CVM Instruction No. 293 of October 30, 1998

CVM INSTRUCTION NO. 293, OF OCTOBER 30, 1998

Amends CVM Instruction No. 276, of May 8, 1998, which provides for the procedures to be adopted for the adaptation of electronic systems aimed at the correct processing of dates subsequent to the year 1999.

The President of the Securities and Exchange Commission - CVM makes public that the Collegiate Body, in a meeting held on this date, in view of the provisions of Art. 8, items I and III, of Law No. 6,385, of December 7, 1976, HAS DECIDED to issue the following Instruction:

Art. 1 This Instruction amends CVM Instruction No. 276, of May 8, 1998, which provides for the procedures to be adopted by participants in the securities market for the adaptation of electronic systems aimed at the correct processing of dates subsequent to the year 1999.

Art. 2 Art. 1 of CVM Instruction No. 276/98 shall be effective with the following wording:

“Art. 1 Participants in the securities market must adapt their automated electronic systems, aimed at the correct processing of dates subsequent to the year 1999, within the following deadlines:

I - stock exchanges and futures exchanges, clearing and settlement houses, providers of services for the issuance of certificates, bookkeeping and custody of securities, by January 31, 1999;

II - administrators of investment funds under the jurisdiction of the CVM, by March 31, 1999;

III - publicly-held companies, by June 30, 1999.”

Art. 3 Art. 2 of CVM Instruction No. 276/98 shall be effective with the following wording:

“Art. 2 The institutions and societies referred to in the previous article must disclose, through the usual means they use, and send to the CVM information on the progress of the process, also sending a complete report after the conclusion of the transformation or adaptation process of their electronic data systems determined in Art. 1.

§1º Publicly-held companies must disclose the information in an explanatory note attached to the Financial Statements and Quarterly Information - ITRs, which must contain, at minimum:

I - the nature and amounts of expenses and investments made in the period and those that still need to be made;

II - the measures adopted for the adjustment of their systems and the progress of the corresponding work;

III - the possible effects on business and the risks involved;

IV - inventory of information related to equipment and computer programs;

V - test plan and implementation schedule.

§2º In the case of administrators of investment funds whose constitution and operation are authorized by the CVM, the Financial Statements or the administrators' report must contain an explanatory note on the procedures carried out, in progress, or on the non-adoption of any measures, related to the adaptation referred to in Art. 1.

§3º The conclusive report must be disclosed and sent to the CVM within thirty days after the deadline determined in Art. 1 of this Instruction, containing, at minimum:

I - impact assessment, risk analysis and prioritization of systems;

II - degree of commitment and involvement of third parties;

III - results of the tests prepared;

IV - contingency procedures plan.”

Art. 4 Art. 8 of CVM Instruction No. 276/98 shall be effective with the following wording:

“Art. 8 Failure to comply with the obligations contained in Art. 2 of this Instruction entails the application of a daily coercive fine, which will apply from the first business day following the end of the deadline for delivering the information, regardless of notification, in the amount of R$ 100.00 (one hundred reais).”

Art. 5 This Instruction enters into force on the date of its publication in the Official Gazette of the Union, revoking Art. 5 of CVM Instruction No. 276/98.

Signed original by

FRANCISCO DA COSTA E SILVA
President