CVM Instruction 406 (Revoked)

FULL TEXT OF CVM INSTRUCTION NO. 406, OF APRIL 27, 2004, WITH AMENDMENTS INTRODUCED BY CVM INSTRUCTIONS NOS. 453/07, 460/07, AND 501/11.

Provides for the constitution, operation, and administration of Participations Investment Funds that receive financial support from development agencies.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Body, in a meeting held on this date, having regard to the provisions of Art. 2, item IX; Art. 8, item I, and Art. 19 of Law No. 6,385, of December 7, 1976, HAS RESOLVED TO ISSUE THE FOLLOWING INSTRUCTION:

Art. 1. This Instruction provides for permitted operations for Participations Investment Funds governed by CVM Instruction No. 391, of July 16, 2003, which receive financial support from development agencies.

Art. 2. Participations Investment Funds governed by CVM Instruction No. 391/03 that receive direct financial support from development agencies are authorized to:

I – issue shares of different classes, to which different economic-financial and/or political rights are attributed, to be established in the fund's regulations; and

II – borrow directly from the agencies or development banks referred to in the caput, limited to the amount corresponding to 30% (thirty percent) of the fund's assets.

§1. The exercise of the powers provided for in items I and II is only permitted after obtaining a formal commitment for financial support from development agencies, which involves making investments or granting financing in favor of the fund.

§2. For the purposes of this Instruction, development agencies are considered to be multilateral organizations, development agencies, or development banks that possess resources derived from contributions and paid-in quotas predominantly from budgetary resources of a single or various governments, and whose control is governmental or multi-governmental.

Art. 2-A. The provisions of Art. 2 apply also to Emerging Company Investment Mutual Funds – FMIEE governed by CVM Instruction No. 209, of March 25, 1994, that receive direct financial support from development agencies.

• Article included by CVM Instruction No. 453, of April 30, 2007.

Art. 2-A. The provisions of Art. 2 apply also to the funds specified below, provided they receive direct financial support from development agencies:

I – Emerging Company Investment Mutual Funds – FMIEE governed by CVM Instruction No. 209, of March 25, 1994; and

INSTRUÇÃO CVM NO. 406, OF APRIL 27, 2004
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II – Infrastructure Participations Investment Funds governed by CVM Instruction No. 460, of October 10, 2007.

• Wording given by CVM Instruction No. 460, of October 10, 2007.

Art. 2-A. The provisions of Art. 2 apply also to the funds specified below, provided they receive direct financial support from development agencies:

I – Emerging Company Investment Mutual Funds – FMIEE governed by CVM Instruction No. 209, of March 25, 1994; and

II – Infrastructure Participations Investment Funds – FIP-IE and Investment Funds in Participation in Economic Production Intensive in Research, Development, and Innovation – FIPPD&I, governed by CVM Instruction No. 460, of October 10, 2007.

• Wording given by CVM Instruction No. 501, of July 15, 2011.

Art. 3. This Instruction enters into force on the date of its publication in the Official Gazette of the Union.

Signed Original

LUIZ LEONARDO CANTIDIANO
President