CVM Instruction 215 (Repealed) - Mutual Investment Funds in Stocks

Provides for the constitution, functioning, and administration of Mutual Investment Funds in Stocks, Free Portfolio Mutual Investment Funds in Stocks, and Funds of Investment in Quotas of Mutual Investment Funds in Stocks.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Body, in a session held on this date, and having in view the provisions of RESOLUTION NO. 1,787, of February 1, 1991, of the National Monetary Council, and Article 19 of LAW NO. 6,385, of December 7, 1976,

HAS RESOLVED:

TITLE I
GENERAL CONDITIONS

CHAPTER I
CONSTITUTION AND CHARACTERISTICS

Art. 1. This Instruction deals with Mutual Investment Funds in Stocks, hereinafter referred to as FMIA, Free Portfolio Mutual Investment Funds in Stocks, hereinafter referred to as FMIA-CL, and Mutual Investment Funds in Quotas of Mutual Investment Funds in Stocks, hereinafter referred to as FIQFMIA.

§1º The name of the Funds must include, as applicable, the expression "Mutual Investment Fund in Stocks" or "Mutual Investment Fund in Stocks - Free Portfolio" or "Mutual Investment Fund in Quotas of Mutual Investment Fund in Stocks," and it is not permitted that names or expressions be added to the Fund's name that could induce an incorrect interpretation regarding its objectives or investment policy.

§2º All Funds referred to in this Instruction, in the form of an open-ended condominium - when it allows for the redemption of quotas - or closed-ended - when it does not - are a communion of resources, destined for application in a portfolio of securities and financial assets, in the case of FMIA and FMIA-CL, or in quotas of FMIA and FMIA-CL in the case of FIQFMIA.

§3º Closed-ended Funds may be transformed into an open-ended condominium by decision of the absolute majority of issued quotas, in a General Assembly convened for this purpose, which will deliberate on the adaptation period to the new form, which may not exceed 90 (ninety) days.

§4º Funds may have a fixed or indefinite duration, as provided in the Bylaws (Article 3).

§5º No quota holder of a Fund regulated by this Instruction may hold more than 50% (fifty percent) of the quotas issued by the same.

Art. 2. Once the constitution of the Fund has been deliberated, the administrator will request authorization for its functioning from the Securities and Exchange Commission - CVM.

§1º The authorization request will be accompanied by the Fund's constitution document and will reproduce the full text of its bylaws, which, after authorization, will be registered in the Registry of Titles and Documents.

§2º In the case of a closed-ended fund, prior approval from the CVM for the distribution of quotas must also be requested (Article 22).

§3º Contracts for services provided by third parties and provided for in this Instruction must also be presented, where the parties must obligatorily declare that they know and accept without reservation all provisions contained in this Instruction.

Art. 3. The Fund's Bylaws must obligatorily provide for:

I - qualification of the Fund administrator and the portfolio administrator, when this activity is contracted with third parties; II - type, whether open-ended or closed-ended fund; III - duration period; IV - investment policy, observing § 2 of this article; V - entry or exit fee, or criteria for its determination; VI - administrator remuneration; VII - criteria for calculating the value of the quota; VIII - conditions for the redemption of quotas, in the case of open-ended funds, providing for the deadline for redemption settlement and transcribing the provisions of this Instruction dealing with fines and amounts due (Article 27);

IX - availability of information for quota holders, as established in Chapter VIII of this Title; X - possibility and prerequisites for new issuances, in the case of closed-ended funds; XI - nature of the Fund's expenses and charges; XII - competence of the General Assembly of quota holders, criteria and requirements for its convocation and deliberation, observing the provisions in Chapter IV of this Instruction.¹

§1º The fees, expenses, and deadlines will be equal for all quota holders and will appear in the information referred to in items III and IV of Article 34 of this Instruction.

§2º The investment policy to be adopted by the administrator must be detailed in the fund's bylaws, establishing, among other aspects:

I - the assets that may compose the Fund's portfolio and the maximum and minimum limits for application in each; II - the possibility or not of application in securities and financial assets issued by affiliated companies; III - the maximum percentage of the portfolio that may be applied in securities and assets of the same issuer.

§3º For the purposes of this Instruction, affiliated companies are understood to be those in which the Fund administrator or the portfolio administrator, their controllers, administrators, or respective spouses, partners, or relatives up to the second degree, participate directly or indirectly, individually or jointly, in a percentage greater than 10% (ten percent) of the share capital, or in which they hold an administrative position.

