CVM Instruction No. 279 of May 14, 1998 (Revoked)

FULL TEXT OF CVM INSTRUCTION NO. 279, OF MAY 14, 1998, WITH THE CHANGES INTRODUCED BY CVM INSTRUCTIONS NOS. 295/90, 337/00, 339/00, 347/00, 354/01, 360/02, 397/03, 518/12, 604/18, 609/19 AND 615/19

CVM INSTRUCTION NO. 279, OF MAY 14, 1998.

Provides for the constitution, administration, and operation of Mutual Privatization Funds - FGTS intended for the acquisition of securities, using available resources from the linked account of the Employment Guarantee Fund - FGTS.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Board, in a meeting held on this date, and based on the provisions of item I of art. 8 of Law No. 6,385, of December 7, 1976, Law No. 9,491, of September 9, 1997, Decree No. 2,430, of December 17, 1997, and Provisional Measure No. 1613-7, of April 29, 1998, RESOLVES to issue the following Instruction:

ON THE CONSTITUTION AND CHARACTERISTICS

Art. 1 The Mutual Privatization Fund - FGTS, constituted in the form of an open-end condominium, is a pooling of resources intended for the acquisition of securities within the scope of the National Privatization Program, instituted by Law No. 8,031, of April 12, 1990, and State Privatization Programs, with prior approval in both cases by the National Privatization Council - CND.

Sole Paragraph. The Mutual Privatization Fund - FGTS shall be formed exclusively by resources from natural persons participating in the FGTS, directly or through Investment Clubs - FGTS, according to CVM regulation, who make their option for this investment, in accordance with Law No. 9,491/97 and Decree No. 2,430/97.

Art. 2 The Fund shall adopt the name “Mutual Privatization Fund – FGTS”, complemented by the corporate name of the issuing company of the securities that make up the portfolio, in the form of art. 22 of this Instruction, and its shares shall be fully paid, exclusively with resources resulting from the partial conversion of FGTS balances of the participants referred to in the sole paragraph of art. 1 of this Instruction.

Sole Paragraph. A Mutual Privatization Fund – FGTS intended exclusively for the investment of resources after the expiration of the six-month period provided for in § 7 of art. 20 of Law No. 8,036, of May 11, 1990, with the wording given by Law No. 9,635, of May 15, 1998, may be constituted, which shall adopt the name “Mutual Privatization Fund – FGTS Free Portfolio”, obeying the rules of constitution, administration, and operation provided for in this Instruction.

• Sole Paragraph included by CVM Instruction No. 337, of May 15, 2000.

Art. 2 The fund shall adopt the name “Mutual Privatization Fund – FGTS”, complemented by identification of the company issuing the securities that make up the portfolio, in the form of art. 22 of this Instruction, and its shares shall be fully paid with resources resulting from the partial conversion of the FGTS balances of the participants referred to in the sole paragraph of Art. 1 or resulting from the transfer provided for in item II, of art. 20.

Art. 2 The Fund shall adopt the name “Mutual Privatization Fund – FGTS”, complemented by the identification of the issuer of the securities that make up the portfolio, in the form of art. 22 of this Instruction, and its shares shall be fully paid with resources from the partial conversion of the FGTS balances of the participants referred to in the sole paragraph of art. 1 of this instruction or resulting from the transfer provided for in item II of art. 20 of this Instruction.

• Wording given by CVM Instruction No. 360, of January 29, 2002.

Sole Paragraph. A Mutual Privatization Fund – FGTS may be constituted which shall have its shares fully paid exclusively with resources resulting from the transfer provided for in item II, of Art. 20, which shall adopt the name “Mutual Privatization Fund – FGTS Free Portfolio”, obeying the rules of constitution, administration, and operation provided for in this Instruction.

• Wording given by CVM Instruction No. 339, of June 21, 2000.

Art. 3 The constitution of the Mutual Privatization Fund - FGTS, as well as the following acts relating to the Fund, shall depend on prior authorization from the CVM:
I - amendment of the bylaws;
II - substitution of the administering institution; III - spin-off, merger, or incorporation into another Mutual Privatization Fund - FGTS; IV - liquidation of the Fund.

Art. 3 The constitution of the Mutual Privatization Fund – FGTS shall depend on prior authorization from the CVM.

• Wording given by CVM Instruction No. 604, of December 13, 2018.

§1 The authorization request for the constitution of the Fund shall be accompanied by:
I - resolution of the administering institution regarding the constitution of the Fund, which shall contain the full text of its bylaws, which, after authorization, shall be registered in the Registry of Titles and Documents; I – resolution of the administering institution regarding the constitution of the Fund, which shall contain the full text of its bylaws;

• Item I with wording given by CVM Instruction No. 615, of October 2, 2019.
  II - document proving the hiring of an independent auditor registered with the CVM, who shall be responsible for the audit of the Fund;

III - document proving the hiring of an institution authorized by the CVM to provide securities custody services; IV - declaration that service contracts with third parties have been signed, from which it must necessarily appear that the parties know and accept, without reservation, all provisions contained in this Instruction and applicable regulation, with the administrator's declaration including the qualification of those hired to perform the services to be provided; V - dissemination material, if any.

