Circular No. 2.594

CIRCULAR N. 002594 ------------------ Regulates the constitution and operation of financial investment funds and of funds for investment in shares of investment funds. The Board of Directors of the Central Bank of Brazil, in view of the provisions of art. 1, sole paragraph, of the Regulation annexed to Resolution No. 1.088, of 30.01.86, added by art. 1 of Resolution No. 1.728, of 10.07.90, in art. 13 of Resolution No. 1.962, of 27.08.92, and in art. 1 of Resolution No. 2.183, of 21.07.95, D E C I D E D: Art. 1 Approve the annexed regulation, which governs the constitution and operation of financial investment funds and of funds for investment in shares of investment funds. Art. 2 Establish: I - that, in the prohibition on carrying out repurchase transactions with individuals and non-financial legal entities, provided for in art. 1 of Circular No. 1.890, of 01.02.91, commitments assumed with financial investment funds are not included; II - in addition to the provision contained in art. 12, sole paragraph, of Resolution No. 1.962, of 27.08.92, the faculty of negotiation by financial investment funds, in the form of the regulations in force, of mercantile contracts for the purchase and sale of products, goods and/or services for future delivery or provision and securities or certificates representing such contracts. Art. 3 This Circular enters into force on the date of its publication, producing effects as of 01.08.95. Brasília, 21 July 1995 Cláudio Ness Mauch Director of Norms and Organization of the Financial System REGULATION ANNEXED TO CIRCULAR NO. 2.594, OF 21.07.95, WHICH GOVERNS THE CONSTITUTION AND OPERATION OF FINANCIAL INVESTMENT FUNDS AND OF FUNDS FOR INVESTMENT IN SHARES OF INVESTMENT FUNDS. CHAPTER I Of the Constitution and Characteristics Art. 1 The financial investment fund, constituted in the form of an open condominium, is a communion of resources destined for investment in a diversified portfolio of financial assets and other operational modalities available within the financial market, observing the limitations provided for in this regulation and in the regulations in force. Sole paragraph. The fund has an indefinite term of duration and its denomination, which cannot contain terms incompatible with its objective, must include the expression "Financial Investment", with the addition of word(s) that identify(ies) the profile of its investments being permitted in the event of directing a preponderant portion of its resources to specific segment(s). Art. 2 The constitution of the fund, within 5 (five) days counted from its occurrence, must be the subject of written communication to the Regional Office of the Central Bank of Brazil to which the administering institution is subject, in which must be stated: I - the date of constitution of the fund; II - the designation of a statutory member of the administration of the administering institution, technically qualified, to answer, civilly and criminally, for the management, supervision
and monitoring of the fund, as well as for the provision of information related thereto. Sole paragraph. The communication referred to in this article must be accompanied by a declaration signed by the administrator designated by the administering institution that: I - is aware of its obligations towards the fund; II - is responsible, primarily, under the terms of the legislation in force, including before third parties, for the occurrence of situations that indicate fraud, negligence, imprudence or incompetence in the administration of the fund, and is also subject to the application of penalties of suspension or disqualification for positions of direction in financial institutions and other institutions authorized to operate by the Central Bank of Brazil. Art. 3 The document of constitution must reproduce the entire text of the fund's regulation, contain the qualification of its founders, be registered in a registry of titles and documents and remain at the disposal of the Central Bank of Brazil at the headquarters of the administering institution. Sole paragraph. The Central Bank of Brazil may determine alterations in the fund's regulation. Art. 4 The fund's regulation must contain, at a minimum, the following information: I - administration fee or criterion for its fixing, observing the provisions of art. 12; II - other fees and/or expenses; III - investment policy, in order to characterize the segment in which the fund must preponderantly act; IV - conditions for issuance and redemption of shares; V - fixing of the interval for updating the value of the share for purposes of redemption of shares with yield, due to the provisions of art. 20; VI - criteria for disclosure of information to the condominium owners, under the terms of Chapter IX; VII - reference, when applicable, to the delegation of powers of administration of the fund's portfolio, with identification and qualification of the legal entity to which such powers are delegated. Sole paragraph. In defining the investment policy, information must be provided about: I - the general characteristics of the fund's performance, among which the criteria for composition and diversification of the portfolio and the operational risks involved; II - the possibility of carrying out investments that put the fund's assets at risk. Art. 5 The fees, expenses and terms adopted by the fund must be identical for all condominium owners. CHAPTER II Of the Administration Art. 6 The administration of the fund may be exercised by a multiple bank, commercial bank, savings bank, investment bank, credit, financing and investment company, securities brokerage company or securities distribution company. Paragraph 1 It is a condition for the administration of the fund the accreditation of the administering institution in the Central Bank Information System - SISBACEN. Paragraph 2. The administering institution that does not have the accreditation referred to in the previous paragraph must obtain it from the
