CVM Instruction 514 (Revoked) - Determination of Additional Disclosure of Information on Related Party Transactions

CVM INSTRUCTION NO 514, OF DECEMBER 27, 2011
Determines the additional disclosure of information on transactions with related parties in notes explanatory to the financial statements of the funds specified in the Annex of CVM Instruction No 438, of July 12, 2006.

The PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Body, in a meeting held on December 20, 2011, in accordance with the provisions of art. 8, item I, of Law No 6.385, of December 7, 1976, APPROVED the issuance of the following Instruction:

Art. 1. Item “XVIII – Information on Transactions with Related Parties” is added to Chapter – Basic Standards - 1, Section - Accounting Information - 3, 2 – Explanatory Notes, of the Investment Fund Accounting Plan – COFI, annexed to CVM Instruction No 438, of July 12, 2006, as determined below:

“XVIII – Information on Transactions with Related Parties a) The investment fund administrator institution must also include in the explanatory notes information on any transactions carried out between the fund and the administrator institution, manager, or party related to them, so that information users can assess the extent of the effects of these transactions on the fund's net worth, financial position, and results. b) The term related party is used in this item with the meaning adapted from Technical Pronouncement CPC 05(R1), approved by CVM Deliberation No 642, of October 7, 2010, and must be applied in relation to the administrator or manager institution of the investment fund that reports the information. c) The administrator institution must disclose, at a minimum, the following information:
c.1) nature of the existing relationship; c.2) amount of transactions carried out; c.3) existing balances;

c.4) provision for doubtful settlement credits related to the amount of existing balances, when applicable; c.5) result recognized in the period related to the transaction; c.6) brokerage expenses appropriated in the period; c.7) average rates charged, by type of instrument, in securities and securities purchase operations, when applicable, with the exception of purchases of federal government securities and applications in committed operations; c.8) any other relevant information for understanding the effects of the transactions. d) The disclosure referred to in item c must be made separately for each type of transaction and counterparty involved. e) Examples of transactions to be disclosed include:
e.1) purchase of securities and securities from the administrator institution, manager, or related party; e.2) sale of securities and securities to the administrator institution, manager, or related party; e.3) use of a broker related to the administrator or manager institution; e.4) execution of committed operations with a financial institution related to the administrator or manager institution; e.5) execution of transactions with financial derivative instruments whose counterparty is the administrator institution, manager, or party related to them; e.6) provision of other services to the fund carried out by a party related to the administrator or manager institution; e.7) any other transaction between the fund and the administrator institution, manager, or party related to them.

f) Information on purchase and sale operations of federal government securities and committed operations between the fund and the administrator institution, manager, or party related to them must be presented in tabular form, as follows:

Operations of definitive purchase and sale of federal government securities carried out with related parties Month/Year Definitive purchase and sale operations of federal government securities carried out with related parties / total definitive operations with federal government securities Average daily volume / Average daily fund net worth (Price charged / Average daily price ) weighted by volume () Inform the source used

Committed operations with related parties
Month/Year Committed operations carried out with related parties / total committed operations Average daily volume / Average daily fund net worth Contracted Average Rate / SELIC Rate

g) Disclosure of the general conditions and terms under which the transactions were carried out is mandatory. h) The declaration that transactions with the administrator institution, manager, or party related to them were carried out on an equitable basis can only be made if the general conditions and terms can be effectively proven. i) Atypical transactions carried out after the closing of the fiscal year or period, but before the authorization to issue the financial statements, must also be disclosed.” (N.R.)

Art. 2. This Instruction enters into force on the date of its publication, producing effects in social years starting on or after January 1, 2012.

Signed Original by
MARIA HELENA DOS SANTOS FERNANDES DE SANTANA
President