RESOLUTION NO. 001791

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REPEALS THE DECISION THAT DETERMINES THE EXTINCTION OF FIXED-INCOME MUTUAL FUNDS AS OF MARCH 1, 1991 AND AUTHORIZES THE ESTABLISHMENT OF INVESTMENT FUNDS IN SHARES OF FINANCIAL INVESTMENT FUNDS.

THE CENTRAL BANK OF BRAZIL, IN THE FORM OF ART. 9 OF LAW NO. 4,595, OF DECEMBER 31, 1964, MAKES PUBLIC THAT THE PRESIDENT OF THE NATIONAL MONETARY COUNCIL, BY ACT OF FEBRUARY 26, 1991, BASED ON THE PROVISIONS OF PARAGRAPH 2 OF ART. 2 OF LAW NO. 8,056, OF JUNE 28, 1990, "AD REFERENDUM" OF THAT COUNCIL, AND IN VIEW OF THE PROVISIONS OF LAW NO. 4,728, OF JULY 14, 1965,

HAS RESOLVED:

ART. 1. TO REPEAL THE DECISION THAT DETERMINES THE EXTINCTION OF FIXED-INCOME MUTUAL FUNDS AS OF MARCH 1, 1991.

ART. 2. TO AUTHORIZE THE ESTABLISHMENT, AS WELL AS THE OPERATION AS OF MARCH 1, 1991, OF INVESTMENT FUNDS IN SHARES OF FINANCIAL INVESTMENT FUNDS.

ART. 3. TO AMEND, AS A CONSEQUENCE, ARTS. 1, 2 AND 6 OF RESOLUTION NO. 1,787, OF FEBRUARY 1, 1991, WHICH SHALL ENTER INTO FORCE WITH THE FOLLOWING WORDING:

"ART. 1. TO AUTHORIZE THE ESTABLISHMENT, AS WELL AS THE OPERATION AS OF MARCH 1, 1991, UNDER THE TERMS OF THE REGULATIONS TO BE ISSUED BY THE CENTRAL BANK OF BRAZIL, OF FINANCIAL INVESTMENT FUNDS, WHICH SHALL HAVE AS THEIR MAIN OBJECTIVE THE INVESTMENT OF RESOURCES IN A DIVERSIFIED PORTFOLIO OF FIXED-INCOME SECURITIES, AND OF INVESTMENT FUNDS IN SHARES OF FINANCIAL INVESTMENT FUNDS, WHICH SHALL HAVE AS THEIR EXCLUSIVE OBJECTIVE THE INVESTMENT OF RESOURCES IN SHARES OF FINANCIAL INVESTMENT FUNDS."

"ART. 2. SHORT-TERM INVESTMENT FUNDS IN OPERATION SHALL BE TRANSFORMED INTO THE FUNDS REFERRED TO IN THE PREVIOUS ARTICLE, MERGED INTO THEM OR LIQUIDATED, AND MAY NOT, IN THEIR CURRENT FORM, CARRY OUT OPERATIONS AS OF MARCH 1, 1991.

SOLE PARAGRAPH. THE MEASURES REFERRED TO IN THIS ARTICLE MAY BE CARRIED OUT INDEPENDENTLY OF A GENERAL MEETING, OBSERVING THE NEED FOR QUOTA HOLDERS TO BE INFORMED OF THE DECISION ADOPTED WITHIN 30 (THIRTY) DAYS."

"ART. 6. ITEM III OF RESOLUTION NO. 1,280, OF MARCH 20, 1987, IS REPEALED, AND, AS OF MARCH 1, 1991:

I - RESOLUTION NO. 1,199, OF OCTOBER 10, 1986, ITEM I OF RESOLUTION NO. 1,589, OF MARCH 29, 1989, AND ITEM I OF ART. 2 OF RESOLUTION NO. 1,765, OF OCTOBER 31, 1990;

II - CIRCULAR NO. 1,215, OF AUGUST 6, 1987, ITEMS "A" TO "C" OF ITEM 1 OF CIRCULAR NO. 1,411, OF DECEMBER 29, 1988, AND CIRCULARS NOS. 1,614, OF MARCH 22, 1990, 1,619, OF MARCH 23, 1990, 1,747, OF JUNE 5, 1990, AND 1,774, OF JULY 10, 1990; AND

III - CIRCULAR LETTERS NOS. 1,706, OF AUGUST 31, 1987, 1,879, OF JANUARY 4, 1989, AND 2,116, OF OCTOBER 9, 1990."

ART. 4. TO AUTHORIZE THE CENTRAL BANK OF BRAZIL TO ISSUE THE RULES AND ADOPT THE MEASURES IT DEEMS NECESSARY RELATING TO THE ESTABLISHMENT AND OPERATION OF FIXED-INCOME MUTUAL FUNDS.

ART. 5. THIS RESOLUTION ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION.

BRASÍLIA (DF), FEBRUARY 26, 1991.

IBRAHIM ERIS
PRESIDENT