CVM Instruction 142 (Revoked) - Privatization Fund with DFA/Juiced Credits

Provides for the constitution, administration, and operation of Privatization Funds capitalized with conversion rights of credits subject to agreements for restructuring of Brazilian external debt - “Depositary Facility Agreement (DFA)”, with resources deposited with the Central Bank of Brazil, corresponding to accrued interest of non-financial companies, as provided in Article 2 of Decree No. 99,463/90, and with rights regarding obligations, deposits, and bonuses referred to in CMN Resolution No. 1,810, of March 27, 1991.

The PRESIDENT OF THE SECURITIES COMMISSION makes public that the Collegiate Body, in a session held on this date, and based on the provisions of item I of Article 8 of Law No. 6,385, of December 7, 1976, and CMN Resolution No. 1,810, of March 27, 1991,

HAS RESOLVED:

CHAPTER I
On Constitution and Characteristics

Art. 1 The Privatization Fund, constituted in the form of a closed condominium, in which individuals or legal entities residing, domiciled, or headquartered abroad, funds, or other foreign collective investment entities participate, constitutes a pooling of resources destined for the acquisition of securities issued by companies that are to be privatized in accordance with Law No. 8,031, of April 12, 1990.

Art. 2 The Fund shall adopt the name Privatization Fund - DFA/Accrued Interest and may have its capital fully paid with:
I) conversion rights of credits subject to agreements for restructuring of Brazilian external debt - “Depositary Facility Agreement (DFA)”; II) resources deposited with the Central Bank of Brazil corresponding to accrued interest of non-financial companies, as provided in Article 2 of Decree No. 99,463/90; and III) rights regarding obligations, deposits, and bonuses referred to in CMN Resolution No. 1,810/91.

§1 The Fund may, by decision of the General Quotaholders' Assembly, take the form of an open condominium after 24 (twenty-four) months from the date of commencement of its operations, maintaining the minimum period of 12 (twelve) years for the retention of resources in the country.

§2 If the General Quotaholders' Assembly decides on the open condominium form, the Fund may transform into a Foreign Capital Conversion Fund, becoming governed by CVM Instruction No. 91, of December 6, 1988, including regarding the composition and diversification of its portfolio.

Art. 3 The constitution of the Privatization Fund - DFA/Accrued Interest, as well as the following acts regarding the Fund, shall depend on prior authorization from the Securities Commission:
I - amendment of the bylaws;
II - appointment and replacement of the director responsible for the administration of the Fund; III - replacement of the administering institution; IV - transformation; V - merger; VI - incorporation; VII - spin-off; VIII - liquidation; IX - contracts entered into with intermediary agents.

§1 The Central Bank of Brazil shall be notified by the Securities Commission of the Fund's authorization and in the cases provided for in items II, III, and IX of this article.

§2 The request for authorization to constitute the Fund shall be accompanied by:
I - a resolution of the administering institution regarding the constitution of the Fund, containing the full text of its bylaws, which, after authorization, shall be registered in the Registry of Titles and Documents Office; II - information regarding the accreditation of intermediary agents.

§3 The Fund's bylaws shall provide for:
I - investment policy to be adopted by the administering institution, assets that may compose the Fund's portfolio, and diversification policy; II - duration period, which shall not be less than 24 (twenty-four) months; III - management fees for obtaining conversion rights and/or accrued interest, or criteria for their fixation, remuneration of the fiduciary agent, when applicable, and other expenses and charges of the Fund; IV - remuneration of administrators; V - retention period of resources in the country, which shall not be less than 12 (twelve) years; VI - quota value for subscription and redemption purposes; VII - settlement period for each investment, through quota redemption, which may be differentiated based on the percentage of the redemption value relative to the Fund's assets.

CHAPTER II
On Administration

Art. 4 The administration of the Privatization Fund - DFA/Accrued Interest shall be exercised exclusively by a multiple bank with an investment portfolio, investment bank, brokerage firm, securities distribution company, or other equivalent entities, authorized by the Securities Commission to practice the activity provided for in Article 23 of Law No. 6,385, of December 7, 1976.

Sole paragraph. The administration of the Fund shall be under the direct supervision and responsibility of the director of the administering institution.

Art. 5 The administering institution may, with six months' prior notice, via letter, telex, or telegram addressed to each quotaholder, renounce the administration of the Fund, being obliged, in the same act, to notify its intention to the Securities Commission.

Art. 6 The Securities Commission, in the exercise of its legal powers, may decertify the administering institution if it fails to comply with current regulations.