§2 The bylaws of each Fund shall clearly and objectively provide for:
I - investment policy to be adopted by the administering institution, assets that may compose the Fund's portfolio, the diversification policy, and definition regarding the companies whose securities may be included in the Fund's portfolio; II - qualification of the Fund's administering institution and, when the activity is contracted with third parties, of the portfolio manager; III - remuneration of the administering institution, observing the provisions of art. 5 of this Instruction; IV - criterion for calculating the share value for the purpose of subscription, full payment, and redemption; V - conditions for subscription, full payment, and redemption of shares, observing the provisions of Law No. 9,491/97 and Decree No. 2,430/97; VI - expenses and charges imputed to the Fund; VII - mandatory information to unitholders, as provided for in this Instruction.

§3 For authorization of the acts mentioned in items II, III, and IV, financial statements must be prepared, on the date of the event, duly audited.

§3 The procedures provided for in chapters XIII and XIV of CVM Instruction No. 302, of May 5, 1999, apply to the events mentioned in items III and IV.

• § 3 with wording given by CVM Instruction No. 397, of October 16, 2003.

Art. 3-A. The information or documents for which this Instruction requires “communication”, “access”, “remittance”, “forwarding”, “dissemination”, “making available” or “attestation” must be forwarded in accordance with the communication rules defined in the regulation that provides for the constitution, administration, operation, and dissemination of information of investment funds.

• Art. 3-A included by CVM Instruction No. 604, of December 13, 2018.

ON ADMINISTRATION

Art. 4 The administration of the Mutual Privatization Fund – FGTS shall be exercised exclusively by a savings bank, multiple bank with an investment portfolio, investment bank, brokerage firm, or distributor, which are authorized by the CVM to practice the activity provided for in art. 23 of Law No. 6,385, of December 7, 1976, and possess paid-in capital and net worth not less than:
I - R$ 5,000,000.00 (five million reais) for funds with assets up to R$ 10,000,000.00 (ten million reais); II - R$ 10,000,000.00 (ten million reais) for funds with assets up to R$ 30,000,000.00 (thirty million reais); III - R$ 30,000,000.00 (thirty million reais) for funds with assets exceeding R$ 30,000,000.00 (thirty million reais).

Sole Paragraph. If the values corresponding to paid-in capital and net worth are insufficient to meet the requirements established in items "I", "II", and "III" of this article, the values of such items relative to the conglomerate to which the companies referred to in the caput of this article may eventually belong may be used.

§1 If the values corresponding to paid-in capital and net worth are insufficient to meet the requirements established in items "I", "II", and "III" of this article, the values of such items relative to the conglomerate to which the companies referred to in the caput may eventually belong may be used.

§2 The administration of each fund shall be under the direct supervision and responsibility of a statutory director or managing partner of the institution, indicated as responsible for portfolio administration before the CVM.

§3 The fund's bylaws may provide for mechanisms for unitholder participation in administrative decisions related to the fund, without cost to the fund, under the conditions stipulated in the bylaws, without prejudice to the responsibility of the administrators and the provisions of this Instruction.

§4 The requirement of paid-in capital and net worth, established in this article, does not apply when the administering institution:
I - contracts the services listed below with an institution accredited by the CVM to provide share bookkeeping and securities custody services:
a) the bookkeeping of share issuance and redemption; b) treasury services, such as those listed below:

1. opening and moving bank accounts, in the name of the fund;
2. payment, upon redemption, transfer of shares, or liquidation of the fund;
3. financial settlement of all fund operations;
4. receipt of income and any other receipts or payments of the fund;
   c) the organization and forwarding of documents and information provided for in arts. 30 to 33 of this Instruction.

II - possesses paid-in capital and net worth not less than R$ 2,000,000.00 (two million reais).

• §§ 1 to 4 with wording given by CVM Instruction No. 295, of January 29, 1998.

Art. 5 The bylaws of each Fund shall provide for the remuneration of the administrator.

§1 The fixed portion of the remuneration, incident on the value of the Fund's Net Worth, must be appropriated daily and paid monthly.

§1 The management fee, incident on the value of the Fund's Net Worth, must be appropriated per business day as an expense of the Fund, and the charging of a management fee based on the Fund's result (performance fee) is prohibited.

• Wording given by CVM Instruction No. 337, of May 15, 2000.

§2 The possibility of charging a performance fee incident on the portion of share appreciation that exceeds the variation of the Reference Rate plus six percent per year may be instituted in the Fund's bylaws.

§2 The charging of any fee as a title of entry or exit from the Fund is prohibited.

• Wording given by CVM Instruction No. 337, of May 15, 2000.

§3 For the purpose of appropriating the value related to the performance fee, the values earned by the administering institution, as fixed remuneration, shall be deducted, with the difference appropriated as variable remuneration, in accordance with § 2.

§2 The charging of any fee as a title of entry or exit from the Fund is prohibited, observing the provisions of §3 of this article.

§3 The Funds may provide in their bylaws for the existence of an early redemption fee under the conditions that may be previously established by specific CVM deliberation for such purpose.

• Wording given by CVM Instruction No. 339, of June 21, 2000.

§4 The remuneration referred to in the previous paragraph shall be appropriated daily, to debit or credit, and paid semi-annually, if positive, always on the first business day of the subsequent semester.

§5 The charging of any fee as a title of entry or exit from the Fund is prohibited.

Art. 6 The administering institution may, with three months' prior notice, through written communication addressed to each unitholder, renounce the administration of the Fund, being obliged, in the same act, to communicate its intention to the CVM.

Art. 7 The CVM, in the exercise of its legal powers, may de-register the administering institution if it fails to comply with current regulations.

