CVM Instruction 506 (Repealed)

Amends CVM Instruction No. 301, of April 16, 1999. Repeals Article 12 of CVM Instruction No. 14, of October 17, 1980.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION – CVM makes public that the Collegiate Board, in a meeting held on September 21, 2011, and based on the provisions of Articles 8, item I, 15, item VI, 16, and 18, item II, of Law No. 6,385, of December 7, 1976, APPROVED the following Instruction:

Art. 1 Article 3 of CVM Instruction No. 301, of April 16, 1999, shall be effective with the following wording:

“Article 3......

§ 1st The persons referred to in Article 2 must register their clients containing, at a minimum, the information and documents indicated in Annex I.

§ 2nd The persons referred to in Article 2 must update the registration data of active clients at intervals not exceeding 24 (twenty-four) months.

§ 3rd For the purposes of this Instruction, an active client is considered to be one who has made movements or has a balance in their account within the 24-month period following the date of the last update.

§ 4th New movements in accounts owned by inactive clients will only be permitted upon updating their respective registrations.

§ 5th The CVM Collegiate Board may authorize the adoption of alternative registration systems, provided they satisfy the objectives of current regulations and adopt procedures subject to verification.

§ 6th Clients must immediately communicate any changes to their registration data.” (NR)

Art. 2 CVM Instruction No. 301, of 1999, shall be effective with the addition of Annex I, whose wording is as follows:

“ANNEX I
Minimum content of client registration

Article 1 The client registration must have, at a minimum, the following content:

I – if natural person:
a) full name; b) sex; c) date of birth; d) place of birth; e) nationality; f) marital status; g) parentage; h) name of spouse or partner; i) nature and number of identification document, name of issuing authority, and date of issuance; j) Individual Taxpayer Registry number – CPF/MF; k) full address (street, complement, neighborhood, city, state, and ZIP code) and phone number; l) electronic address for correspondence; m) professional occupation;

n) entity for which they work; o) information on income and financial situation; p) information on client’s risk profile and financial knowledge; q) if the client operates on behalf of third parties, in the case of investment fund administrators and managed portfolios; r) whether the client authorizes or not the transmission of orders by proxy; s) indication of whether there are proxies or not; t) qualification of proxies and description of their powers, if any; u) dates of registration updates; v) client’s signature; w) copies of the following documents:
i) identification document; and ii) proof of residence or domicile. x) copies of the following documents, if applicable:
i) power of attorney; and ii) identification document of the proxy.

II – if legal entity:
a) the corporate name or trade name;

b) names and CPF/MF of direct controllers or corporate name and National Registry of Legal Entities – CNPJ of direct controllers; c) names and CPF/MF of administrators; d) names of proxies; e) CNPJ number; f) full address (street, complement, neighborhood, city, state, and ZIP code); g) phone number; h) electronic address for correspondence; i) main activity developed; j) average monthly revenue of the last twelve months and financial situation; k) information on client’s risk profile and financial knowledge; l) corporate name or trade name of controlling, controlled, or affiliated legal entities; m) if the client operates on behalf of third parties, in the case of investment fund administrators and managed portfolios; n) whether the client authorizes or not the transmission of orders by representative or proxy; o) qualification of representatives or proxies and description of their powers; p) dates of registration updates; q) client’s signature;

r) copies of the following documents:
i) CNPJ; ii) legal entity’s formation document duly updated and registered with the competent authority; and iii) corporate acts indicating the administrators of the legal entity, if applicable. s) copies of the following documents, if applicable:
i) power of attorney; and ii) identification document of the proxy.

III – in other cases:
a) complete identification of clients; b) complete identification of their representatives and/or administrators; c) financial and patrimonial situation; d) information on client’s risk profile and financial knowledge; e) if the client operates on behalf of third parties, in the case of investment fund administrators and managed portfolios; f) dates of registration updates; and g) client’s signature.

§ 1st Changes to the address recorded in the registration depend on a written or electronic order from the client, and proof of the corresponding address.

§ 2nd In the case of non-resident investors, the registration must additionally contain:

I – the names of natural persons authorized to issue orders and, as applicable, the administrators of the institution or those responsible for portfolio administration; and II – the names of the legal representative and the person responsible for the custody of their securities.

Article 2 The registration must contain a declaration, dated and signed by the client or, if applicable, by a legally constituted proxy, stating that:

I – the information provided to complete the registration is true; II – the client commits to informing, within 10 (ten) days, any changes that may occur in their registration data, including any revocation of mandate, if there is a proxy; III – the client is a person linked to the intermediary, if applicable; IV – the client is not barred from operating in the securities market; V – their orders must be transmitted in writing, through electronic connection systems, telephone, and other voice transmission systems; and VI – the client authorizes intermediaries, if there are pending debts in their name, to settle contracts, rights, and assets acquired on their behalf and order, as well as to execute assets and rights given as collateral for their operations or that are in the possession of the intermediary, applying the proceeds from the sale to the payment of pending debts, regardless of judicial or extrajudicial notification.

Sole Paragraph. For the trading of investment fund shares, it is also mandatory that the registration with the intermediary include the client’s prior authorization, through a specific instrument, including a declaration of awareness that:

I – they received the regulations and, if applicable, the prospectus or fund document; II – they are aware of the risks involved and the investment policy;

III – they are aware of the possibility of negative net worth, if applicable, and, in this case, their responsibility for subsequent additional resource contributions.

Article 3 The registration of clients who make operations with derivatives in an organized market must include a specific standard contract for such operations.

Sole Paragraph. The market administrator entity must establish the content of the standard contract mentioned in the main text.”

Art. 3 Article 12 of CVM Instruction No. 14, of October 17, 1980, is repealed.

Art. 4 This Instruction enters into force on April 2, 2012.

Original signed by
MARIA HELENA DOS SANTOS FERNANDES DE SANTANA
President