§1 The decertification process shall begin with notification from the Securities Commission to the administering institution, indicating the facts supporting it and the deadline for presenting a defense, which shall not be less than 15 (fifteen) days from the date of receipt of the notification issued by the Commission.

§2 The Securities Commission's decision to decertify the administering institution must be reasoned, with an appeal to the National Monetary Council, without suspensive effect, within 15 (fifteen) days from the date of receipt of the communication issued by the Commission.

Art. 7 The Central Bank of Brazil and/or the Federal Revenue Department may request the Securities Commission to decertify the administering institution that violates current regulations within their respective competencies, including those related to the registration of foreign capital or payment of income tax due on the remittance of earnings.

Art. 8 In cases of resignation and decertification, the administering institution is obliged to immediately convene the General Assembly to elect its successor or deliberate the incorporation of the Fund into another Privatization Fund - DFA/Accrued Interest.

Sole paragraph. The administering institution shall remain in the exercise of its functions until its effective replacement.

Art. 9 The administering institution shall have the power to exercise all rights inherent to the securities comprising the Privatization Fund - DFA/Accrued Interest portfolio, including the right to sue and to attend and vote in general or special assemblies, and may likewise open and operate bank accounts, freely acquire and alienate securities, settle disputes, and perform all acts necessary for the administration of the portfolio, observing the limitations of this Instruction.

Sole paragraph. Custodian institutions of the Fund's securities may only comply with orders signed by the legal representative(s) or attorney(s) of the administering institution, duly accredited for this purpose.

Art. 10 The administering institution's obligations include:
I - maintaining, at its own expense, updated and in perfect order:
a) quotaholders' records and transfer records; b) minutes book of general assemblies; c) quotaholders' attendance book; d) auditors' opinions archive; e) accounting records regarding the Fund's operations and assets; f) documentation related to the Fund's operations. II – receiving dividends, bonuses, and any other earnings or values from the Fund; III - exercising or alienating subscription rights for shares and other securities; IV - employing the diligence required by the circumstances in defending quotaholders' rights, performing necessary acts to ensure them, including lawsuits, appeals, and exceptions; V - covering the Fund's advertising expenses.

CHAPTER III
ON THE GENERAL ASSEMBLY

Art. 11 It is exclusively within the competence of the General Quotaholders' Assembly:
I - to annually review accounts related to the Fund and deliberate on financial statements presented by the administering institution; II - to amend the Fund's bylaws; III - to deliberate on the replacement of the administering institution; IV - to deliberate on the transformation, merger, incorporation, spin-off, and eventual liquidation of the Fund, observing the restriction established in item II of §3 of Article 3; V - to deliberate on changes to the administering institution's remuneration rate, including regarding participation in the Fund's results.

VI - to authorize the administering institution to subcontract individuals or legal entities to provide technical consulting services, and in such cases, decide whether the payment for these services constitutes a charge on the Fund.

Sole paragraph. The Fund's bylaws may be amended without a General Assembly or consultation with quotaholders whenever such amendment results exclusively from the need to comply with requirements of the Securities Commission, due to legal or regulatory norms, provided that the necessary communication to quotaholders is provided within 30 (thirty) days, in the periodicals designated for the dissemination of information regarding the Fund, when applicable.

Art. 12 The General Assembly shall be convened by issuing a letter, telex, or telegram to all quotaholders registered in the “Quotaholders Register” at least 15 (fifteen) days before the date set for its holding, including the day of the assembly in the calculation of the period and excluding the day of issuance of the convening instrument.

§1 If the assembly is not held, a second convening shall be made with a minimum advance notice of 5 (five) business days.

§2 The convening must include, obligatorily, the day, time, and location where the assembly will be held, and, even if briefly, the matters to be discussed.

§3 Regardless of the convening provided in this article, the General Assembly shall be considered regular if all quotaholders attend.

§4 The General Assembly may be convened by the administering institution or by quotaholders holding at least 5% (five percent) of the total quotas issued by the Fund.

Art. 13 In the General Quotaholders' Assembly, which may be installed with any number, decisions shall be taken by a majority of quotas of those present, with each quota corresponding to one vote, except as provided in §1 of this article and §3 of Article 14.

§1 Decisions regarding matters provided for in items III, IV, and V of Article 11 shall be taken, in the first convening, by a majority of issued quotas, and in the second convening, by a majority of quotas of the attending quotaholders.

§2 Only quotaholders registered in the “Quotaholders Register” 15 (fifteen) days before the date set for the assembly may vote.