Central Bank of Brazil/Department of Information Technology (DEINF), in Brasília (DF), or from the Regional Office of the Central Bank of Brazil to which it is subject. Paragraph 3. The administration of the fund by a brokerage firm or a distribution firm is permitted to those that meet the minimum limits of paid-in capital and net equity established in the regulations in force for the exercise of that activity. Art. 7. The administering institution, observing the limitations of this regulation, has the powers to perform all acts necessary for the administration of the fund and to exercise the rights inherent to the financial assets and operational modalities that make up its portfolio, including the right to act and to attend and vote at general or special meetings. Art. 8. The obligations of the administering institution include: I - to keep, updated and in perfect order: a) the documentation related to the fund's operations; b) the register of the co-owners; c) the book of minutes of general meetings; d) the attendance book of co-owners; e) the opinions of the independent auditor; f) the record of all accounting facts related to the fund; II - to receive any income or amounts of the fund; III - to make available to the co-owner, free of charge, a copy of the fund's regulation, as well as to inform them of the name of the periodical used for providing information and the administration fee charged; IV - to disclose, daily, in the periodical referred to in item III, in addition to keeping available at its headquarters and branches and at the institutions that place quotas of the fund, the value of the fund's net equity, the value of the quota and the accumulated returns in the month and in the calendar year to which they refer; V - to bear the expenses of advertising the fund; VI - to provide annually to the co-owners a document containing information on the income earned in the calendar year and, based on the data relating to the last day of the month of December, on the number of quotas of their ownership and their respective value. Paragraph 1. The disclosure of the information provided for in item IV may be arranged through class entities of institutions of the National Financial System, provided that it is carried out in widely circulated periodicals, observing the responsibility of the administrator designated under the terms of art. 2, item II, for the regularity in the provision of such information. Paragraph 2. In exceptional cases, duly justified before the Central Bank of Brazil, the disclosure of the information provided for in item IV may be arranged in a form and at a frequency different from those provided therein. Art. 9. The administering institution may, observing the provisions of art. 39, sole paragraph, by deliberation of the general meeting of co-owners: I - contract consulting services from specialized companies, aiming at the analysis and selection of financial assets and operational modalities to integrate the fund's
portfolio; II - delegate powers to administer the fund's portfolio to duly identified third parties, without prejudice to its responsibility and that of the administrator designated under the terms of art. 2, item II. Sole paragraph. The administration powers referred to in item II may only be delegated to legal entities, whether or not members of the National Financial System. Art. 10. The administering institution is prohibited, in the specific exercise of its functions and/or using the fund's resources: I - to grant loans, advances or credits under any other modality; II - to provide surety, guarantee, acceptance or co-obligate itself in any other form, except when dealing with margin guarantees in operations carried out in derivatives markets; III - to carry out operations and negotiate with financial assets and/or operational modalities outside the scope of the financial market or expressly prohibited in the regulations in force; IV - to invest resources directly abroad; V - to acquire quotas of the fund itself; VI - to pay or reimburse itself for fines imposed due to non-compliance with the rules provided for in this regulation; VII - to sell fund quotas in installments; VIII - to promise predetermined returns to the co-owners; IX - to make, in its advertising or in other documents presented to investors, promises of withdrawals or returns, based on its own performance, the performance of others or that of financial assets and/or operational modalities available within the financial