CVM Instruction No. 301 of April 16, 1999 (Revoked)

FULL TEXT OF CVM INSTRUCTION NO. 301, OF APRIL 16, 1999, WITH CHANGES INTRODUCED BY CVM INSTRUCTIONS NO. 463/08, 506/11, 523/12, 534/13 AND 553/14.

Provides for the identification, registration, record-keeping, operations, communication, limits and administrative liability dealt with in items I and II of art. 10, I and II of art. 11, and arts. 12 and 13, of Law No. 9,613, of March 3, 1998, regarding the crimes of "money laundering" or concealment of assets, rights and values.

Provides for the identification, registration, record-keeping, operations, communication, limits and administrative liability dealt with in arts. 10, 11, 12 and 13 of Law No. 9,613, of March 3, 1998, regarding the crimes of "money laundering" or concealment of assets, rights and values.

• Summary with wording given by CVM Instruction No. 534, of June 4, 2013.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Board, in a meeting held on this date, in view of Law No. 6,385, of December 7, 1976, as well as the provisions of arts. 9, 10, 11, 12 and 13 of Law No. 9,613, of March 3, 1998, and in the sole paragraph of art. 14 of the Annex to Decree No. 2,799, of October 8, 1998, resolved to issue the following Instruction:

ON SCOPE AND PURPOSE

Art. 1. The provisions of this Instruction regulate the identification and registration of clients, the record-keeping of transactions and the limit dealt with in items I and II of art. 10, the operations, communication and limit referred to in items I and II of art. 11, and the administrative liability provided for in arts. 12 and 13, all provisions of Law No. 9,613, of March 3, 1998, which deals with the crimes of "money laundering" or concealment of assets, rights and values, including with regard to the prevention of the use of the financial system for the practice of such illicit acts.

Art. 1. The provisions of this Instruction regulate the identification and registration of clients, the record-keeping of transactions and the limit dealt with in items I and II of art. 10, the monitoring and communication of operations and the limit referred to in items I and II of art. 11, and the administrative liability provided for in arts. 12 and 13, all provisions of Law No. 9,613, of March 3, 1998, which deals with the crimes of "money laundering" or concealment of assets, rights and values, including with regard to the prevention of the use of the financial system for the practice of such illicit acts.

• Wording given by CVM Instruction No. 523, of May 28, 2012.

CVM INSTRUCTION NO. 301, OF APRIL 16, 1999

Art. 1. The provisions of this Instruction regulate the identification and registration of clients, the record-keeping of transactions and the value limit, as well as the policies, procedures and internal controls for controlling operations and the registration of clients dealt with in items I, II and III of art. 10, the monitoring and communication of operations and the limit referred to in items I to III of art. 11, and the administrative liability provided for in arts. 12 and 13, all provisions of Law No. 9,613, of March 3, 1998, which deals with the crimes of "money laundering" or concealment of assets, rights and values, including with regard to the prevention of the use of the financial system for the practice of such illicit acts.

Art. 2. The obligations provided for in this Instruction apply to legal entities that have, on a permanent or occasional basis, as their main or ancillary activity, cumulatively or not, the custody, issuance, distribution, settlement, negotiation, intermediation or administration of securities or financial assets, as well as stock exchanges, organized over-the-counter market entities and commodity or futures exchanges, in addition to the other persons referred to in art. 9 of Law No. 9,613/98, which are under the discipline and supervision exercised by the CVM, and the administrators of legal entities.

• Art. 1 with wording given by CVM Instruction No. 534, of June 4, 2013.

Art. 2. The obligations provided for in this Instruction apply to legal entities that have, on a permanent or occasional basis, as their main or ancillary activity, cumulatively or not, the custody, issuance, distribution, settlement, negotiation, intermediation or administration of securities or financial assets, as well as entities administering organized stock and over-the-counter markets, in addition to the other persons referred to in art. 9 of Law No. 9,613/98, which are under the discipline and supervision exercised by the CVM, and the administrators of legal entities.

• Wording given by CVM Instruction No. 463, of January 08, 2008.

Art. 2. The obligations provided for in this Instruction apply to:
I – persons who have, on a permanent or occasional basis, as their main or ancillary activity, cumulatively or not, the custody, issuance, distribution, settlement, negotiation, intermediation, consulting or administration of securities or financial assets and independent auditing within the securities market; II – entities administering organized markets; and III – the other persons referred to in art. 9 of Law No. 9,613, of 1998, which are under the discipline and supervision exercised by the CVM.”

• Art. 2 with wording given by CVM Instruction No. 534, of June 4, 2013.

ON CLIENT IDENTIFICATION AND REGISTRATION

Art. 3. For the purposes of the provision of art. 10, item I, of Law No. 9,613/98, the persons mentioned in art. 2 of this Instruction shall identify their clients and maintain an updated register of them.

CVM INSTRUCTION NO. 301, OF APRIL 16, 1999

§1. Without prejudice to the provision of CVM Instruction No. 220, of September 15, 1994, any client register must contain, at a minimum, the following information:

§ 1. Without prejudice to the provision of CVM Instruction No. 387, of April 28, 2003, the client register must contain, at a minimum, the following information:

• Wording given by CVM Instruction No. 463, of January 08, 2008.

