Circular Letter No. 6/2024/CVM/SIN

COMMISSION OF SECURITIES AND EXCHANGE COMMISSION 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 No. 6/2024/CVM/SIN
Rio de Janeiro, October 15, 2024

To administrators and managers of investment funds Subject: Interpretation of provisions of CVM Resolution No. 175

Dear Sirs,

This Circular Letter aims to disseminate additional interpretations by the Superintendency of Supervision of Institutional Investors (“SIN”) on other provisions of the general part of the Resolution, as well as on provisions of Annexes I, IV, and V. Thus, this Circular Letter complements Circular Letters No. 2 and 3/2024/CVM/SIN.

For better organization of the subjects, the clarifications will be made in thematic topics, with objective and direct points, for better understanding and guidance.

We also inform you that other Circular Letters will be disseminated opportune with clarifications on doubts related to the general part and to the Normative Annexes of the Resolution, and as the case may be, by the respective superintendency that is competent for the supervision of the categories of funds treated therein.

Sincerely,

Digitally signed by
MARCO ANTONIO VELLOSO DE SOUSA
Superintendent of Supervision of Institutional Investors

COMMISSION OF SECURITIES AND EXCHANGE COMMISSION 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

Additional guidance to that provided in Circular Letter No. 2/2024/CVM/SIN regarding the taxonomy of the sub-class code

1. We clarify that, unlike provided in the previous circular, the sub-class code was structured to contain 15 alphanumeric characters.

Additional guidance to that provided in Circular Letter No. 3/2024/CVM/SIN regarding the use of the Remuneration Summary within the scope of CVM Resolution No. 175

2. From November 1, 2024, the date on which the commands related to remuneration rates enter into force, essential service providers may opt for the segregation of investment fund fees in the regulations or for the use of the global fee.

3. When opting for the use of the global fee in the fund regulations, the manager will be responsible for making the remuneration summary available on their website in a public area and easily accessible to the investor.

4. Market participants must observe the self-regulation rules disseminated by ANBIMA regarding transparency in remuneration, especially with regard to filling guidelines and standards according to the model made available by the Association in order to guarantee the comparability of information.

5. The information in the summary must be updated whenever there are changes in existing agreements and/or the signing of new commercial agreements.

6. The asset manager will be responsible for updating the summary, and this must reflect the changes, if any, by the 5th (fifth) business day of the month following the change and/or signing of new commercial agreements.

7. The summary made available by the manager must contain, among other information: (i) the list, in alphabetical order, of all contracted distributors with their respective CNPJs; and (ii) the list of all existing commercial agreements between the manager and the currently contracted distributors, it not being necessary, at this time, to indicate in which commercial agreement the distributor is included.

8. Although, at this first moment, there is no need to indicate which commercial agreement the distributor is included in, as described in the item above, it is expected that in the future the transparency of remuneration will be carried out fully through a platform to be made available according to premises established between the regulator and the self-regulator.

9. The obligation to segregate the pension structuring fee in the regulations will take place from November 1, 2024, aligned with the date of entry into force of its segregation with the other fees (management, administration, and maximum distribution). Thus, from this date, the use of the “Remuneration Summary” for the pension structuring fee will also be optional.

Additional guidance to that provided in CVM Resolution 175 regarding ESG investment fund classes

10. The sole paragraph of article 49 of the General Part of CVM Resolution 175 provides that, if the investment policy integrates environmental, social, or governance factors into activities related to portfolio management, but does not seek to originate environmental, social, or governance benefits, the use of terms related to sustainable finance such as "green" in the fund regulations and the class descriptive annex is prohibited.

11. However, it is verified the existence of share classes that do not provide for the integration of ESG factors in their investment policy, but that use the word "green" or other terms that

COMMISSION OF SECURITIES AND EXCHANGE COMMISSION 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

contain reference to a location (examples: Monte Verde, Campo Verde, ArcoVerde), a proper name, or other meanings that do not have any objectives related to sustainable finance.

12. In this line, we clarify that it is regular to maintain the terms in the social denomination of the share classes provided that:

a. such terms do not confer understanding or direct correlation to investors regarding any ESG aspect.

b. the share class material does not contain any references, direct or indirect, to the adoption of practices that take into consideration ESG criteria;

c. no sales strategy is employed that induces investors to believe that it is a share class that seeks to originate or integrate environmental, social, or governance factors in its investment process.

13. The provision in Item 83 of Joint Circular Letter No. 1/2023/CVM/SIN/SSE is revoked.