market; X - to delegate powers to administer the fund, except as provided in art. 9, item II. Art. 11. The administering institution, by means of a notice published in the periodical referred to in art. 8, item III, or by means of a letter with acknowledgment of receipt or telegram with delivery notification addressed to each co-owner, may resign from the administration of the fund, provided that it convenes, in the same act, a general meeting to decide on its replacement or on the liquidation of the fund, observing the provisions of art. 23. Sole paragraph. In the cases of replacement of the administering institution and liquidation of the fund, the rules in force on civil or criminal liability of administrators, directors and managers of financial institutions shall apply, as applicable, regardless of those governing the civil liability of the administering institution itself. Art. 12. The administering institution must stipulate remuneration to be received for the provision of the fund's administration service. Sole paragraph. The administration fee charged by the fund's administering institution may only be increased by decision of the general meeting of co-owners. CHAPTER III Of the Portfolio Art. 13. The fund's investments must be represented by: I - deposit at the Central Bank of Brazil, in the form of specific regulations; II - financial assets and/or operational modalities available within the financial market, except shares, promissory notes issued by
corporations, intended for public offering, Economic Development Securities (TDE), quotas of investment funds in the modalities regulated by the Securities Commission and quotas of the Social Development Fund - FDS. Paragraph 1 The financial assets comprising the fund's portfolio: I - must be duly registered, as the case may be, in the Special Settlement and Custody System (SELIC) or in a registration and financial settlement system administered by the Custody and Financial Settlement of Securities Center - CETIP; II - when physically issued, must be held in custody at a multiple bank with a commercial or investment portfolio, commercial bank, investment bank, stock exchange or entity authorized to provide such service by the Central Bank of Brazil or by the Securities Commission. Paragraph 2 Excepted from the provisions of paragraph 1, item I, are the fund's investments in quotas of investment funds, in variable income securities and in gold. Paragraph 3 The fund's investments in gold are only permitted when acquired on commodity and futures exchanges. Paragraph 4 The fund's investments in "warrants" and in mercantile contracts for the purchase and sale of products, merchandise and/or services for future delivery or provision and securities or certificates representing such contracts must: I - without prejudice to compliance with the provisions of paragraph 1, have a guarantee from a financial institution or insurance company, observing, in the latter case, specific regulations of the Superintendence of Private Insurance - SUSEP; II - be restricted to those issued or guaranteed by bodies or entities other than those referred to in art. 1 of Resolution No. 2.008, of 28.07.93. Paragraph 5 The fund's operations in derivative markets may be carried out both in those administered by stock exchanges or commodity and futures exchanges, and in the over-the-counter market, in this case provided they are duly registered with CETIP. Paragraph 6 With respect to the financial assets and/or operational modalities comprising the fund's portfolio: I - the total issuance of a single State or Municipality, of a single investment fund or of a single non-financial legal entity or natural person, of its controller, of companies directly or indirectly controlled by it and of its affiliates under common control cannot exceed 10% (ten percent) of the fund's net equity; II - the total issuance and/or co-obligation of a single financial institution, of its controller, of companies directly or indirectly controlled by it and of its affiliates under common control may exceed the percentage referred to in item I, provided that the fund's regulation, in the part pertaining to the investment policy, provides for the possibility of such concentration. Paragraph 7 Exceptionally, up to 10% (ten percent) of the fund's net equity may be represented by shares received as a result of the conversion of debentures. Paragraph 8 The percentages referred to in this article must be
