Circular No. 3261 — Dispenses on the application of resources collected from consortium groups, the leverage limit for consortium administrators, and the designation of a director responsible for providing information

CIRCULAR NO. 003261

Dispenses on the application of resources collected from consortium groups, the leverage limit for consortium administrators, and the designation of a director responsible for providing information.

The Collegiate Board of the Central Bank of Brazil, in a session held on October 26, 2004, having regard to the provisions of Article 10 of Law No. 7,691 of December 15, 1988, and Article 4, item "c", of Decree-Law No. 1,290 of December 3, 1973, and based on Articles 33 of Law No. 8,177 of March 1, 1991, and Article 2 of Resolution No. 2,092 of July 27, 1994,

DECIDED:

Art. 1 Consortium administrators may apply resources collected from consortium groups in short-term funds, referenced funds, and fixed-income funds, in accordance with Instruction 409 of August 18, 2004, of the Securities and Exchange Commission (CVM), prohibited from applying in investment funds:

I - whose activity in derivatives markets generates exposure greater than one times their respective net equity;

II - that receive applications of resources from the administrator itself.

§ 1 The applications of resources collected from consortium groups in the investment funds referred to in the caput originating from the same administrator may not exceed 20% (twenty percent) of the net equity of the respective fund.

§ 2 Consortium administrators whose groups possess, on the date of entry into force of this circular, applications in investment funds not permitted under this article, shall dispose of said applications by April 1, 2005.

Art. 2 Consortium administrators are subject to a leverage limit corresponding to the sum of the balances of their passive operations (accounting title Cosif 4.0.0.00.00-8) and the balance of liquidity available in the Statement of Changes in Liquidity of Consolidated Groups (document 7 of Cosif, Cadoc 4350, code 09.0.0.0.0-7), which may not exceed six times the value of the PLA (Net Worth of the Administrator).

§ 1 The leverage limit established in this article must be complied with daily.

§ 2 For the purpose of verifying compliance with the leverage limit established in this article, the following must be deducted:

I - from the balance of passive operations of the administrators, the value recorded in subtitle 4.9.8.93.20-9 - Pending Receipts - Judicial Collection;

II - from the balance of liquidity available in the Statement of Changes in Liquidity of Consolidated Groups (document 7 of Cosif, Cadoc 4350, code 09.0.0.0.0-7), the values related to selected consortium members who are invested in federal public securities, through repurchase agreements contracted with financial institutions or with the Central Bank of Brazil;

III - from the PLA of the administrators, the amount corresponding to any participations held in the share capital of companies that exercise the same activity.

§ 3 In the case of associations and non-profit civil entities authorized to administer consortium groups, the leverage limit must correspond to half of that established in this article, in accordance with the nature of the assets subject to the groups under their administration and the value of their social equity.

Art. 3 Consortium administrators must designate a director to answer for the provision of information pertinent to consortium activities to the Central Bank of Brazil.

Art. 4 Article 1 of Circular 2,454 of July 27, 1994, is amended, which shall henceforth read as follows:

"Art. 1 .............................................

§ 1 Consortium administrators may apply resources collected from groups in short-term funds, referenced funds, and fixed-income funds, in accordance with Instruction 409 of August 18, 2004, of the Securities and Exchange Commission, prohibited from applying in investment funds:

I - whose activity in derivatives markets generates exposure greater than one times their respective net equity;

II - that receive applications of resources from the administrator itself.

§ 2 The applications of resources collected from consortium groups in the investment funds referred to in § 1 originating from the same administrator may not exceed 20% (twenty percent) of the net equity of the respective fund." (NR)

Art. 5 Article 3 of Circular 2,861 of February 10, 1999, is amended, which shall henceforth read as follows:

"Art. 3 Consortium administrators are subject to a leverage limit corresponding to the sum of the balances of their passive operations (accounting title Cosif 4.0.0.00.00-8) and the balance of liquidity available in the Statement of Changes in Liquidity of Consolidated Groups (document 7 of Cosif, Cadoc 4350, code 09.0.0.0.0-7), which may not exceed six times the value of the PLA.

§ 1 The leverage limit established in this article must be complied with daily.

§ 2 For the purpose of verifying compliance with the leverage limit established in this article, the following must be deducted:

I - from the balance of passive operations of the administrators, the value recorded in subtitle 4.9.8.93.20-9 - Pending Receipts - Judicial Collection;

II - from the balance of liquidity available in the Statement of Changes in Liquidity of Consolidated Groups (document 7 of Cosif, Cadoc 4350, code 09.0.0.0.0-7), the values related to selected consortium members who are invested in federal public securities, through repurchase agreements contracted with financial institutions or with the Central Bank of Brazil;

III - from the PLA of the administrators, the amount corresponding to any participations held in the share capital of companies that exercise the same activity.

§ 3 In the case of associations and non-profit civil entities authorized to administer consortium groups, the leverage limit must correspond to half of that established in this article, in accordance with the nature of the assets subject to the groups under their administration and the value of their social equity.

§ 4 Revoked." (NR)

Art. 6 Article 33 of the Regulation annexed to Circular 2,766 of July 3, 1997, is amended, which shall henceforth read as follows:

"Art. 33. Consortium administrators must designate a director to answer for the provision of information pertinent to consortium activities to the Central Bank of Brazil.

................................................." (NR)

Art. 7 This circular enters into force on the date of its publication.

Art. 8 Circulars 3,167 of December 4, 2002, and 3,198 of August 6, 2003, are revoked.

Brasília, October 28, 2004.

Sérgio Darcy da Silva Alves
Director