Art. 4. Relevant documentation regarding the following acts related to the Fund must be sent to the CVM for approval:

I - amendment of the bylaws;
II - replacement of the Fund administrator, or replacement of the portfolio administrator; III - transformation (Article 1, § 3); IV - merger;

V - incorporation;
VI - spin-off;
VII - liquidation;
VIII - issuance and distribution of closed-ended fund quotas.

Sole Paragraph. The acts provided for in items II and VIII must be submitted prior to their implementation; in the others, the corresponding documentation must be sent within a maximum period of 15 (fifteen) days, counted from its deliberation by the General Assembly of quota holders.

CHAPTER II
ADMINISTRATION

Art. 5. The administration of the Fund will be exercised by a natural or legal person authorized by the CVM for the professional exercise of portfolio administration, provided for in Article 23 of LAW NO. 6,385, of December 7, 1976.

Art. 6. The Fund administrator, observing legal limitations and those of this Instruction, will have powers to practice all acts necessary for the administration of the Fund's portfolio, especially the contracting of services for which they are not legally qualified, as well as to exercise all rights inherent to the assets that compose it.

§1º When the administration of the Fund is not exercised by a financial institution or an entity part of the distribution system, the administrator must contract an institution legally qualified to execute treasury services, such as:

I - opening and moving bank accounts in the name of the Fund; II - receipt of resources upon issuance or full payment of quotas, and payment upon redemption of quotas or liquidation of the Fund; III - receipt of dividends and any other earnings; IV - financial settlement of all operations of the Fund.

§2º Institutions contracted to execute services will be jointly liable with the Fund administrator for damages caused to quota holders.

§3º Orders to buy and sell quotas, assets, and financial securities will always be issued with precise identification of the Fund.

Art. 7. The administrator will fix, in the bylaws, the remuneration to be received for the provision of management and administration services of the Fund, and it may even be provided for a remuneration fee based on the Fund's results, provided that the criteria for its assessment and payment conditions are explicit.

Sole Paragraph. In the case of open-ended funds, the remuneration fee must be allocated among quota holders daily.

Art. 8. The administrator may, by prior notice published in the periodical(s) referred to in item III, letter "d," of Article 34, or by means of a letter, telex, or telegram addressed to each quota holder, resign from the administration of the Fund, and must immediately communicate this fact to the CVM.

Sole Paragraph. In the case of Funds with quotas traded on stock exchanges or organized over-the-counter markets, the same disclosure required for relevant events must be adopted by the respective entities and by the administrator.

Art. 9. The Securities and Exchange Commission, in the exercise of its legal powers, may decertify the administrator who fails to comply with current regulations.

§1º The decertification process will begin with notification of the administrator by the CVM, indicating the facts that justified it and the deadline for presenting a defense, which shall not be less than 15 (fifteen) days, counted from the date of receipt of the notification.

§2º The CVM's decision to decertify the administrator will be reasoned, with an appeal to the National Monetary Council, without suspensive effect, within a period of 15 (fifteen) days, counted from the date of receipt of the communication by the administrator.

Art. 10. In the cases of resignation and decertification, the administrator will be obliged to immediately convene the General Assembly to elect a substitute or deliberate the liquidation of the Fund.

Sole Paragraph. The administrator must remain in the exercise of their functions until their effective substitution, which must occur within a maximum period of 90 (ninety) days, after which they must convene a General Assembly to deliberate the liquidation of the Fund.

CHAPTER III
OBLIGATIONS OF THE FUND ADMINISTRATOR

Art. 11. The following are included among the obligations of the administrator:

I - to ensure that, at their expense, the following are kept updated and in perfect order:

a) - records of quota holders and transfers of quotas; b) - the minutes book of general assemblies; c) - the attendance book of quota holders; d) - the archive of auditors' reports; e) - accounting records related to the Fund's operations and assets; f) - documentation related to the Fund's operations, for a period of five years.

II - to receive dividends, bonuses, and any other earnings or values from the Fund, observing the provision in § 1 of Article 6; III - to exercise or alienate subscription rights for shares and other financial assets; IV - to employ, in the defense of quota holders' rights, the diligence required by the circumstances, practicing all acts necessary to ensure them, such as lawsuits, appeals, and exceptions; V - to cover the Fund's advertising expenses; VI - to keep deposited in a commercial bank, a multiple bank with an investment portfolio, an investment bank, a stock exchange, or a custody entity authorized by the CVM, the securities and financial assets comprising the Fund; VII - payment of coercive fines, in accordance with current legislation, for each day of delay in complying with the deadlines provided for in Article 36 of this Instruction; VIII - to prepare, semi-annually, a report on the Fund's operations and results, to be sent with the financial statements, and which must contain, among other necessary information and comments, a declaration that the provisions of this Instruction and the Fund's Bylaws were observed.