complied with daily, based on the fund's net equity of the immediately preceding business day. CHAPTER IV Of the Net Equity Art. 14. The fund's net equity is understood as the algebraic sum of the available funds with the value of the portfolio, plus amounts receivable, minus liabilities. Sole paragraph. For the purpose of determining the value of the portfolio, the rules and procedures provided for in the Accounting Plan for Institutions of the National Financial System - COSIF must be observed. CHAPTER V Of the Issuance, Placement and Redemption of Quotas Art. 15. The fund's quotas must be registered, non-transferable and held in deposit accounts in the name of their holders. Paragraph 1 The transfer of fund quotas is permitted only in the event of execution of a guarantee eventually provided through their use. Paragraph 2 The status of co-owner is characterized by the investor's written adherence to the fund's regulation and by the opening of a deposit account in their name. Art. 16. The fund's quotas may be placed by multiple bank, commercial bank, savings bank, investment bank, credit, financing and investment company, securities brokerage company and securities distribution company. Art. 17. The fund's quotas must have their value calculated daily, based on a patrimonial valuation that considers the market value of the financial assets comprising the portfolio, in accordance with the provisions of art. 14 and the rules and procedures provided for in COSIF. Art. 18. The application and redemption of fund quotas may be made in cash, check, payment order, debit and credit in current account or credit order document. Sole paragraph. In exceptional cases, after prior consultation with the Central Bank of Brazil, redemption may be made in financial assets comprising the fund's portfolio. Art. 19. In the issuance of fund quotas, the value of the quota in effect on the day of effective availability of the resources entrusted by the investor to the administering institution, at its headquarters or branches, must be used. Sole paragraph. For the calculation of the number of quotas to which the investor is entitled, the fees and/or agreed expenses must be deducted from the amount delivered to the administering institution. Art. 20. For redemption purposes, the fund's quotas must have their value updated at minimum intervals of 30 (thirty) days counted from the respective issuance date, as provided in its regulation. Paragraph 1 The occurrence of redemption on a date prior to the date of the first update of the quota value is permitted, provided it is at the value in effect on the date of the respective issue or on the day of the redemption, whichever is lower. Paragraph 2 From the first update of the quota value, when effecting redemption on a day that does not correspond to the date of update of its value, the quota value in effect on the date of the last update or on the day of the redemption must be used, whichever is lower. Paragraph 3 When the
date of update of the quota value occurs on a non-business day, the redemption must be effected at the value in effect on the first subsequent business day. Paragraph 4 The fund's regulation must provide for the effecting of redemption of quotas on state or municipal holidays in the location where the administering institution is headquartered. Art. 21. The redemption of quotas must be effected, without charging any fee and/or unforeseen expense, by the 5th (fifth) business day following the respective request, as provided in the fund's regulation. CHAPTER VI Of the General Assembly Art. 22. It is the exclusive competence of the general assembly of quota holders: I - to annually, within a maximum period of 4 (four) months after the end of the fiscal year, approve the accounts of the fund and deliberate on its financial statements; II - to amend the fund's regulation; III - to deliberate on the replacement of the administering institution; IV - to deliberate on the increase of the administration fee charged by the administering institution; V - to deliberate on transformation, incorporation, merger, spin-off or liquidation of the fund; Sole paragraph. The fund's regulation, as a result of legal or regulatory norms, may be amended independently of holding a general assembly, in which case the fact must be disclosed to the quota holders within a maximum period of 30 (thirty) days. Art. 23. The convening of the general assembly must be made by means of an announcement published in the periodical referred to in art. 8, item III, or by means of a letter with acknowledgment of receipt or telegram with delivery notification addressed to each quota holder, which must contain the day, time and place of the assembly and the matters to be dealt with. Paragraph 1 The convening of the general assembly must be made with at least 8 (eight) days' notice, counting from the date of publication of the first announcement or the sending of the letter or telegram to the quota holders. Paragraph 2 In the cases of art. 22, items III to V, if the general assembly is not held, a new announcement of second call must be published or the sending to the quota holders of a letter with acknowledgment of receipt or telegram with delivery notification must again be arranged, with a minimum advance notice of 5 (five) days. Paragraph 3 Except in cases of force majeure, the general assembly must be held at the place where the administering institution has its headquarters; when held elsewhere, the announcements or letters or telegrams addressed to the quota holders must clearly indicate the place of the meeting, which in no case may be held outside the locality of the headquarters. Paragraph 4 Regardless of the formalities provided for in this article, the general assembly attended by all quota holders must be considered regular. Art. 24. In addition to the annual account-rendering meeting, the general assembly may meet upon convening by the administering institution or by quota