Art. 14 Decisions of the General Assembly may be taken through a formal consultation process via letter, telex, or telegram addressed by the administering institution to each quotaholder for response within 30 (thirty) days.

§1 The consultation must contain all necessary informational elements for the exercise of voting rights.

§2 Failure to respond shall be considered as consent by the quotaholders, provided such interpretation is expressly authorized by the Fund's bylaws and stated in the consultation itself.

§3 The deliberation “quorum” shall be an absolute majority of issued quotas, regardless of the matter.

CHAPTER IV
On Accreditation of Intermediaries Abroad

Art. 15 The administering institution of the Privatization Fund - DFA/Accrued Interest may accredit intermediary agents, via contract, with the purpose of promoting management abroad to obtain credits eligible for conversion, aiming at subscription or acquisition of Fund quotas, and to perform services of promotion, dissemination, and representation of the Fund, and act as a fiduciary agent.

§1 Accredited agents must, as applicable, be qualified to operate and/or act as a fiduciary agent in the financial or capital markets of the country where they maintain their headquarters.

§2 Agency contracts shall only enter into force after being registered with the Securities Commission and the Central Bank of Brazil.

Art. 16 Agency contracts, as applicable, shall contain, at minimum, the following provisions:
I - reference to the Fund's bylaws, a copy of which shall be part of the contract; II - value of contracted credits, eligible for conversion in the National Privatization Program; III - management fees for obtaining credits eligible for conversion, borne by the investor; IV - commitment of the intermediary agent to:
a) provide, in the form of guidance received from the administering institution, all necessary elements for the conversion process at the Central Bank of Brazil; b) not subcontract the agency of management to obtain credits eligible for conversion, unless previously authorized by the administering institution; c) submit to the prior approval of the administering institution any advertising texts related to prospectuses and brochures, as well as periodic information; d) ensure the investor has full knowledge of the regulatory provisions regarding the privatization process and the Fund's operation; e) expressly state, in the document provided to the investor, the net value to be applied in the subscription of Fund quotas; V - service fee regarding the promotion, dissemination, and representation of the Fund; VI - remuneration of the fiduciary agent.

CHAPTER V
On Net Equity

Art. 17 The Fund's net equity is understood as the sum of available funds plus the value of the portfolio, plus receivables, minus liabilities.

Sole paragraph. To determine the value of the portfolio, the criteria established by the Accounting Plan issued by the Securities Commission shall be observed.

CHAPTER VI
On Issuance and Placement of Quotas

Art. 18 Quotas of the Privatization Fund - DFA/Accrued Interest shall correspond to ideal fractions of its assets and shall take the form of book entries.

§1 Quotas shall be maintained in deposit accounts in the names of their holders.

§2 The quality of quotaholder shall be proven by the deposit account statements.

Art. 19 Deposit account statements shall constitute the document capable of proving the administering institution's obligation to comply with the contractual provisions contained in the Fund's bylaws and the norms of this Instruction.

Sole paragraph. Any restrictive or modifying clause of the obligation referred to in this article shall be deemed unwritten.

Art. 20 Deposit account statements shall prove the ownership of the number of quotas belonging to quotaholders, according to the Fund's records.

Sole paragraph. When the system of whole numbers of quotas is adopted, the residual value of reinvestments shall be maintained in a current account for future investments or, if requested, paid to the quotaholder in cash.

Art. 21 Quota issuance shall be carried out in accordance with the provisions of the Fund's bylaws, determining the quota value based on an asset evaluation performed in accordance with the Accounting Plan issued by the Securities Commission.

§1 Subscribed quotas shall be fully paid with the rights and resources mentioned in items I, II, and III of Article 2 of this Instruction, on the date of their effective blocking, and a 25% (twenty-five percent) discount shall apply to their face value.

§2 The quota value shall be calculated daily.

Art. 22 Quotas issued by the Fund shall be destined exclusively for subscription by individuals or legal entities residing, domiciled, or headquartered abroad, funds, or other collective investment entities constituted abroad.

CHAPTER VII
On Transferability and Negotiability of Quotas

Art. 23 Fund quotas may be traded abroad, respecting the requirements of CMN Resolution No. 1,460/88, and complementary norms, and only under this condition shall they be transferred via a capable document, which shall only produce effects against the Fund after being presented to the administering institution duly formalized.

§1 Upon presentation of the transfer request, the administering institution must effectuate it within a maximum period of 5 (five) business days, providing, in accordance with the Law, the alterations and registration with the Central Bank of Brazil.