Sole Paragraph. Custody contracts for securities and financial assets comprising the investment portfolio of Funds regulated by this Instruction must contain a clause that:

I - stipulates that only orders signed by the administrator or their legal representative(s) or duly accredited agent(s) may be accepted by the custodian institution; and II - prohibits the custodian from executing orders that are not directly linked to the portfolio administration operations of the Fund.

CHAPTER IV
GENERAL ASSEMBLY

Art. 12. It is exclusively the competence of the General Assembly of quota holders:

I - to take, annually, the accounts related to the Fund and deliberate on the financial statements presented by the administrator; II - to amend the Fund's Bylaws; III - to deliberate on the replacement of the administrator; IV - to deliberate on the transformation, merger, incorporation, spin-off, or eventual liquidation of the Fund; V - to deliberate on the issuance of new quotas in the closed-ended fund; VI - to deliberate on changes in the administrator's remuneration fee, including regarding participation in the Fund's results; VII - to deliberate on quota amortization, in the case of closed-ended funds.

§1º The Fund's Bylaws may be amended, independently of the General Assembly or consultation with quota holders, whenever such amendment results exclusively from the need to meet an express requirement of the CVM, as a consequence of legal or regulatory norms.

§2º When applicable, the amendment referred to in the previous paragraph will be communicated to quota holders, through the periodicals destined for the disclosure of Fund information, within a period of 30 (thirty) days.

Art. 13. The convocation of the General Assembly will be made through public announcement in the periodical(s) destined for the disclosure of Fund information or by registered mail, sent to each of the quota holders.

§1º The convocation must obligatorily include the day, time, and location where the assembly will be held, and also, in a summary manner, the matters to be addressed.

§2º The first convocation of the General Assembly must be made at least 8 (eight) days in advance, counted from the date of publication of the first announcement.

§3º In the cases provided for in items III, IV, and VI of Article 12, if a second convocation is necessary, it must be made 5 (five) days in advance.

§4º Regardless of the convocation provided for in this article, the General Assembly will be considered regular if all quota holders attend.

§5º The General Assembly may be convened by the administrator or by quota holders who hold at least 5% (five percent) of the total quotas issued by the Fund.

Art. 14. Deliberations in the General Assembly, which may be installed with any number, will be taken by the criterion of the majority of quotas of those present, with each quota corresponding to one vote, except for the provisions in §§ 1 and 2 of this article and Article 15, § 3.

§1º Deliberations regarding the matters provided for in Article 12, items III, IV, and VI, will be taken, in the first convocation, by the majority of issued quotas, and in the second convocation, by the majority of quotas of those present.

§2º In the case of closed-ended funds, the matters provided for in Article 12, items III, IV, VI, and VII, and, unless already provided for in the Bylaws, the issuance of new quotas (Article 12, item V), must be approved by the absolute majority of issued quotas.

Art. 15. Deliberations of the General Assembly may be taken through a formalized consultation process by letter, telex, or telegram, directed by the administrator to each quota holder, for response within a maximum period of 30 (thirty) days.

§1º The consultation must contain all necessary informational elements for the exercise of the right to vote.

§2º The absence of response will be considered as consent by the quota holders, provided that such interpretation is expressly authorized by the Fund's Bylaws and appears in the consultation itself.

§3º When the procedure provided for in this article is used, the deliberation "quorum" will be the absolute majority of issued quotas, regardless of the matter.

Art. 16. Only quota holders registered in the Quota Holder Register or in the deposit account, as applicable, up to 3 (three) business days before the date fixed for its holding, may vote in the General Assembly.

Art. 17. Representatives of quota holders, or their attorneys-in-fact, legally constituted for less than 1 (one) year, will have standing to attend the General Assembly or to vote in the deliberation process by consultation.

CHAPTER V
ISSUANCE, PLACEMENT, NEGOTIABILITY, AND REDEMPTION OF QUOTAS

Art. 18. The quotas of the Funds will correspond to ideal fractions of their assets and will assume a registered form.

§1º The quotas may be represented by Investment Certificates or kept in deposit accounts in the name of their holders, as established by the Fund's Bylaws.

§2º The ownership of registered quotas is presumed by the registration of the quota holder's name in the Register of Registered Quotas or by the deposit account of the quotas, opened in the name of the quota holder.