Sole Paragraph. The de-registration process shall begin with notification from the CVM to the administering institution, indicating the facts that support it and the deadline for presenting a defense, which shall not be less than fifteen days, counted from the date of receipt of the communication issued by the CVM.

Art. 8 In the cases of resignation and de-registration, the administering institution is obliged to convene, within two business days, from the legal act that supports the decision, the General Assembly to elect its successor, or to deliberate on the incorporation of the Fund into another Mutual Privatization Fund - FGTS.

Sole Paragraph. The administering institution shall remain in the exercise of its functions until its effective substitution.

Art. 9 The administering institution, as agent, shall have powers to exercise all rights inherent to the titles and securities comprising the portfolio of the Mutual Privatization Fund - FGTS, including the right to sue and to attend and vote in general or special assemblies, and may likewise open and move bank accounts, freely acquire and alienate titles and securities, settle, and, in short, practice all acts necessary for the administration of the portfolio, observing the limitations of this Instruction.

§1 The Fund's assets shall be maintained, mandatorily, in custody, in an account segregated from the administrator's account, in an institution authorized by the CVM to provide this service.

§1 The financial assets and/or operational modalities comprising the Fund's portfolios shall be custodied, registered, and/or maintained in a deposit account directly in the name of the fund, segregated from the administrator's account, centralized in a single custody entity authorized to exercise the activity by the CVM.

• Wording given by CVM Instruction No. 339, of June 21, 2000.

§2 Custodian institutions of the Fund's titles and securities may only comply with orders signed by the legal representative(s) or agent(s) of the administering institution, duly accredited for this purpose.

Art. 10 The following are included among the obligations of the administering institution:
I - maintain, at its own expense, updated and in perfect order:
a) the records of unitholders and share transfers; b) the minutes book of general assemblies; c) the attendance book of unitholders; d) the archive of auditors' reports; e) the accounting records relating to the Fund's operations and assets; and f) the documentation relating to the Fund's operations. II - receive dividends, bonuses, and any other income or values from the Fund; III - exercise or alienate the rights of subscription of shares and other securities;

IV - employ, in the defense of unitholders' rights, the diligence required by the circumstances, practicing the acts necessary to ensure them, such as lawsuits, appeals, and exceptions; V - bear all expenses not provided for in this Instruction as charges of the Fund; VI - pay, at its own expense, penalty fees, in accordance with current legislation, per day of delay in complying with the deadlines provided for in art. 30 of this Instruction; VII - widely and immediately disseminate any relevant act or fact pertaining to it, in order to guarantee all unitholders access to information that may, directly or indirectly, influence their decisions regarding staying in the Fund and other investors regarding the acquisition of shares; VIII - adopt procedures and controls that ensure adequate segregation between the different functions exercised by the Fund's administrator and affiliated institutions, especially between investment decisions for the Fund and for treasury operations and the administering institution's own portfolio, its affiliates and controlled companies, its controller, and those controlled by the same controller, and commit to presenting, within ninety days, counted from the date of the Fund's start of operation, an audit report that proves the existence of said procedures and controls. VIII - adopt procedures and controls that ensure adequate segregation between the different functions exercised by the Fund's administrator and affiliated institutions, especially between investment decisions for the Fund and for treasury operations and the administering institution's own portfolio, its affiliates and controlled companies, its controller, and those controlled by the same controller.

• Wording given by CVM Instruction No. 347, of September 29, 2000.

ON THE GENERAL ASSEMBLY

Art. 11. It is exclusively the competence of the General Assembly of unitholders, observing, insofar as applicable, the provisions of art. 3 of this Instruction:
I - to take, annually, within a maximum period of four months, after the end of the fiscal year, the accounts relating to the Fund, as well as to deliberate on the financial statements presented by the administering institution; II - to amend the Fund's bylaws; III - to deliberate on the substitution of the administering institution; IV - to deliberate on the eventual liquidation of the Fund, spin-off, merger, and incorporation into another Mutual Privatization Fund - FGTS; V - to deliberate on changes in the remuneration rate of the administering institution, obeying the provisions of this Instruction.

Sole Paragraph. The Fund's bylaws may be amended, independently of a General Assembly or consultation with unitholders, whenever such amendment results exclusively from the need to meet CVM requirements, as a consequence of legal or regulatory norms, and the necessary publication and communication to unitholders must be provided for, within thirty days, counted from the CVM's communication.

§1 The Fund's bylaws may be amended, independently of a General Assembly or consultation with unitholders, whenever such amendment results exclusively from the need to meet CVM requirements, as a consequence of legal or regulatory norms, and the necessary publication and communication to unitholders must be provided for, within thirty days, counted from the CVM's communication.

§2 Only merger and incorporation operations of Mutual Privatization Funds – FGTS that have in their portfolio securities issued by the same company may be carried out, in accordance with Art. 22, and merger and incorporation operations of Mutual Privatization Funds – FGTS free portfolio with compatible investment policies are also permitted.

§2 Only merger and incorporation operations of Mutual Privatization Funds – FGTS that have in their portfolio securities from the same issuer may be carried out, in accordance with art. 22 of this Instruction, and merger and incorporation operations of Mutual Privatization Funds – FGTS Free Portfolio with compatible investment policies are also permitted.

• Wording given by CVM Instruction No. 360, of January 29, 2002.

