CVM Instruction No. 295 of December 2, 1998 (Revoked)

CVM INSTRUCTION NO. 295, OF DECEMBER 2, 1998.

Amends CVM Instruction No. 279, of May 14, 1998, which regulates the constitution, administration, and operation of Privatization Mutual Funds – FGTS intended for the acquisition of securities, using available resources from the linked account of the Time Service Guarantee Fund – FGTS.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Body, in a meeting held on November 18, 1998, in accordance with the provisions of item I of Article 8 of Law No. 6,385, of December 7, 1976, Law No. 9,491, of September 9, 1997, Law No. 9,635, of May 15, 1998, and Decree No. 2,430, of December 17, 1997, RESOLVED to issue the following Instruction:

Art. 1 This Instruction amends Article 4 of CVM Instruction No. 279, of May 14, 1998, which provides for the constitution, administration, and operation of Privatization Mutual Funds – FGTS intended for the acquisition of securities, using available resources from the linked account of the Time Service Guarantee Fund – FGTS.

Art. 2 The wording of the aforementioned Article 4 shall be as follows:

“Article 4 The administration of the Privatization Mutual Fund – FGTS shall be exercised exclusively by a savings bank, a multiple bank with an investment portfolio, an investment bank, a brokerage firm, or a distributor, which are authorized by the CVM to practice the activity provided for in Article 23 of Law No. 6,385, of December 7, 1976, and possess paid-in capital and net worth not lower 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).

§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 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, designated as responsible for portfolio administration before the CVM.

§3 The fund’s regulations may provide for mechanisms for cotista participation in administrative decisions related to the fund, without burden to the fund, under the conditions stipulated in the regulations, 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 registration and securities custody services:

a) the registration of the issuance and redemption of shares;

b) treasury services, such as those listed below:

1. opening and movement of 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 operations of the fund;

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 Articles 30 to 33 of this Instruction.

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

Art. 3 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