holders representing at least 30% (thirty percent) of the total. Art. 25. At the general assembly, which shall be installed with the presence of at least one quota holder, deliberations must be taken by the criterion of absolute majority of quotas of quota holders present, with each quota corresponding to one vote. Paragraph 1 Deliberations must be taken by majority of quotas of quota holders present at the general assembly, even in the cases of art. 22, items III to V, when the quorum of absolute majority of quotas issued is not reached in a conclave held on first call. Paragraph 2 In deliberations taken at a general assembly regarding the cases of art. 22, items III to V, the absolute majority must be computed in relation to the total quotas issued. Paragraph 3 The legal representatives of the quota holders are qualified to attend the general assembly. CHAPTER VII Of the Financial Statements Art. 26. The fund must have accounting bookkeeping separate from that of the administering institution. Art. 27. The fund's fiscal year begins on April 1 of each year and ends on March 31 of the following year. Art. 28. The fund is subject to the procedures for bookkeeping, preparation, submission and publication of financial statements provided for in COSIF. Paragraph 1 In the event of a null balance in all accounting accounts, the preparation, submission and publication of the fund's financial statements are waived, and the administering institution must arrange, in writing, to communicate the fact to the Regional Office of the Central Bank of Brazil to which it is subject. Paragraph 2 Failure to comply with the deadlines set for submission of financial statements to the Central Bank of Brazil subjects the administering institution and the administrator designated under the terms of art. 2, item II, to the sanctions provided for in the legislation and regulations in force. Paragraph 3 The fund's annual financial statements must be audited by an independent auditor registered with the Securities and Exchange Commission of Brazil. CHAPTER VIII On the Provision of Information to the Central Bank Art. 29. The managing institution must provide to the Central Bank of Brazil/Department of Registration and Information (DECAD), via SISBACEN transaction PMSG750, by the first business day following the start of the fund's activities, the following information: I - name and registration number in the General Taxpayers' Register (CGC), of its own and of the fund; II - date of the start of the fund's activities; III - name of the administrator designated under the terms of art. 2, item II; IV - name, address and registration number in the CGC of the legal entity to which powers of administration of the fund's portfolio are delegated, when applicable; V - name, registration number in the Individual Taxpayers' Register (CPF) and telephone number of the persons responsible for providing information about the fund; VI - name and registration number in the CGC of the
financial institution holding the "Bank Reserves" account, for the purposes of the transactions provided for in this regulation. Sole paragraph. Any changes in the information provided for in this article must also be communicated to the Central Bank of Brazil/DECAD, via SISBACEN transaction PMSG750, by the first business day following the date of the respective occurrence. Art. 30. The managing institution must provide to the Central Bank of Brazil/Department of Special Studies and Monitoring of the Financial System (DEASF), via a SISBACEN transaction to be disclosed in due course, with a delay of up to 3 (three) business days from the date to which they refer, the following daily information relating to the fund: I - balances of investments; II - value of net equity; III - value of the quota; IV - total amounts of subscriptions and redemptions on the day, considering the amounts effectively received and withdrawn; V - positions held in derivative markets. Paragraph 1 The information provided for in this article: I - is due per business day, including, for this purpose, any state or municipal holidays; II - must be provided even if all amounts are zero. Paragraph 2 The Central Bank of Brazil/DEASF must specify the form and frequency of providing the information provided for in items I and V. Art. 31. The provision of the information provided for in this Chapter, or its alteration, outside the established deadlines implies for the managing institution: I - the need to formally request the Central Bank of Brazil/DECAD or DEASF, as the case may be, via SISBACEN transaction PMSG750, for the regularization of the information; II - payment of a fine per business day elapsed without the respective regularization, which fine: a) corresponds to R$150.00 (one hundred and fifty reais); b) is to be automatically debited from the "Bank Reserves" account of the infringing institution or of the convening financial institution, subject to the following: 1. in the case of provision of information outside the established deadline, it must be debited daily, from the business day following the occurrence of the irregularity, until its regularization; 2. in the case of provision of information with inaccuracy, it must be applied on the business day following the rectification of the information provided with inaccuracy, its amount calculated based on the period of occurrence of the irregularity. Paragraph 1 With a view to enabling the provisions of this article, the managing institution not holding a "Bank Reserves" account must enter into an agreement under the terms provided for in Circular No. 2,425, of 15.06.94. Paragraph 2 The convening financial institution must notify the Central Bank of Brazil/DECAD of the agreement, via SISBACEN transaction PMSG750, observing the deadline referred to in art. 29. Art. 32. The Central Bank of Brazil/DEASF may request the managing institution to provide other information about the fund. CHAPTER IX On Advertising and Sending
