CMN Resolution No. 4694 — Amends Resolution No. 2,907 of November 29, 2001, Regarding Credit Rights Investment Funds

The Central Bank of Brazil, pursuant to Article 9 of Law No. 4,595 of December 31, 1964, makes public that the National Monetary Council, in a session held on October 29, 2018, based on Article 4, item VI, of the aforementioned Law, Law No. 4,728 of July 14, 1965, Articles 7 and 23, item "a", of Law No. 6,099 of September 12, 1974, and Article 3, items I to IV, of Law No. 6,385 of December 7, 1976,

R E S O L V E S:

Art. 1. Resolution No. 2,907 of November 29, 2001, shall enter into force with the following alterations:

“Art. 1. ........................................................

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§ 1. The administration of the funds referred to in the main text may only be carried out by multiple banks, commercial banks, savings banks, investment banks, credit, financing and investment companies, securities brokerage firms, and securities distribution companies, provided they are registered as administrators of securities portfolios with the Securities and Exchange Commission (CVM), in accordance with current regulations.

§ 2. The regulation referred to in the main text must provide, at a minimum:

I - the possibility of applying resources to the fund only by qualified investors, considering the definition contained in the regulation issued by the Securities and Exchange Commission, except in cases expressly defined by this agency;

II - the situations that require the credit risk classification of the fund, or of the credit rights and the titles representing these rights, by a credit risk rating agency authorized by the Securities and Exchange Commission;

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“Art. 2. ........................................................

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IV - the selling institution, in the event of co-obligation or, in any way, retaining risk relative to the credits involved in the transaction, remains obligated to provide information to the Credit Information System (SCR), in accordance with current regulations; and

V - the fund administrator institution must provide information to the SCR regarding credits acquired without co-obligation or any other form of risk retention by the selling institution, in accordance with current regulations.

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Art. 2. Item VI of § 2 and § 3 of Art. 1 of Resolution No. 2,907 of 2001 are hereby repealed.

Art. 3. This Resolution enters into force on the date of its publication.

                               Ilan Goldfajn President of the Central Bank of Brazil