§3 The transformation of a Mutual Privatization Fund – FGTS into a Mutual Privatization Fund – FGTS Free Portfolio and vice-versa is prohibited.

§4 The alteration of the company issuing the securities comprising the fund's portfolio is prohibited, in accordance with Art. 22.

• §§ 1 to 4 with wording given by CVM Instruction No. 339, of June 21, 2000.

§ 5 The Fund's financial statements whose audit report does not contain a modified opinion may be considered automatically approved if the corresponding assembly is not installed due to the non-attendance of any investors.

• § 5 included by CVM Instruction No. 604, of December 13, 2018.

Art. 12. The convening of the General Assembly shall be made through public announcement in the periodical(s) intended for the dissemination of the Fund's information and by correspondence, sent to each of the unitholders registered in the “Register of Unitholders” up to fifteen days before the date fixed for its holding, including, in the calculation of the period, the day of issuance of the convening instrument and excluding the day of the holding of the Assembly.

Art. 12. The convening of the General Assembly shall be made by correspondence, sent to each of the unitholders registered in the "Register of Unitholders" up to 15 (fifteen) days before the date fixed for its holding, including, in the calculation of the period, the day of issuance of the convening and excluding the day of the holding of the Assembly.

• Article with wording given by CVM Instruction No. 397, of October 16, 2003.

§1º In the case of the Mutual Investment Fund - FGTS, whose condominium owners belong to a specific collective, it shall be permissible for the summons referred to in the caput of this article to be made through internal or local circulation publication.

§2º If the Assembly is not held, a second summons shall be issued, with a minimum advance notice of five business days.

§3º The summons shall obligatorily include the day, time, and location where the assembly will be held and, clearly, the matters to be discussed.

§4º Regardless of the summons provided for in this article, the General Assembly shall be considered regular if all shareholders attend.

§5º The General Assembly may be summoned by the administering institution or by shareholders holding at least five percent of the total shares issued by the Fund.

Art. 13. In the General Assembly of shareholders, decisions shall be taken by a majority of the shares of the condominium owners present:

I - in the first summons, with a minimum quorum of five percent of the issued shares;

II - in the second summons, with any number.

Sole Paragraph. Only shareholders registered in the "Register of Shareholders" up to fifteen days before the date fixed for its holding may vote in the General Assembly.

Art. 14. The decisions of the General Assembly may be taken through a formalized consultation process by the administering institution, in writing, to each shareholder for response within a period of twenty days, from the issuance of the correspondence.

§1º The consultation shall include all necessary informational elements for the exercise of the right to vote.

§2º The absence of response shall be considered as consent on the part of the shareholder, provided that such interpretation is expressly authorized by the Fund's regulations and appears in the consultation itself.

§3º The quorum for decision-making in the formalized consultation process shall be an absolute majority of the issued shares, regardless of the matter.

§4º Electronic means may be used for the consultation referred to in this article, as well as to receive responses from shareholders, provided that the procedure to be observed is detailed in the Fund's regulations.

ON NET ASSETS

Art. 15. Net assets of each Fund are understood to be the sum of cash on hand plus the value of the portfolio, plus amounts receivable, minus liabilities.

Sole Paragraph. To determine the value of the portfolio, the standards established by the CVM shall be observed.

ON THE ISSUANCE AND PLACEMENT OF SHARES

Art. 16. The shares of the Privatization Mutual Fund - FGTS shall correspond to ideal fractions of its net assets and shall ensure the same rights to their holders.

§1º The shares shall assume a registered form and shall be kept in deposit accounts in the name of their holders.

§2º The quality of shareholder shall be proven by the initial application request document and by the statements of the deposit accounts.

Art. 17. The statements of deposit accounts shall constitute the valid document to prove the obligation of the administering institution to comply with the contractual prescriptions contained in the Fund's regulations and the norms of this Instruction.

Sole Paragraph. Any restrictive or modifying clause of the obligation referred to in this article shall be deemed unwritten.

Art. 18. The issuance of shares shall be carried out in accordance with the provisions of the Fund's regulations.

§1º The subscribed shares shall be fully paid exclusively with the resources mentioned in art. 2 of this Instruction.

§2º The date of subscription of the shares shall correspond to the date on which the FGTS operating agent communicates to the Privatization Mutual Fund - FGTS the blocking of the respective amount in the FGTS holder's account.

§3º The payment of shares shall occur concomitantly with the financial settlement of the securities acquired within the scope of the PND or the State Privatization Programs.

§2º The date of subscription of the shares shall correspond to the date on which the FGTS operating agent communicates to the Privatization Mutual Fund – FGTS the blocking of the respective amount in the FGTS holder's account or the date of transfer, in the manner of §2 of Art. 20.

§3º The payment of shares shall occur concomitantly with the financial settlement of the securities acquired within the scope of the PND or the State Privatization Programs or the date of transfer, in the manner of §2 of Art. 20.

• Wording given by CVM Instruction No. 339, of June 21, 2000.

§4º The value of the share shall be determined based on an asset valuation carried out in accordance with the standards issued by the CVM.

Art. 19. Every shareholder, upon subscribing to shares of the Fund, shall attest, in writing, that they have knowledge of the content of the regulations, administration fees, and the risk of the investment, also declaring that they are aware that they may only participate in the public offering through a single Fund.

Art. 19. Every shareholder, upon subscribing to the shares of the Fund, shall attest, in writing, that they received the respective prospectus and the regulations, and have knowledge of the administration fees and the risk of the investment, declaring that they are aware that they may only participate in the public offering through a single Fund.