§2 The administering institution may suspend quota transfer services for a period not exceeding 15 (fifteen) consecutive days, prior to the dates of distribution of results or holding of the General Assembly, with the suspension of these services during the year prohibited for more than 90 (ninety) days.

CHAPTER VIII
On Redemption of Quotas

Art. 24 Total or partial redemption of invested resources is permitted in the following cases:
I) before the period established in item II of §3 of Article 3 has elapsed, when transferring the investment to another Privatization Fund - DFA/Accrued Interest.
II) after the waiting period cited in item I:
a) in shares comprising the Fund's portfolio; b) in cash, for immediate application of resources in the acquisition of shares of companies included in the National Privatization Program.

§1 In the redemption request, the quotaholder must indicate the amount in cruzeiros or the number of quotas to be redeemed, the Fund to which they intend to transfer the corresponding resources, or the shares they intend to acquire.

§2 When the investment is transferred to another Fund, the originating administering institution must transfer the resources on the redemption date, via a payment order in favor of the receiving administering institution, which shall proceed with immediate subscription and capitalization of quotas.

§3 The administering institution of the Fund to which resources were transferred must, as soon as it receives them, notify the Securities Commission and the Central Bank of Brazil.

§4 In the case of redemption for application of resources in the purchase of shares provided for in item “b” of this article, the administering institution of the Fund must immediately notify the Securities Commission and the Central Bank of Brazil.

CHAPTER IX
On Registration of External Resources

Art. 25 Resources destined for the acquisition or subscription of quotas of the Privatization Fund - DFA/Accrued Interest, as well as the reinvestment of accumulated results with the counterpart of quota issuance, shall be subject to registration with the Central Bank of Brazil, for the purposes of controlling foreign capital and future remittances abroad of earnings, capital gains, and return of invested capital.

§1 To obtain registration, the administering institution must present a global list of investors, accompanied by individual forms, discriminating the value of the application or reinvestment of each.

§2 Each subscription or acquisition of Fund quotas shall correspond to a distinct investment registration in foreign currency in the name of the quotaholder.

§3 Registration shall be made in the name of the fiduciary agent, specially contracted for this purpose, provided the number of quotaholders exceeds 10 (ten), without prejudice to the presentation of the investor list provided for in §1 of this article.

§4 The reinvestment of accumulated Fund results, with the counterpart of quota issuance, shall be registered by the Central Bank of Brazil as reinvestment, in accordance with current legislation, and meeting current tax norms, thereby modifying the value and number of quotas in the registration.

§5 The list referred to in §1 shall be delivered via protocol, and investments shall be considered automatically registered, without prejudice to the administering institution's responsibility for the accuracy and propriety of the documents forwarded and information provided, which may be verified at any time by the Central Bank of Brazil, which, if necessary, shall adopt appropriate measures to regularize the registration and hold the administrator accountable.

§6 The administering institution, observing the condition mentioned in Article 23, shall request the Central Bank of Brazil to alter the foreign capital registration, exclusively for the change of the investor's name, or the fiduciary agent's name, within a maximum period of 10 (ten) business days, from the date of the effective transfer of quotas or substitution of the fiduciary agent, attaching, as applicable, the individual form corresponding to the new foreign investor or the list of foreign investors.

Art. 26 The Foreign Capital Registration Certificate, issued by the Central Bank of Brazil, is the capable instrument for effectuating the return of foreign capital and remittances abroad of results or capital gains obtained from the redemption of Fund quotas;

§1 Capital gain shall be considered the positive difference between the value, in foreign currency, of quota redemption and its value, in foreign currency, in the Registration Certificate (CR), which may be obtained using the formula:
GC = VRC - NCR (VCR/CCR) where:
GC = Capital Gain
VRC = Value of Quota Redemption
NCR = Number of Redeemed Quotas
VCR = Value of the CR
CCR = Quotas in the Registration

§2 If negative, the difference mentioned in §1 shall be considered a capital loss, to also be deducted from the registration.

§3 Remittances abroad shall be processed by the administering institution, through banks authorized to operate in foreign exchange, corresponding to each type of remittance, a distinct foreign exchange closing.

Art. 27. Upon remittances, the administrator institution must deliver to the intervening banks in foreign exchange operations the documents listed below, duly formalized and authenticated, so that, together with the fourth copy of the foreign exchange contracts, they are forwarded to the Central Bank of Brazil:

I - in the case of income:
a) financial statements, based on which distributions are being made; b) document authorizing its distribution; c) statement of the supplementary income tax; d) proof of payment of income tax and supplementary income tax, when applicable.