§3º The value of the Fund's quotas will be calculated daily.

Art. 19. The Investment Certificate, when adopted, will contain:

I - the denomination "INVESTMENT CERTIFICATE"; II - the name of the Fund and its registration number in the General Register of Taxpayers of the Ministry of Finance; III - the following information about the administrator:

a) - name or corporate name and address; b) - reference to the authorization of the Securities and Exchange Commission (Article 2); c) - registration number in the taxpayer register of the Ministry of Finance.

IV - name or corporate name of the quota holder;

V - certificate serial number;
VI - quantity of quotas represented by it;
VII - place and date of issuance;
VIII - authorized signature of the administrator or the director responsible for the administering institution, when applicable, with mechanical stamp allowed.

Art. 20. The Investment Certificate or the deposit account statement will represent an integer and/or fractional number of quotas belonging to the quota holder, according to the Fund's records.

§1º When the system of integer quota numbers is adopted, the residual value of investments or reinvestments will be kept in a current account for future investments or, if requested, will be paid to the quota holder in cash.

§2º For the calculation of the number of quotas, the commission or entry fee in effect at the time of the investment, as well as other expenses stipulated in the Bylaws, will be deducted from the value delivered to the administrator.

Art. 21. The quotas of the Funds may only be placed with the public through a multiple bank with an investment portfolio, an investment bank, a brokerage firm, or a distribution company, observing the formalities required by the CVM.

Art. 22. For the primary distribution of quotas of funds, the following must be sent to the CVM for prior approval:

I - distribution contract with the institution responsible for the distribution of quotas, if the distribution is not effected by the administrator, observing the provision in Article 21; II - Fund disclosure material to be used during the distribution; III - information to the CVM regarding the maximum and minimum number of quotas to be distributed, issuance value, and other relevant information about the distribution.

§1º The placement of closed-ended fund quotas will be preceded by an announcement of the start of distribution, previously approved by the Commission, published in the periodical(s) referred to in Article 34, item III, letter "d," of this Instruction, which must contain the information necessary for the investor's decision.

§2º The quotas of closed-ended funds may only be traded on stock exchanges or organized over-the-counter markets.

Art. 23. The full payment of the value of the Fund's quotas must always be in national currency, and the investment proposal or the receipt provided to the investor must expressly state the value of the resources delivered to the administrator or the qualified institution, specifying the form of payment.

Art. 24. The quotas of the Funds may be subject to assignment and transfer, observing the formalities provided for in the Fund's Bylaws.

Art. 25. For the purposes of exercising the right of redemption by the quota holder, the quotas of the open-ended fund may be subject to a waiting period, which will be identical for any quota or quota holder, and this period will be counted from the date of quota issuance, and such restriction must appear prominently in the bylaws.

Art. 26. Redemption will be effected in cash, check, credit to a current account, or payment order, without charging any fee or expense, except for the exit fee when provided for in the Bylaws, as provided for in item V of Article 3.

Sole Paragraph. In special cases, after preliminary consultation with the CVM, redemption may be effected in securities or financial assets, or in a period different from that provided for in Article 27.

Art. 27. The maximum limit for the payment of redemption of quotas of Funds constituted in the form of an open-ended condominium will be one business day subsequent to the longest period stipulated for settlement in an organized market of securities and financial assets authorized by the CVM, counted from the receipt of the request at the headquarters or branch of the financial institution responsible for the service.

Sole Paragraph. An increase of 20% (twenty percent) to the redemption value will be paid to the quota holder by the fund administrator, if the period established according to the "caput" of this article is exceeded.

Art. 28. In closed-ended funds, there will be no redemption of quotas, except by the end of the duration period or due to its liquidation, or by quota amortization, if provided for in the Bylaws.

CHAPTER VI
CHARGES OF THE FUNDS

Art. 29. In addition to the remuneration referred to in Article 7, the following expenses, which may be debited by the administrator, will constitute charges of the Funds:

I - taxes, levies, or contributions, federal, state, municipal, or autonomous, that fall or may fall on the assets, rights, and obligations of the Fund;

II - expenses with printing, mailing, and publication of reports, forms, and periodicals, provided for in this Instruction or in pertinent regulation; III - expenses with correspondence of interest to the Fund, including communications to quota holders; IV - fees and expenses of the auditors in charge of the examination, carried out in accordance with auditing standards, of the Fund's financial statements and the analysis of its situation and the administrator's performance, including regarding the investment policy fixed in the statutes; V - emoluments and commissions paid for operations of buying and selling securities and financial assets of the Fund; VI - lawyers' fees, court 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 condemnation, imputed to the Fund, if applicable; VII - portion of eventual losses not covered by insurance policies and not resulting directly from the administrator's fault or negligence in the exercise of their functions; VIII - insurance premiums, as well as any expenses related to the transfer of resources from the Fund between banks; IX - annual contribution due to stock exchanges, in the case of closed-ended funds, whose quotas are admitted to trading in this market segment; X - custody fee for securities and financial assets of the Fund.