• Wording given by CVM Instruction No. 337, of May 15, 2000.

§1º In the attestation signed by the shareholder, there shall be, in a highlighted space, express mention of the risk criteria adopted in the selection of the Fund's portfolio.

§2º The administrator shall keep the document required in the caput of this article at their disposal, available to the CVM.

Art. 19. Every shareholder, upon subscribing to the shares of the Fund, shall attest, by means of an adherence term, that they received the respective prospectus and the regulations, and have knowledge of the administration fees and the risk of the investment.

§1º When it concerns a Privatization Mutual Fund – FGTS Free Portfolio, the adherence term mentioned in the caput of this article shall contain express mention of the risk criteria adopted in the selection of the Fund's portfolio.

§2º The administrator must keep, available to the CVM, the adherence term referred to in this article, duly signed by the investor, or an electronic system recognized by system audit, which guarantees compliance with the provisions of the caput.

• Wording given by CVM Instruction No. 339, of June 21, 2000.

§3 The prospectus of the Fund constituted in the form of art. 2, sole paragraph, of this Instruction shall comply with the provisions of arts. 34 and 35 of CVM Instruction No. 302, of May 5, 1999, insofar as applicable.

§4 The Fund constituted in the form of art. 2, caput, of this Instruction shall be exempt from the prospectus.

• §§ 3 and 4 included by CVM Instruction No. 337, of May 15, 2000.

ON THE REDEMPTION AND TRANSFERABILITY OF SHARES

Art. 20. Transfer and redemption of shares, total or partial, shall be permitted in the following cases:

I - under the conditions established by Law No. 9.491/97 and Decree No. 2.430/97, which shall appear in the authorization document to be issued by the FGTS operating agent;

II - every six-month period from the date of payment of each share, for total or partial transfer of the investment to another Privatization Mutual Fund - FGTS or to an Investment Club - FGTS;

III - after twelve months have elapsed from the date of payment of the share, for return to the FGTS;

II – after the minimum period of six months has elapsed, counted from the effective transfer of resources to the Privatization Mutual Fund – FGTS chosen, for total or partial transfer of the investment to another Privatization Mutual Fund – FGTS or to an Investment Club – FGTS;

III – after twelve months have elapsed from the date of the partial conversion of the participant's FGTS balance into shares of the Privatization Mutual Fund, for return to the FGTS;

• Wording given by CVM Instruction No. 354, of July 24, 2001.

IV - for redemption by Investment Club - FGTS, up to the limit of five percent of the shares of the Club.

§1º In the redemption request, the shareholder shall indicate the amount in reais or the number of shares to be redeemed and, as applicable, the Fund or Club to which they intend to transfer the corresponding resources or return to the FGTS.

§2º When the investment is transferred to another Fund or Club, the originating administering institution shall transfer the resources on the redemption date, through a credit document which shall state the date of initial payment in favor of the receiving administering institution, which shall proceed with the immediate subscription and payment of shares.

§3º When the case of return to the FGTS occurs, the administering institution shall transfer the resources through settlement, in cash, at the CEF branches, through the document established for this purpose by the FGTS operating agent.

§4º Whenever the case provided for in item II of this article occurs, the Fund administrator must inform the FGTS operating agent, within a maximum period of five business days, of the movements carried out.

Art. 21. Redemption shall be made at the closing value of the share on the day following the redemption request, and the same shall be effected within a maximum period of five business days, counted from the date of formalization of the request.

ON THE COMPOSITION AND DIVERSIFICATION OF THE PORTFOLIO

Art. 22. The Privatization Mutual Fund - FGTS shall maintain its assets invested exclusively in:

I - securities acquired within the scope of the National Privatization Program, instituted by Law No. 8.031/90, or State Privatization Programs, with the approval of the CND;

II - securities of open companies, traded on a stock exchange, over-the-counter market organized by an institution authorized by the CVM, or subject to a public offering registered with the CVM;

III - fixed-income titles, private or federal public, up to the limit of 49% of the Fund's Net Asset Value;

IV - positions in organized markets for future settlement, involving contracts referenced in stocks or stock indices, with the exclusive objective of protecting positions held spot, up to the limit of these.

I – securities acquired in a public offering within the scope of the National Privatization Program, regulated by Law No. 9.491, of September 9, 1997, and by Decree No. 2.430, of December 17, 1997, or State Privatization Programs, with the approval of the CND;

II – fixed-income titles, private or federal public, up to the maximum limit of ten percent of the Fund's net asset value.

• Wording given by CVM Instruction No. 337, of May 15, 2000.

§1º The Fund's first acquisition shall be in securities listed in item I of this article.

§2º Investment in titles and securities issued by the administering institution of the Fund or issued by a controlling, affiliated, controlled company, by a company part of the same corporate group or by groups of companies, or by a consortium company of the administering institution's group shall not be permitted.

§3º Only securities of open companies or which come to be registered with the CVM as such, by virtue of an obligatory clause in the Privatization Tender, may be acquired.

Sole Paragraph. The Fund's first acquisition shall be in the manner provided for in item I of this article and shall have as its object securities issued by a single open company or which come to be registered with the CVM as such, by virtue of an obligatory clause in the Privatization Tender.

• Wording given by CVM Instruction No. 337, of May 15, 2000.