II - in cases of capital return and capital gain:
a) proof of redemption of quotas; b) statement of capital gain or loss, in accordance with paragraphs 1 and 2 of Article 26; c) proof of payment of income tax on capital gain.

Art. 28. The administrator institution must forward to the Central Bank of Brazil, within 30 (thirty) days, calculated from the effective date of the remittance, the following information and documents:

I - in the case of income:
a) total value remitted; b) detailed list, containing the names of the quota holders, the quantity of quotas held, the gross and net values of the income for each, indicating the value and number of the foreign capital registration.

II - in cases of capital return and capital gain:
a) statement evidencing the number of quotas redeemed, the acquisition and redemption values, and the respective capital gain or loss, in accordance with paragraphs 1 and 2 of Article 26; b) specification of the cancellations of the foreign capital registration.

Art. 29. Upon the execution of the transfers provided for in Article 27, the intervening banks will be responsible for verifying compliance, by the administrator institution and according to the nature of the remittance, with the provisions of this Regulation, and they must also strictly observe the regulations on financial remittances, including regarding the appropriate entries in the annexed sheets to the registration certificates.

CHAPTER X
Of the Composition and Diversification of the Portfolio

Art. 30. The Privatization Fund - DFA/Matured Interest must maintain its applied assets exclusively in:

I - shares of privatized companies in accordance with Law No. 8,031, of 04/12/1990; II - rights on medium and long-term external obligations registered with the Central Bank of Brazil, subject to agreements on the restructuring of Brazilian external debt, and respective charges; III - rights on deposits in foreign currency constituted at the Central Bank of Brazil under the auspices of agreements resulting from the restructuring of Brazilian external debt, and respective charges; IV - rights related to bonds resulting from agreements on the restructuring of Brazilian external debt, including those referred to in Decree No. 96,673, of September 12, 1998, and respective charges; and V - federal public debt securities.

CHAPTER XI
Of the Liquidation of the Investment

Art. 31. The resources corresponding to each investment will be subject to a minimum period of 12 (twelve) years of stay in the country, calculated from the date of its effective conversion, after which the value calculated upon the liquidation of the investment may be returned.

Art. 32. The liquidation of the investment will be carried out through the redemption of quotas, in accordance with the provisions of the Fund's regulation.

§1. The request for liquidation of the investment will be formulated by the investor to the administrator institution, at any time, after the period provided for in item II of paragraph 3 of Article 3 of this Instruction, directly or through the intermediary agent.

§2. The liquidation of the investment will be carried out in cash, within the maximum period established in the Fund's regulation, calculated from the date of receipt of the redemption request by the administrator institution.

CHAPTER XII
Of the Financial Statements

Art. 33. The Fund will have its own accounting records, distinct from those of the administrator institution, and must prepare a trial balance at the end of each month and semi-annual balance sheets.

Art. 34. The Fund's financial statements will be subject to the accounting standards issued by the Securities and Exchange Commission (CVM), and will be audited by an independent auditor registered with them.

Sole paragraph. The Accounting Plan issued by the Securities and Exchange Commission (CVM) will encompass all standards for the evaluation of assets comprising the Fund, as well as for the appropriation of revenues and expenses inherent to securities, observing, where applicable, the guidance of the Central Bank of Brazil.

CHAPTER XIII
Of Fiscal Treatment

Art. 35. The Privatization Fund - DFA/Matured Interest will be subject to the norms and rates of income tax established in the legislation of this tax.

CHAPTER XIV
Of Prohibitions

Art. 36. It is prohibited for the administrator institution, in the name of the Fund:

I - to receive deposits in a current account;
II - to contract or execute loans, under any modality; III - to provide surety, guarantee, acceptance, or co-obligate in any other form; IV - to acquire or sell, outside the stock exchange of Stock Exchanges, shares of open companies registered for trading on the Exchange, except, regarding acquisition, the cases of auctions of the National Privatization Program, subscriptions, and bonuses; V - to promise predetermined returns to quota holders.

Art. 37. It is prohibited for the administrator institution:

I - to sell Fund quotas on installment;
II - to delegate powers to manage and administer the Fund, except with specific authorization from the Securities and Exchange Commission (CVM).

Art. 38. The values comprising the Fund's portfolio cannot be subject to leasing, lending, pledge, or surety, except in cases expressly authorized by the Central Bank of Brazil or by the Securities and Exchange Commission (CVM), within their respective areas of competence.

Art. 39. The Fund cannot have cash in its assets.