Sole Paragraph. Any expenses not provided for, as charges of the Fund, will be borne by the administrator.

CHAPTER VII
FINANCIAL STATEMENTS AND AUDIT REPORTS

Art. 30. The Fund will have its own accounting bookkeeping.

Art. 31. The Fund's financial statements will be subject to accounting standards issued by the CVM and will be audited, semi-annually, by an independent auditor registered with the CVM.

Sole Paragraph. The financial statements will be published within 60 (sixty) days after the end of the semester or calendar year to which they refer, in the periodicals destined for disclosure.

information relating to the Fund, or made available to any interested party who requests them from the administrator, such option being defined in the Bylaws.

CHAPTER VIII
OF THE INFORMATION

Art. 32. A copy of the Fund's Bylaws referred to in article 3 of this Instruction shall be provided free of charge to the investor.

Sole paragraph. The Fund administrator is obliged to keep proof of forwarding the Fund's Bylaws, to be done within a maximum period of 10 (ten) days after the first investment.

Art. 33. The Fund administrator is obliged to disclose, broadly and immediately, any act or relevant fact pertaining to it, in order to guarantee all quota holders access to information that may, directly or indirectly, influence their decisions regarding staying in the Fund and other investors regarding the acquisition of quotas.

Art. 34. The Fund administrator shall:

I - provide, for disclosure to the market, daily, the quota value and the net asset value of the Fund;

II - send monthly to quota holders, when there has been movement:

a) - number of quotas and value of applications and redemptions;

b) - quota holder balance, in number of quotas and value.

III - send semi-annually to quota holders or disclose in the periodical(s) referred to in item "d" of this item, within 15 (fifteen) days after the end of the semester, the following information:

a) - return earned in the semester;

b) - value and composition of the portfolio, discriminating quantity, type and quotation of quotas, bonds and securities that make it up, the value of each application and its percentage of the total portfolio value, highlighting, if any, applications in affiliated companies;

c) - balance sheets and other financial statements;

d) - indication of the periodical(s) used for disclosure of information, of which at least one must be of large circulation in the locality of the administrator's headquarters;

e) - list of institutions responsible for providing custody services for the bonds and securities comprising the portfolio, issuance of certificates or bookkeeping of quotas and execution of treasury services.

IV - send annually to quota holders the following information, together with that contained in the previous item:

a) - quota holder balance, in number of quotas and value;

b) - the return in the last 4 (four) calendar semesters;

c) - the nominal value of the quota, at the time of the balance sheets, in the last 4 (four) semesters, in addition to the value adjusted for reinvestments occurring each year;

d) - the charges debited to the Funds in each of the last 2 (two) years, as provided in article 29, specifying their value and percentage relative to the Fund's average annual net asset value, in each year;

e) - brokerage expenses in each of the last 2 (two) years, as a percentage of the average annual value of the stock portfolio, in each year;

f) - proof for purposes of Income Tax Declaration.

§1º The administrator of a closed fund shall make available to quota holders, at its headquarters and premises, updated information, at least every fifteen days, relating to the composition of the Fund's portfolio, which shall be made available within two business days after the end of the period to which they refer.

§2º The administrator shall, within a maximum period of 15 (fifteen) days after the end of each month, make available to quota holders, at its headquarters or premises, information on the return earned in the month and the value and composition of the portfolio, discriminating quantity, type and quotation of the quotas, bonds and securities that make it up, the value of each application and its percentage of the portfolio value, highlighting, if any, applications in affiliated companies.

§3º The dispatches referred to in items III and IV of this article are not mandatory for quota holders:

I - holders of quotas whose value is less than three times the highest minimum wage; or

II - whose last dispatch of information was returned due to inaccuracy, at the declared address, if the quota holder has not communicated the respective update to the Fund administrator.

§4º The communications provided for in item IV of this article shall be sent within 60 (sixty) days after the end of the civil year to which they refer.

§5º The administrator shall make the publications provided for in this Instruction always in the same periodical(s) and any change in this regard must be preceded by notice to quota holders.