§1º The Fund's first acquisition of securities shall be in the manner provided for in item I of this article and shall have as its object securities issued by a single open company or which come to be registered with the CVM as such, by virtue of an obligatory clause in the Privatization Tender.

§2º The Fund may acquire, on a stock exchange or in an organized over-the-counter market, shares issued by the issuing company of the securities that make up its portfolio.

• Wording given by CVM Instruction No. 339, of June 21, 2000.

§1º The Fund's first acquisition of securities shall be in the manner provided for in item I of this article and shall have as its object securities from a single issuer.

§2º The Fund may acquire, on a stock exchange or in an organized over-the-counter market, securities issued by the same issuer as the securities already in its portfolio.

§3º Resources resulting from transfers from other Privatization Mutual Funds – FGTS, occurring before the financial settlement of securities acquired within the scope of the National Privatization Program or State Privatization Programs, shall be invested obligatorily in private or federal public fixed-income titles.

§4º If after the Fund's first acquisition of securities, investments in fixed-income titles represent more than ten percent of the Fund's net assets, it shall decrease to fit within the said limit within a period of 180 (one hundred and eighty) days, counted from the financial settlement of securities acquired within the scope of the National Privatization Program or State Privatization Programs.

• Wording given by CVM Instruction No. 360, of January 29, 2002.

Art. 23. During the six-month period after the acquisition of a security within the scope of the National Privatization Program and State Privatization Programs, the administrator may alienate, at most, ten percent of the initially acquired value.

§1º This percentage may be exceeded in the cases provided for in items I to IV and VI to XI of art. 20 of Law No. 8.036, of May 11, 1990, with the wording given by Law No. 9.491/97, as well as in the case provided for in Law No. 7.670, of September 8, 1988.

§2º During the period mentioned in the caput of this article, the Fund may maintain positions in organized markets for future settlement, in accordance with the provisions of item IV of art. 22 of this Instruction.

Sole Paragraph - This percentage may be exceeded in the cases provided for in items I to IV and VI to XI of art. 20 of Law No. 8.036, of May 11, 1990, with the wording given by Law No. 9.491/97, as well as in the case provided for in Law No. 7.670, of September 8, 1988.

• Wording given by CVM Instruction No. 339, of June 21, 2000.

Art. 23 A. The Privatization Mutual Fund - FGTS Free Portfolio shall maintain its assets invested exclusively in:

I - securities of open companies, traded on a stock exchange, over-the-counter market organized by an institution authorized by the CVM, or subject to a public offering registered with the CVM;

II - fixed-income titles, private or federal public, up to the limit of 49% of the Fund's Net Asset Value;

III - positions in organized markets for future settlement, involving contracts referenced in stocks or stock indices, with the exclusive objective of protecting positions held spot, up to the limit of these;

• Wording given by CVM Instruction No. 337, of May 15, 2000.

IV – shares of investable funds in market index investment, regulated by the CVM.

• Item included by CVM Instruction No. 360, of January 29, 2002.

Sole Paragraph. Investment in titles and securities issued by the administering institution of the Fund or issued by a controlling, affiliated, controlled company, by a company part of the same corporate group or by groups of companies, or by a consortium company of the administering institution's group shall not be permitted.”

• Wording given by CVM Instruction No. 337, of May 15, 2000.

§1 Investment in titles and securities issued by the administering institution of the Fund or issued by a controlling, affiliated, controlled company, by a company part of the same corporate group or by groups of companies, or by a consortium company of the administering institution's group shall not be permitted.

§2º Investments or operations in fixed income, pre or post fixed, or synthesized via any other instruments, whose yields can be estimated at the time of their realization, are limited to forty-nine percent of the Fund's net assets.

• Paragraph included by CVM Instruction No. 354, of July 24, 2001.

§3º The Privatization Mutual Fund – FGTS Free Portfolio shall fit within the limit provided for in item II of this article, within a maximum period of 60 (sixty) days after the start of its activities.

• Paragraph included by CVM Instruction No. 360, of January 29, 2002.

ON FINANCIAL STATEMENTS

Art. 24. The Fund shall have its own accounting records, distinct from those of the administering institution, and shall prepare a trial balance at the end of each month and annual balance sheets.

• Art. 24. with wording given by CVM Instruction No. 604, of December 13, 2018.

Art. 25. The Fund's financial statements, relating to periods ending on March 31 and September 30, are subject to accounting standards issued by the CVM and shall be audited semi-annually by an independent auditor registered therein.

Art. 25. The Fund's financial statements relating to the period ending on March 31 are subject to accounting standards issued by the CVM and shall be audited annually by an independent auditor registered therein.

• Art. 25. with wording given by CVM Instruction No. 604, of December 13, 2018.

Sole Paragraph. The opinion of the independent auditor, relating to the financial statements, the report on the analysis of the Fund's situation, and the administrator's performance, shall express itself on compliance with the standards of this Instruction and the Fund's regulations.

§1 The opinion of the independent auditor, relating to the financial statements, the report on the analysis of the Fund's situation, and the administrator's performance, shall express itself on compliance with the standards of this Instruction and the Fund's regulations.

§2 The financial statements referred to in the caput of this article are mandatory only for funds in activity for more than ninety days.

• Wording given by CVM Instruction No. 347, of September 29, 2000.