Documents Art. 33. The managing institution is obliged to disclose, widely and immediately, any relevant act or fact relating to the fund, in order to guarantee all co-owners access to information that may, directly or indirectly, influence their decisions regarding their permanence in it. Paragraph 1 The disclosure of the information provided for in this article must be made by publication in the periodical referred to in art. 8, item III, and kept available to the co-owners at the headquarters and branches of the managing institution and at the institutions that place quotas of the fund. Paragraph 2 The managing institution must make the publications provided for in this regulation always in the same periodical and any change must be preceded by notice to the co-owners. Art. 34. The managing institution must, within a maximum period of 10 (ten) days after the end of each month, make available to the co-owners, at its headquarters and branches and at the institutions that place quotas of the fund, the information provided for in art. 35, based on data relating to the last day of the month to which they refer. Art. 35. The managing institution must send to each co-owner, annually, based on data relating to the last day of March, a document containing information about the number of quotas owned by them and their respective value, as well as the fund's profitability in the fiscal year. Sole paragraph. The sending of the information provided for in this article is not mandatory to co-owners: I - holding quotas whose total value is less than R$500.00 (five hundred reais); II - whose last sending of information was returned due to inaccuracy in the declared address and who have not proceeded to update it. Art. 36. The managing institution must publish, annually, based on data relating to the last day of March, a document containing the fund's financial statements, provided for in COSIF, and its profitability in the last 3 (three) fiscal years, always taking complete fiscal years as the basis. Art. 37. The measures provided for in arts. 35 and 36 must be adopted within a maximum period of 60 (sixty) days after the closing of the fiscal year to which they refer. CHAPTER X General Rules Art. 38. The financial assets and operational modalities comprising the fund's portfolio may not be subject to lease, loan, pledge or surety, except when used as margin guarantee in operations carried out in derivative markets. Art. 39. In addition to the remuneration for services provided for in art. 12, the following expenses constitute charges of the fund, which may be debited by the administering institution: I - federal, state, municipal or autarchic taxes, fees or contributions that fall or may fall upon the fund's assets, rights and obligations; II - expenses with printing, dispatch and publication of reports, forms and periodic information, provided for in the fund's regulation or pertinent regulation; III - expenses with correspondence of interest to the fund,
including communications to the quotaholders; IV - fees and expenses of the auditor in charge of reviewing the fund's financial statements and accounts and analyzing its situation and the performance of the administering institution; V - emoluments and commissions paid on the fund's operations; VI - attorneys' fees, costs and related expenses incurred in defense of the fund's interests, in or out of court, including the amount of the judgment, should the fund be defeated; VII - any expenses inherent to the constitution or liquidation of the fund or to the holding of a general meeting of quotaholders; VIII - custody fees for the fund's securities. Sole paragraph. Expenses arising from consultancy services regarding the analysis and selection of assets and modalities to integrate the fund's portfolio, those arising from the delegation of powers to administer said portfolio, as well as any others not provided for as charges of the fund, must be borne by the administering institution. Art. 40. Within a maximum period of 5 (five) days counted from their occurrence, the following acts relating to the fund must be communicated in writing to the Regional Office of the Central Bank of Brazil to which the administering institution is subject, accompanied by the corresponding documents: I - amendment of regulation; II - replacement of the administering institution; III - merger; IV - incorporation; V - spin-off; VI - liquidation. Sole paragraph. In the case of an amendment to the regulation, the corresponding document must be made available to the Central Bank of