Art. 35. Any advertising text for the offer of quotas, advertisement or promotion of the Fund may not diverge from the content of its bylaws.

Sole paragraph. If the advertising text presents inaccuracies or improprieties that may induce the investor to valuation errors, the CVM may require that corrections and clarifications be disseminated, with equal prominence, through the medium(s) used to disseminate the original advertising text.

Art. 36. The administrator shall send to the CVM, within 15 (fifteen) days after the end of the period to which they refer, without prejudice to others that may be required, the following documents relating to the Fund:

I - monthly:

a) - trial balance including the result;

b) - statements of the composition and diversification of applications, highlighting, when applicable, applications in affiliated companies;

c) - statements of sources and applications of resources.

II - semi-annually:

a) - financial statements;

b) - copies of the information provided to quota holders;

c) - information regarding the general conditions of insurance coverage, in the case of transit of bonds and securities;

d) - list of institutions responsible for providing custody services for the bonds and securities comprising the portfolio, issuance of certificates or bookkeeping of quotas and execution of treasury services;

e) - list of judicial or extrajudicial demands, whether in defense of the rights of quota holders or against the administration of the Fund, indicating the date of its start and the final solution, if any.

Sole paragraph. The opinion of the independent auditor, relating to the financial statements, and the report on the analysis of the Fund's situation and the administrator's performance shall contemplate compliance with the norms of this Instruction and be sent to the CVM, within 60 (sixty) days, from the date of the end of the semester.

CHAPTER IX
OF THE PROHIBITIONS

Art. 37. It is prohibited for the administrator, in the name of the Fund:

I - receive deposits in a checking account;

II - contract or make loans in any modality;

III - provide surety, guarantee, acceptance or co-obligate in any other form;

IV - trade with duplicate bills, promissory notes, except those referred to in CVM INSTRUCTION Nº 134, of November 1, 1990, or other securities not authorized by the Securities and Exchange Commission;

V - promise predetermined return to quota holders;

VI - acquire or sell off the stock exchange floor shares of open companies registered for trading on the exchange, except for the cases of subscription, bonus and conversion of debentures into shares, regarding acquisition;

VII - apply resources:

a) - abroad;

b) - in the acquisition of real estate;

c) - in the subscription or acquisition of shares of its own issuance;

d) - in the acquisition of shares traded in an unorganized over-the-counter market, or organized by an entity not authorized by the CVM.

Sole paragraph. The prohibition contained in item "a", item VII, of this article does not apply to securities issued by companies headquartered in countries signatories to the Treaty of Asunción (MERCOSUR), or deposit certificates of shares issued by these companies, under the conditions authorized in this Instruction.

Art. 38. It is prohibited for the administrator to sell Fund quotas on installment.

CHAPTER X
OF THE PERIOD FOR GRANTING AUTHORIZATIONS

Art. 39. The authorizations provided for in this Instruction shall be granted within 30 (thirty) days, from the date of receipt of the request at the CVM, duly accompanied by the respective documentation.

Art. 40. The authorization shall be considered automatically granted if the request is not denied within the period referred to in article 39 of this Instruction.

Art. 41. The period of 30 (thirty) days shall be suspended only once, if the CVM requests additional documents or information necessary for the examination of the authorization request, or conditions it to modifications in the relevant documentation.

§1º A period not exceeding 60 (sixty) days, counted from the receipt, by the applicant, of the respective correspondence, shall be granted to meet any requirements, under penalty of the request being denied.

§2º The CVM is assured, for final manifestation, a period corresponding to 5 (five) business days in the event that the remainder of the period provided for in the "caput" of this article is less.

Art. 42. The denial of the authorization request shall be communicated to the interested party through a letter with Acknowledgment of Receipt - AR.

TITLE II
OF THE MUTUAL EQUITY INVESTMENT FUND - FMIA

Art. 43. The FMIA shall maintain from the total of its applications, at least 51% (fifty-one percent) in shares issued by open companies.

Sole paragraph. The limit provided for in this article shall be assessed monthly, based on the average daily percentages of the total stock portfolio relative to the total portfolio.

Art. 44. Observing the provisions of article 3, § 2 and article 43 of this Instruction, the balance of resources may be applied in:

I - other securities issued by open companies;

II - deposit certificates of shares issued by companies headquartered in countries signatories to the Treaty of Asunción (MERCOSUR) admitted to public trading in the Country;

III - quotas of fixed income funds and fixed income bonds, at the free choice of the administrator.

