CVM INSTRUCTION NO. 231, OF JANUARY 16, 1995

Amends the prohibition of CVM Instruction No. 82, of 09.19.88, which provides for the Management of Securities Portfolios.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Body, in a session held on December 23, 1994, based on the provisions of Articles 8°, I and II, and 23 of Law No. 6.385, of December 7, 1976,

HAS DECIDED:

Art. 1° To exempt from the prohibition set forth in Article 11, item I, of CVM Instruction No. 82, of 09.19.88, the portfolio administrator who:

I - although formally contracted as a portfolio administrator, demonstrably does not hold discretionary power over it, and does not have prior knowledge of the operation;

II - obtains prior authorization from the client to assume the counterparty of its operations, provided that:

a) such authorization is included in the management contract;

b) in the case of a corporate client, the authorization is included in the management contract or is indicated, in writing, to the administrator the natural person capable of granting such authorization, this delegation also attached to the registration form;

c) in the case of Investment Funds and Investment Clubs, it is contained in their bylaws and statutes, respectively, explicit authorization for the administrator or institution related to them to be a counterparty in their operations.

§1° In the operations described in this article, the client must be informed, every 10 (ten) days, that the counterparty has been assumed by the administrator.

§2° The direct operations carried out under the protection of item III, letter “c”, of this article must have their value and percentage of participation in the financial volume of the fund's operations reported in the semi-annual report sent to unitholders.

Art. 2° The exceptions provided for in the previous article do not exempt the administrator from observing, in the aforementioned operations, the provisions of CVM Instruction No. 08, of October 8, 1979, and other normative provisions.

CVM INSTRUCTION NO. 231, OF JANUARY 16, 1995

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Art. 3° This Instruction enters into force on the date of its publication.

Signed original by

THOMÁS TOSTA DE SÁ
President