 days. We email you each new one the day it's published.