§1º The FMIA may maintain positions in organized markets for future settlement, involving contracts referenced in shares or share indices, prohibited are short sales or operations that imply an increase in portfolio risk.

§2º For the purpose of verifying compliance with the limit established in this article and in the Fund's Bylaws (article 3, § 2), the following shall be considered:

I - the values of contracts held open, both bought and sold, in the case of operations carried out in forward and futures markets;

II - the values of premiums paid or received, in the case of operations carried out in the options market.

§3º The sum of the values paid as premium in options purchase operations, not characterized as "straddles", according to the definition contained in the regulations of operations of the stock exchanges and commodity and futures exchanges, shall not exceed 10% (ten percent) of the Fund's Net Asset Value.

§4º The sum of positions in the spot and options market, added to the values of contracts held open for forward and future purchase, shall not exceed the Fund's Net Asset Value.

Art. 45. The applications of the FMIA shall observe that:

I - the total applications in shares of the same company shall not exceed 10% (ten percent) of the voting capital or 20% (twenty percent) of its total capital;

II - in any case, the total applications in securities issued or co-obligated by a company, its holding company, companies directly or indirectly controlled by it and its affiliates under common control shall not exceed 1/3 (one third) of the total applications of the Fund.

§1º For the determination of the diversification limits now established, shares received as bonus or resulting from the conversion of debentures and convertible shares or debentures, from the exercise of preemptive rights, shall not be considered, provided that the excess is eliminated within 6 (six) months, which may be extended, when justified and approved by the CVM.

§2º The FMIA shall obligatorily highlight in its prospectuses the risks inherent to the concentration of the portfolio resulting from its applications.

§3º The applications of the FMIA shall originate from subscriptions or acquisitions in stock exchanges, commodity and futures exchanges or in an organized over-the-counter market by an institution authorized to operate by the CVM.

Art. 46. The FMIA shall adapt to the portfolio composition and diversification requirements within a maximum period of 4 (four) months, from the date the authorization for operation is granted.

Sole paragraph. Non-compliance with the composition and diversification limits provided for in this Instruction, after the period provided for in this article, shall be justified before the Securities and Exchange Commission which, without prejudice to applicable penalties, may determine that the administrator convene a general meeting of quota holders to decide on one of the following alternatives:

I - transfer of Fund administration;

II - liquidation of the Fund.

Art. 47. In the case of open FMIs, in the issuance of quotas, the value determined at the close of the first business day subsequent to the effective availability of resources entrusted by investors to the qualified institution, at its headquarters or premises, shall be used, determining the quota value based on a net asset valuation carried out in accordance with the norms provided for in article 31 of this Instruction.

Art. 48. In the redemption of quotas, the value determined at the close of the first business day subsequent to the entry of the redemption request at the headquarters or premises of the qualified institution shall be used.

TITLE III
OF THE MUTUAL EQUITY INVESTMENT FUNDS - FREE PORTFOLIO - FMIA-CL

Art. 49. The FMIA-CL shall maintain, at least, 51% (fifty-one percent) of its applications in:¹

I - shares, subscription bonuses and debentures convertible into shares, issued by open companies; or

II - shares or deposit certificates of shares admitted to public trading in the Country, issued by companies headquartered in countries signatories to the Treaty of Asunción (MERCOSUR).

§1º The FMIA-CL may maintain positions in organized markets for future settlement involving contracts referenced in shares or share indices.¹

§2º The provisions of the sole paragraph of articles 43 and 44, § 2, of this Instruction apply to the FMIA-CL.¹

Art. 50. Always observing the provisions of article 3, § 1, of this Instruction, the balance of resources may be applied in:¹

I - other securities issued by open companies, acquired in stock exchanges, or in an organized over-the-counter market by an entity authorized by the CVM or during a public distribution period;

II - quotas of fixed income funds and fixed income bonds, at the free choice of the administrator;

III - quotas of FMIA's and FMIA's-CL, closed, which hold by provision of their bylaws, at least 90% (ninety percent) of their applications in shares.

Art. 51. The applications of the FMIA-CL shall originate from subscription or acquisitions in stock exchanges, commodity and futures exchanges or in an organized over-the-counter market by an institution authorized to operate by the CVM.

Art. 52. The FMIA-CL shall obligatorily highlight in its prospectuses the risks inherent to the concentration of the portfolio resulting from its applications.

§1º Every quota holder, upon entering the Fund, shall take written notice of the degree of risk of this application, the possibility of occurrence of negative net assets, if applicable, as well as any responsibility for consequent additional resource contributions.¹

§2º The administrator shall keep in its possession, available for CVM inspection, the document required in the previous paragraph.