Brazil at the headquarters of the administering institution. Art. 41. Non-compliance with the rules established in this regulation subjects the administering institution and the administrator designated under the terms of art. 2, item II, to the sanctions provided for in the legislation and regulations in force, and the Central Bank of Brazil may also determine the convening of a general meeting of quotaholders to decide on one of the following alternatives: I - transfer of the fund's administration to another institution; II - liquidation of the fund. Sole paragraph. Non-compliance with the rules established in Chapters III, V and VIII may result, without prejudice to the application of other sanctions, in the summary disqualification of the institution as administrator of the fund. CHAPTER XI Short-Term Financial Investment Fund Art. 42. The institutions referred to in art. 6 are permitted to constitute and administer a fund that allows redemption of quotas at any time with yield, regardless of the provisions of art. 20. Sole paragraph. The constitution and operation of the fund referred to in this article, designated short-term financial investment fund, are subject, where applicable, to the rules established in this regulation, observing the following: I - its name must include the expression "Financial Investment - Short Term", and it may add word(s) that identify(ies) the profile of its
investments in the event of directing a preponderant portion of its resources to specific segment(s); II - its investments must be represented by: a) deposit in the Central Bank of Brazil, in the form of specific regulation; b) financial assets and operational modalities permitted to financial investment funds; III - the redemption of its quotas must be effected, as provided in the fund's regulation, on the same day or on the first business day following its request, using the value of the quota in force on the respective payment date. CHAPTER XII Investment Fund in Quotas of Investment Funds Art. 43. The institutions referred to in art. 6 may constitute and administer an investment fund whose resources must be destined exclusively to the acquisition of quotas of financial investment funds and of investment funds abroad. Paragraph 1 The constitution and operation of the fund referred to in this article, designated as a fund for investment in shares of investment funds, are subject, where applicable, to the rules established in this regulation, observing the following: I - its name must include the expression "Investment in Shares of Investment Funds", with the option to add word(s) that identify, when applicable, its short-term characteristic and/or the profile of its investments, in the case of directing a predominant portion of its resources to specific fund(s); II - its portfolio must be composed entirely of shares of investment funds, and the acquisition of shares of financial investment funds by a short-term fund for investment in shares of investment funds is prohibited; III - the information provided for in art. 30, relating to it, is limited to the values of net equity and of the share, based on the last day of the month to which they refer, in addition to the total values of subscriptions and redemptions accumulated in the month, and must be provided to the Central Bank of Brazil, via a SISBACEN transaction to be disclosed in due course, by the third business day after the end of each month. Paragraph 2 In the event of delay or inaccuracy in providing the information provided for in item III, the fine referred to in art. 31, item II, applies to the administering institution. CHAPTER XIII Of the Financial Investment Fund - State and/or Municipal Debt Art. 44. Administering institutions of liquidity funds of state and/or municipal public debt may constitute and administer a financial investment fund - state and/or municipal debt, governed, where applicable, by the rules established in this regulation, observing the following: I - its investments must be represented by: a) securities issued by the corresponding State(s) and/or Municipality(s); b) repurchase operations carried out with the administering institution, provided they have as their object the same securities referred to in subitem "a"; II - only the treasuries of the State itself and its Municipalities and the autarchies, public companies, mixed-capital companies, and foundations
linked to or controlled or maintained by them may invest resources in the fund; III - the redemption of its shares must be effected independently of the provisions of art. 20, as provided in the fund's regulation, on the same day or on the first business day following its request, using the value of the share in effect on the respective payment date. Paragraph 1 The administering institution is responsible for verifying compliance with the condition provided for in item II, and the respective documentation must be kept available to the Central Bank of Brazil. Paragraph 2 Each official state financial conglomerate may constitute and administer only one financial investment fund - state and/or municipal debt. NOTE - Reissued due to inaccuracies verified in art. 13, paragraph 2, art. 22, item V, art. 30, "caput" and art. 44, paragraph 2