CVM Circular Letter CVM/SIN 01/2022

SECURITIES AND EXCHANGE COMMISSION OF BRAZIL
Rua Sete de Setembro, 111/2-5th and 23-34th Floors - Center - Rio de Janeiro - RJ - CEP: 20050-901 - Brazil Tel.: (21) 3554-8686 - www.cvm.gov.br CIRCULAR LETTER/CVM/SIN/No. 1/2022 Rio de Janeiro, March 9, 2022

To investment fund administrator institutions (“FI”) regulated by CVM Instruction No. 555

Subject: Guidance to FI administrators regarding compliance with redemption payment deadlines set forth in the fund’s regulations and regulations

Dear Sirs,

1. CVM Instruction No. 555 establishes, pursuant to its Article 37, III, that “the redemption payment must be made by check, credit to a checking account, or payment order, within the period established in the regulations, which cannot exceed 5 (five) business days, counted from the date of share conversion,” except in the case of funds dedicated to professional or qualified investors, for whom the regulations grant greater freedom in stipulating these conditions.

2. In this context, this technical area interprets the “payment” of the redemption as the moment when the financial resources are effectively placed at the disposal of the unit holder, and thus, it does not coincide with earlier moments in the processing of the operation, such as, for example, the settlement of the redemption by the fund.

3. In a hypothetical example, if a requested redemption is settled by the fund on 12/2/2021, but the resources are placed at the unit holder’s disposal by a method that does not allow them to access such resources on the same day (for example, a payment order issued after banking hours), for all purposes, the redemption payment date shall be considered to be 12/3/2021.

4. Similarly, if the unit holder is required to physically appear at a bank branch or equivalent distribution point to receive the redemption (whether because they do not have a registered bank account available to receive the redemption, or for security reasons or any other lawful reason), and this notice is provided after banking hours, the redemption may likewise only be considered paid on the next business day.

5. As a conclusion of the above, we clarify at this time that the maximum five (5) business-day period provided for in Article 37, III, cited above, must also be computed, for the verification of its compliance, for the period elapsed between the settlement of the redemption by the fund and the actual availability of the resulting resources to the investor.

6. In the same sense, when providing for the redemption payment period in the fund’s regulations, the administrator must ensure that this indicated period can be met even in circumstances such as those brought above by way of example, under penalty of incurring the daily fine provided for in Article 37, V, of CVM Instruction No. 555.

Sincerely,

Digitally signed by
DANIEL WALTER MAEDA BERNARDO
Superintendent of Institutional Investor Supervision