Art. 53. The FMIA-CL shall adapt to the portfolio composition and diversification requirements within a maximum period of 2 (two) months, from the date the authorization for operation is granted.

Sole paragraph. Non-compliance with the composition and diversification limits provided for in this Instruction, after the period provided for in this article, shall be justified before the Securities and Exchange Commission which, without prejudice to applicable penalties, may determine that the administrator convene a General Meeting of quota holders to decide on one of the following alternatives:

I - transfer of Fund administration;

II - liquidation of the Fund.

Art. 54. The bylaws of the FMIA-CL shall provide, in addition to the matters provided for in article 3, on:

I - responsibility for any eventual negative net assets of the Fund;

II - liquidation of the Fund, in the event of occurrence of negative net assets of the Fund.

Art. 55. In the case of an open FMIA-CL, in the issuance of quotas, as provided for in its Bylaws, the value determined at the close of the day, or the first business day subsequent to the effective availability of resources entrusted by investors to the administrator, at its headquarters or premises, shall be used, determining the quota value based on a net asset valuation carried out in accordance with article 31 of this Instruction.

Art. 56. In the redemption of quotas of the FMIA-CL, as provided for in its Bylaws, the value determined at the close of the day, or the first business day subsequent, of the entry of the redemption request at the headquarters or premises of the financial institution responsible for the service, shall be used.

Sole paragraph. The provisions of the Bylaws regarding the day to be considered for the redemption value of quotas shall be compatible with the criterion adopted for the issuance of quotas.

TITLE IV
OF THE INVESTMENT FUND IN QUOTAS OF THE MUTUAL EQUITY INVESTMENT FUND - FIQFMIA

Art. 57. The FIQFMIA shall have, at least, 95% (ninety-five percent) of its portfolio applied in quotas of Mutual Equity Investment Funds and Mutual Equity Investment Funds - Free Portfolio.

§1º The balance of resources may be applied in quotas of fixed income funds or fixed income bonds, at the free choice of the administrator.

§2º The Bylaws of the FIQFMIA shall specify the maximum percentage of the portfolio that may be applied in a single Fund.

Art. 58. Non-compliance with the composition limit provided for in article 57 of this Instruction shall be justified before the Securities and Exchange Commission which, without prejudice to applicable penalties, may determine that the administrator convene a General Meeting of quota holders to decide on one of the following alternatives:

I - transfer of Fund administration;

II - liquidation of the Fund.

Art. 59. The maximum limit for payment of redemption of FIQFMIA quotas, constituted in the form of an open condominium, shall observe the provisions of article 27 of this Instruction.

TITLE V
OF THE FINAL AND TRANSITORY PROVISIONS

Art. 60. The provisions of article 11 of LAW Nº 6.385, of December 7, 1976, apply to the administrator and the director directly responsible for the administration of the Fund, regardless of other legal sanctions applicable.

Art. 61. For the purposes of article 11, § 3, of LAW Nº 6.385/76, a serious offense is considered the transgression of the provisions of this Instruction, except for the provisions relating to portfolio composition and diversification limits which constitute a case of objective nature offense for the purposes of summary administrative process procedure.

Art. 62. The Securities and Exchange Commission may cancel the authorization for operation of the Fund that, within 90 (ninety) days from the date of authorization, has not obtained the resources necessary for the formation of its initial net assets.

Art. 63. The administering institution that does not send to the CVM the information provided for in this Instruction shall be subject to a daily fine of up to 69.20 (sixty-nine point twenty) daily UFIRs, which shall apply from the first business day subsequent to the end of the periods determined for compliance with the obligation, without prejudice to the responsibility of the administrators, in accordance with item V of article 9 and article 11 of LAW Nº 6.385, of December 7, 1976.

Art. 64. The Funds in operation shall adapt their Bylaws and respective portfolios until December 31, 1994.

Art. 65. While the CVM does not issue the norms referred to in article 31, the provisions of the Accounting Plan of the Institutions of the National Financial System - COSIF, issued by the Central Bank of Brazil, shall apply to the Funds.

Art. 66. CVM INSTRUCTIONS NºS. 71, of November 11, 1987; 76, of April 20, 1988; 80, of June 22, 1988; 148, of July 3, 1991; 151, of July 10, 1991; 177, of February 6, 1992 and 199, of June 23, 1993 are repealed.

Art. 67. This Instruction shall enter into force on the date of its publication in the "Official Gazette" of the Union.

Signed original by
THOMÁS TOSTA DE SÁ
President