§1. The resources resulting from the sale of shares must be used in the acquisition of securities issued by the Federal Government to be determined by the Central Bank of Brazil.

§2. These securities will be repurchased by the Central Bank of Brazil when the Fund needs cash to pay for shares acquired in auctions of the National Privatization Program, to pay dividends to its quota holders, and to pay the Fund's expenses provided for in this Instruction, including the remuneration due to the administrator institution.

CHAPTER XV
Of the Fund's Charges

Art. 40. The Fund's charges will consist, in addition to the remuneration referred to in item IV of Paragraph 3 of Article 3 of this Instruction, of the following expenses, which may be charged to the Fund by the administrator institution:

I - taxes, federal, state, municipal, or autonomous taxes or contributions, which fall or may fall on the assets, rights, or obligations of the Fund; II - expenses with printing, dispatch, and publication of reports and financial statements, forms, and periodic information, provided for in this Instruction or in relevant regulation; III - correspondence expenses of interest to the Fund, including communications to quota holders; IV - fees and expenses of the auditors responsible for reviewing the Fund's financial statements and analyzing its situation and the performance of the administrator institution; V - emoluments and commissions paid for the Fund's purchase and sale operations of securities; VI - lawyers' fees, costs, and related expenses incurred due to the defense of the Fund's interests, in court or out of court, including the value of the judgment, imputed to the Fund, if applicable; VII - a portion of eventual losses not covered by insurance policies and not resulting directly from the fault or negligence of the administrator institution in the exercise of its functions; VIII - insurance premiums, as well as any expenses related to the transfer of resources from the Fund between banks; IX - any expenses inherent to the constitution or liquidation of the Fund or the holding of a General Meeting of quota holders; X - custody fee for the Fund's securities; XI - fee for the Fund's dissemination and representation services due to intermediary agents, if applicable; XII - remuneration of the fiduciary agent, if applicable.

Sole paragraph. Other administrative and operational expenses, essential for the proper functioning of the Fund, may be attributed as a charge, provided they are provided for in an instrument previously approved by the Securities and Exchange Commission (CVM).

Art. 41. Promotion expenses to obtain, abroad, credits eligible for conversion will not be imputed as charges of the Fund.

CHAPTER XVI
Of Information

Art. 42. The administrator institution must send to the Securities and Exchange Commission (CVM), within a maximum period of 10 (ten) days after the end of the period to which they refer, without prejudice to others that may be required, the following documents regarding the Fund.

I - monthly:
a) trial balance; b) statements of the composition and diversification of applications; c) statement of sources and applications of resources;

II - semi-annually:
a) balance sheets; b) copies of the information provided to quota holders, allowing the dispatch, within a maximum period of 60 (sixty) days after the end of the period to which it refers, of the audit opinion on the financial statements relating to the semester; c) information regarding the general conditions of insurance coverage, in the case of transit of securities; d) list of institutions responsible for providing custody services for the securities comprising the portfolio; e) list of judicial or extrajudicial demands, whether in defense of the quota holders' rights or against the administration of the Fund, indicating the date of its start and the final solution.

Art. 43. The administrator institution must, semi-annually, within a maximum period of 10 (ten) days after the end of the period, publicly disclose, through a medium approved by the Securities and Exchange Commission (CVM), a statement of the composition and diversification of applications.

Art. 44. The administrator institution must provide, weekly, the value of the quota, the value and date of the last distribution, and the value of the Fund's net asset value to the Stock Exchange of the location of its headquarters, which must disclose this information.

Art. 45. The administrator institution must provide each quota holder, at least semi-annually, a document containing the following information:
a) number of quotas held and their value; b) return earned in the semester; c) value and composition of the portfolio, discriminating quantity, type, and quotation of the securities comprising it, the value of each application, and its percentage on the total value of the portfolio; d) balance sheets and other financial statements relating to the semester, accompanied by the opinion of the independent auditor. e) list of institutions responsible for providing custody services for the securities comprising the portfolio; f) remuneration of the administrator institution.

CHAPTER XVII
Of Final Provisions

Art. 46. The provisions of Chapter V of Law No. 4,595, of December 31, 1964, and Article 11 of Law No. 6,385, of December 07, 1976, apply to the administrator institution and its administrators and managers directly responsible for the administration of the Fund, regardless of other legal sanctions that may be applicable.

Art. 47. This Instruction will enter into force on the date of its publication in the Official Gazette of the Union.

Signed by
JOSÉ ARTHUR ESCODRO
Acting President