CVM Instruction 424 (Revoked)

FULL TEXT OF CVM INSTRUCTION NO. 424, OF OCTOBER 4, 2005, WITH CHANGES INTRODUCED BY CVM INSTRUCTION NO. 510/11.

Provides for the registration of commercial banks, multiple banks without an investment portfolio at the CVM, Caixa Econômica Federal, and credit cooperatives, as a condition for exercising the activities mentioned – Revokes CVM Instruction No. 417, of March 31, 2005.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes it known that the Collegiate Board, in a meeting held on this date, in accordance with the provisions of Art. 8, item I, of Law No. 6,385, of December 7, 1976, Art. 2 of Resolution No. 3,261, of January 28, 2005, and Art. 23, item VII, of Resolution No. 3,106, of June 25, 2003, with wording given by Resolution No. 3,309, of August 31, 2005, all from the National Monetary Council, HAS RESOLVED TO ISSUE THE FOLLOWING INSTRUCTION:

Art. 1 For the exercise of the activities referred to in Art. 2 of CMN Resolution No. 3,261, of January 28, 2005, and Art. 23, item VII, of CMN Resolution No. 3,106, of June 25, 2003, with wording given by CMN Resolution No. 3,309, of August 31, 2005, commercial banks, multiple banks without an investment portfolio, Caixa Econômica Federal, and credit cooperatives must request their registration with the Securities and Exchange Commission – CVM.

§1 The request must contain the following registration information:
I – name, address, and CNPJ of the institution; II – indication of the director responsible for the activity of distributing shares of open investment funds, or for collecting dispersed orders for the sale of stocks; III – indication of the director responsible for complying with the obligations established in CVM Instruction No. 301, of April 16, 1999, and CVM Instruction No. 387, of April 28, 2003.

§2 The registration information must be updated within a period of up to 5 (five) business days after any alteration has occurred.

• §2 revoked by CVM Instruction No. 510, of December 5, 2011.

Art. 2 In operations for the distribution of shares of open investment funds, or for the collection of dispersed orders for the sale of stocks, the provisions of CVM Instruction No. 301, of 1999, must be observed.

Sole Paragraph. In operations for the collection of dispersed orders for the sale of stocks, the provisions of CVM Instruction No. 387, of 2003, shall also be observed, insofar as applicable.

CVM INSTRUCTION NO. 424, OF OCTOBER 4, 2005.
2

Art. 3 Until June 30, 2008, credit cooperatives may only distribute shares of open investment funds classified as short-term funds, referenced funds, and fixed-income funds, in accordance with items I to III of Art. 92 of CVM Instruction No. 409, of August 18, 2004, with the distribution of funds that cover performance, entry, or exit rates prohibited.

Sole Paragraph. Credit cooperatives that achieve an index of 100% (one hundred percent) of certification referred to in Art. 1 of CMN Resolution No. 3,309, of 2005, before June 30, 2008, may request authorization from the CVM to distribute shares of other types of funds.

Art. 4 A serious offense is considered, for the purposes of the provisions of Art. 11, § 3, of Law No. 6,385, of December 7, 1976, the exercise, by the institutions referred to in Art. 1, of the activities of distributing shares of open investment funds and collecting dispersed orders for the sale of stocks, without prior registration with the CVM, in accordance with this Instruction.

Art. 5 The institution registered in accordance with this Instruction that does not keep its record updated is subject to a daily penalty fine of R$ 100.00 (one hundred reais), incurred from the day following the end of the period established for compliance with the obligation, without prejudice to the provisions of Art. 11 of Law No. 6,385, of 1976.

• Article revoked by CVM Instruction No. 510, of December 5, 2011.

Art. 6 The institutions referred to in Art. 1 shall have a period of 30 (thirty) days, counted from the date of publication of this Instruction, to request registration for the exercise of the activities of distributing shares of open investment funds and collecting dispersed orders for the sale of stocks, except for institutions already registered in the manner of CVM Instruction No. 417, of March 31, 2005.

Art. 7 CVM Instruction No. 417, of 2005, is hereby revoked.

Art. 8 This Instruction enters into force on the date of its publication in the Official Gazette of the Union.

Signed original by
MARCELO FERNANDEZ TRINDADE
President