ON PROHIBITIONS

Art. 26. It is prohibited to the administering institution, in the name of the Fund:

I - to receive deposits in a checking account;

II - to contract or make loans, under any modality, except as provided in art. 28 of this Instruction;

III - to provide guarantee, aval, acceptance, or co-obligate in any other form;

IV - to acquire or sell, outside the stock exchange trading floor or organized over-the-counter market, shares of open companies for registration in these markets, except for the cases of auctions of the National Privatization Program or State Privatization Programs, subscriptions, and bonuses, regarding the acquisition, observed the provisions of § 3 of art. 22 of this Instruction;

IV – acquire or sell, outside the stock exchange trading floor or organized over-the-counter market, shares of open companies for registration in these markets, except for the cases of auctions of the National Privatization Program or State Privatization Programs, subscriptions, and bonuses, regarding the acquisition, observed the provisions of §1 of art. 22 of this Instruction.

• Wording given by CVM Instruction No. 339, of June 21, 2000.

Art. 27. It is prohibited to the administering institution:

I - to sell fund shares on credit;

II - to delegate powers to third parties to manage the Fund's portfolio, except with specific authorization from the CVM;

III - to promise predetermined returns to shareholders;

IV - to operate, directly or indirectly, on the counterparty of the Fund's operations.

Art. 28. The values comprising the Fund's portfolio shall not be subject to leasing, loans, pledge, or lien, except in the modalities expressly authorized by the CVM.

ON THE CHARGES OF THE FUND

Art. 29. The following expenses shall constitute charges of the Fund, in addition to the remuneration referred to in art. 5:

I - taxes, federal, state, municipal, or autonomous fees or contributions, which fall or may fall upon the assets, rights, or obligations of the Fund;

II - expenses with printing, mailing, and publication of reports and financial statements, forms, and periodic information, provided for in this Instruction or in pertinent regulation;

III - expenses with correspondence of interest to the Fund, such as summonses or communications to shareholders;

IV - fees and expenses of independent auditors responsible for reviewing the Fund's financial statements, analyzing its situation, and the performance of the administering institution;

V - emoluments and commissions paid for purchase and sale operations of the Fund's titles and securities;

VI - lawyers' fees, court costs, and related expenses incurred due to the defense of the Fund's interests, in Court or out of it, including the value of the condemnation imputed to the Fund, if applicable;

VII - portion of eventual losses not covered by insurance policies and not resulting directly from fault or negligence of the administering institution in the exercise of its functions;

VIII - any expenses inherent to the liquidation of the Fund or to the holding of a General Assembly of shareholders;

IX - expenses related to the payment for custody services of the Fund's titles and securities.

§1º Any advantages gained by the administrators, as a result of the Fund's operations, shall be reverted for its benefit.

§2º Other expenses not provided for in this Instruction shall not be imputed as charges of the Fund.

ON INFORMATION

Art. 30. The administering institution shall send to the CVM, within a maximum period of fifteen days after the end of the period to which they refer, without prejudice to others that may be required, the following documents relating to the Fund:

I - monthly:

a) trial balance;

• Clause revoked by CVM Instruction No. 518, of January 23, 2012.
  b) statements showing the composition and diversification of investments; c) statement of sources and uses of resources, which must include information regarding transfers of unitholders to and from other funds. c) REVOKED
• Clause c revoked by CVM Instruction No. 604, of December 13, 2018.
  II - semi-annually:
  II – annually:
• Item II with wording given by CVM Instruction No. 604, of December 13, 2018.
  a) balance sheets, allowing the submission, within a maximum period of sixty days after the end of the period to which they refer, of the audit report on the financial statements relating to the semester; a) within a period of 90 (ninety) days counted from the end of the fiscal year to which they refer, the financial statements accompanied by the report of the independent auditor;
• Clause a with wording given by CVM Instruction No. 604, of December 13, 2018.
  b) copies of the information provided to unitholders; c) list of the institution(s) responsible for providing custody services for the securities and financial assets comprising the portfolio; d) list of judicial or extrajudicial claims, whether in defense of unitholders' rights or by them against the Fund administration, indicating the date of their initiation and the stage at which they are. Art. 30 A. The administering institution must comply with the provisions of art. 66, item I, of CVM Instruction No. 302/99.
• Wording given by CVM Instruction No. 337, of May 15, 2000.
  Art. 30-A. The administering institution must comply with the provisions of art. 66, item I, of CVM Instruction No. 302, of May 5, 1999, and additionally, in the case of administering Privatization Mutual Funds – FGTS Free Portfolio, arts. 67 and 68 of the Said Instruction.
• Wording given by CVM Instruction No. 354, of July 24, 2001.
  Art. 30-B The following documents must be sent, through the information reception system available on the CVM's website on the worldwide computer network:
  I – Daily Report, according to the model attached to this Instruction, within a period of 2 (two) business days after the day to which the information refers;

II – Monthly Balance Sheet, within a period of 15 (fifteen) days after the end of the month to which it refers; III – Fund regulations in force, whenever there is an alteration, within a period of 10 (ten) days counted from the date of approval by the CVM of what was decided by the assembly; and IV – Fund prospectus in force, whenever there is an alteration, within a period of 10 (ten) days counted from its effective date.

