CVM Instruction No. 160 of August 21, 1991

CVM INSTRUCTION NO. 160, OF AUGUST 21, 1991.

Provides for the registration, with the Securities and Exchange Commission (Comissão de Valores Mobiliários), of foreign financial institutions and institutional investors that may form portfolios of securities and financial assets in the country, as provided for in Resolution No. 1,832, of May 31, 1991, and gives other provisions.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION makes public that the Collegiate Body, in a session held on this date, and based on the provisions of item I of Article 8 of Law No. 6,385, of December 7, 1976, and Resolution No. 1,832, of May 31, 1991, of the National Monetary Council,

HAS DECIDED:

Art. 1 For the purposes of the provisions of CMN Resolution No. 1,832, of May 31, 1991, the following are subject to registration with the Securities and Exchange Commission:

a) own portfolios of foreign financial institutions, such as commercial and investment banks, and other financial institutions; b) institutional investors, such as Pension Funds and Insurance Companies; c) “Trust Companies” and Mutual Investment Funds; and d) Collective Accounts of institutional investors.

Art. 2 The CVM will require, for the investors referred to in letter “a” of Article 1, the following documents:

a) petition from the Brazilian administering institution, requesting registration in accordance with CMN Resolution No. 1,832, of May 31, 1991, assuming total and unrestricted responsibility for acts directly or indirectly practiced in the name of the foreign institutional investor, specifically with respect to the provisions of Articles 14, 16, 17, 21 and 24 of said Resolution. b) authorization to operate own portfolio issued by a regulatory body equivalent to the CVM or recognized by it; c) copy of the administration contract signed between the foreign investor and the administering institution in Brazil, with clear indication of the directors responsible for the parties;

d) custody contract; e) list of brokerage firms with which it intends to operate, communicating any changes in writing to the CVM; f) declaration by the administering institution that it maintains a specialized technical department or copy of the contract for the provision of this service by third parties; g) declaration, by the foreign investor, of who is its legal representative in Brazil; h) declaration, by the administering institution, of who is its independent auditor.

Art. 3 The CVM will require, for the investors covered in letter “b” of Article 1, the following documents:

a) proof of registration of the foreign institutional investor in a body equivalent to the CVM or recognized by it; b) those listed in Article 2, except for letter “b”.

Art. 4 The CVM will require, for the investors referred to in letter “c” of Article 1, the following documents:

a) report from an independent auditor, identifying the partners or quota holders of the foreign investor, which must have at least 30 (thirty) participants at the time of the registration request, 40 (forty) by February 22, 1992, and 50 (fifty) by August 22, 1992, with none individually holding more than 30% (thirty percent) of the investor's assets. The report must be signed by the same auditor hired for the examination of the usual financial statements; b) those listed in Article 2, except for letter “b”.

Art. 5 The CVM will require, for the investors referred to in letter “d” of Article 1, the following documents:

a) proof by a participant of the Collective Account that they are an institutional investor, domiciled abroad; b) copy of the administration contract signed between the foreign administrator of the collective account and the administering institution in Brazil, with indication of the directors responsible for the parties;

c) declaration by the Brazilian administering institution indicating the respective custodial entities of securities of its participants, and ensuring the existence of a contractual clause that restricts to that institution the power to move the custody; d) proof by the administering institution of the existence of an audit contracted for the examination of the movement and compliance with fiscal and legal obligations of the Collective Account; e) those listed in Article 2, except for letters “b”, “c”, “d” and “h”.

Art. 6 The Brazilian administering institution of a Collective Account must maintain, available to the CVM, documentation discriminating by participant the transactions carried out and the assets comprising the portfolio, as well as custody movements.

Art. 7 The documents referred to in this Instruction must be presented in Portuguese and, in the case of official documents, be accompanied by a sworn and consularized translation.

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

Signed original by
JOSÉ ARTHUR ESCODRO
Acting President