• Article included by CVM Instruction No. 518, of January 23, 2012.
  Art. 31. The administering institution must, semi-annually, within a maximum period of fifteen days after the end of the period, publicly disclose, through publication in the periodical(s) used for the disclosure of the Fund's information:
  I - statement of the composition and diversification of investments; II - return earned in the last four semesters.
  Art. 31. The administrator must, within a maximum period of fifteen days after the end of each semester, make available to any interested party, at its headquarters or premises, information on the Fund's portfolio composition and the return earned in the last four semesters.
• Wording given by CVM Instruction No. 347, of September 29, 2000.
  Art. 32. The administering institution must ensure that the net value of the share, after appropriate fees, the net asset value, and the Fund's administration fee are disclosed daily in the press.
  Art. 32. The administering institution must disclose on its website on the worldwide computer network, daily, the net value of the share, after appropriate fees, the net asset value, and the Fund's administration fee.
• Art. 32. with wording given by CVM Instruction No. 604, of December 13, 2018.
  Art. 33. The administering institution must send to each unitholder, monthly, within fifteen days after the end of the month, a document containing the following information:
  Art. 33. The administering institution must send to each unitholder, bimonthly, within fifteen days after the end of the bimonthly period, a document containing the following information:
  a) number of shares held and their value; b) return earned in the previous month; b) the return earned in each of the months of the previous bimonthly period;
• Wording given by CVM Instruction No. 339, of June 21, 2000.
  c) value and composition of the portfolio, discriminating quantity, type, and quotation of the securities and financial assets that comprise it, value of each investment and its percentage of the total portfolio value;

d) remuneration of the administering institution; e) other relevant information regarding the Fund.
Sole Paragraph. The administering institution must send, semi-annually, to each unitholder:
Sole Paragraph. The administering institution must send, annually, to each unitholder:

• Sole Paragraph with wording given by CVM Instruction No. 604, of December 13, 2018.
  I - the balance sheet and other financial statements, relating to the period, accompanied by the opinion of the independent auditor; and II - information on the value of charges debited to the Fund in each of the last two years, as provided in art. 29 of this Instruction, specifying their value and percentage relative to the Fund's average annual net asset value, in each year. III - return earned in the last four semesters.

• Item included by CVM Instruction No. 347, of September 29, 2000.
  III – REVOKED

• Item III revoked by CVM Instruction No. 604, of December 13, 2018.
  FINAL PROVISIONS
  Art. 34. While the CVM does not disclose the norms referred to in arts. 15, 18, § 4º, and 25 of this Instruction, the provisions of COSIF - Accounting Plan of the Financial System, issued by the Central Bank of Brazil, apply to the Fund. Art. 35. The provisions of art. 11 of Law No. 6.385/76 apply to the administering institution and its administrators responsible for the Fund's administration, regardless of other legal sanctions potentially applicable. Art. 36. The administering institution that fails to send to the CVM the information provided for in this Instruction will be subject to a daily fine of R$ 500.00 (five hundred reais), which will accrue from the day following the end of the period provided for compliance with the obligation, without prejudice to the liability of the administrators, provided for in arts. 9º, V, and 11 of Law No. 6.385/76, with the wording given by Law No. 9.457, of May 5, 1997. Art. 36. Without prejudice to the provisions of art. 11 of Law No. 6.385, of 1976, the administering institution that fails to send to the CVM the information provided for in this Instruction will be subject to the daily fine provided for in the specific norm dealing with coercive fines. Sole Paragraph. The daily fine referred to in the caput does not apply to the daily report, but the CVM may determine the administrator's liability under the terms of art. 11 of Law No. 6.385, of 1976, if the information is not sent within the period provided for in item I of art. 30-B.

• Art. 36 with wording given by CVM Instruction No. 609, of June 25, 2019.
  Art. 37. Considered a serious infraction, for the purposes of art. 11, § 3º, of Law No. 6.385/76, with the wording given by Law No. 9.457/97, is the transgression of the content in arts. 3º, 9º, 10 and 20 of this Instruction, except those relating to arts. 8º and 21 to 33 which constitute a hypothesis of infraction of an objective nature for the purposes of the summary procedure of the administrative process. Art. 37-A The CVM may grant provisional authorization for the operation of a Privatization Mutual Fund – FGTS. Sole Paragraph. The CVM may, within a period of ninety days from the provisional authorization, request documents, additional information or modifications in the documentation presented, as well as request the correction of procedures in disagreement with current legislation, for the purposes of granting definitive authorization.

• Article included by CVM Instruction No. 339, of June 21, 2000.
  Art. 38. This Instruction enters into force on the date of its publication in the Official Gazette of the Union.
  Original signed by
  FRANCISCO DA COSTA E SILVA
  President

• Annex added by CVM Instruction No. 518, of January 23, 2012.
  Annex 30-B
  DAILY REPORT
  Daily Report
  Fund Name:
  CNPJ
  Reference Date: DD/MM/YYYY total portfolio - in Real units, with cents (R$ 1.00) net asset value - in Real units, with cents (R$ 1.00) share value captures - in Real units, with cents (R$ 1.00) redemptions - in Real units, with cents (R$ 1.00) number of unitholders CPF/CNPJ of unitholder with investment greater than or equal to 20% of the Fund's NAV and respective participation % * CPF/CNPJ of unitholder with investment greater than or equal to 20% of the Fund's NAV and respective participation % * CPF/CNPJ of unitholder with investment greater than or equal to 20% of the Fund's NAV and respective participation % * CPF/CNPJ of unitholder with investment greater than or equal to 20% of the Fund's NAV and respective participation % * CPF/CNPJ of unitholder with investment greater than or equal to 20% of the Fund's NAV and respective participation % * Obs.: Fields marked with * must be informed only when requested by the CVM.