I – if a natural person:
a) full name, sex, date of birth, place of birth, nationality, marital status, parentage and name of spouse or partner; b) nature and number of identification document, name of issuing authority and date of issue; c) number of registration in the Natural Persons Register (CPF/MF); d) full address (street, complement, neighborhood, city, state and ZIP code) and phone number; e) professional occupation; and f) information regarding income and financial situation.

II – if a legal entity:
a) the corporate name or trade name; b) names of controllers, administrators and attorneys; c) number of business registration (NIRE) and in the National Register of Legal Entities (CNPJ); d) full address (street, complement, neighborhood, city, state and ZIP code) and phone number; e) main activity developed; f) information regarding respective financial and asset situation; and g) corporate name or trade name of controlling, controlled or affiliated legal entities.

III - in other cases:
a) the complete identification of clients and their representatives and/or administrators; and b) information regarding respective financial and asset situation.

§2. Clients must immediately communicate any changes to their registration data.

CVM INSTRUCTION NO. 301, OF APRIL 16, 1999

§ 3. The persons mentioned in art. 2 of this Instruction must promote the update of the registration files of active clients in periods not exceeding 24 months.

• § 3 added by CVM Instruction No. 463, of January 08, 2008.

§ 1. The persons referred to in art. 2 must register their clients containing, at a minimum, the information and documents indicated in Annex I.

§ 2. The persons referred to in art. 2 must update the registration data of active clients at intervals not exceeding 24 (twenty-four) months.

§ 3. For the purposes of this Instruction, an active client is considered to be one who has made movements or has a balance in their account in the 24-month period following the date of the last update.

• §§1 to 3 with wording given by CVM Instruction No. 506, of September 27, 2011.

§ 4. New movements of accounts owned by inactive clients will only be permitted upon the update of their respective registers.

§ 5. The CVM Board may authorize the adoption of alternative registration systems, provided they meet the objectives of current regulations and adopt verifiable procedures.

§ 6. Clients must immediately communicate any changes to their registration data.

• §§4 to 6 included by CVM Instruction No. 506, of September 27, 2011.

Art. 3-A. The persons mentioned in art. 2 shall:

I - adopt control measures, according to previously and expressly established procedures, which seek to confirm the registration information of their clients, in order to avoid the use of the account by third parties and identify the beneficial owners of the operations;

I – continuously adopt rules, procedures and internal controls, according to previously and expressly established procedures, aiming to confirm the registration information of their clients, keep them updated, and monitor the operations carried out by them, in order to avoid the use of the account by third parties and identify the beneficial owners of the operations;

• Item I with wording given by CVM Instruction No. 523, of May 28, 2012.

II - identify persons considered politically exposed;

III – supervise more rigorously the business relationship maintained with a politically exposed person; and

CVM INSTRUCTION NO. 301, OF APRIL 16, 1999

IV – pay special attention to proposals for the start of a relationship and to operations carried out with politically exposed persons from countries with which Brazil has a high number of financial and commercial transactions, common borders or ethnic, linguistic or political proximity.

III – supervise more rigorously the business relationship maintained with a politically exposed person;

IV – pay special attention to proposals for the start of a relationship and to operations carried out with politically exposed persons, including those from countries with which Brazil has a high number of financial and commercial transactions, common borders or ethnic, linguistic or political proximity;

• Items III and IV with wording given by CVM Instruction No. 523, of May 28, 2012.

V – maintain rules, procedures and internal controls to identify clients who became politically exposed persons after the start of the relationship with the institution or who are found to have already been politically exposed persons at the start of the relationship with the institution and apply the same treatment as items III and IV; and

VI – maintain rules, procedures and internal controls to identify the origin of the resources involved in the transactions of clients and beneficiaries identified as politically exposed persons.

• Items V and VI included by CVM Instruction No. 523, of May 28, 2012.

Sole Paragraph. In the case of a business relationship between the persons mentioned in art. 2 and a foreign client who is also a client of a foreign institution supervised by a government authority similar to the CVM, it is admitted that the measures provided for in this Instruction are adopted by the foreign institution, provided that the CVM is assured access to the data and procedures adopted.

§ 1. In the case of a business relationship between the persons mentioned in art. 2 and a foreign client who is also a client of a foreign institution supervised by a government authority similar to the CVM, it is admitted that the measures provided for in this Instruction are adopted by the foreign institution, provided that the CVM is assured access to the data and procedures adopted.

• Original sole paragraph renumbered to § 1 by CVM Instruction No. 553, of October 16, 2014.

§ 2. The institutions referred to in art. 2 must only start any business relationship or continue an existing relationship with the client if the measures established in arts. 3 and 3-A are observed, as applicable.

• § 2 included by CVM Instruction No. 553, of October 16, 2014.

Art. 3-B For the purposes of the provision of this Instruction, it is considered:

I – a politically exposed person is one who holds or has held, in the last 5 (five) years, relevant public offices, jobs or functions, in Brazil or in other countries, territories and

CVM INSTRUCTION NO. 301, OF APRIL 16, 1999

foreign dependencies, as well as their representatives, family members and other persons in their close relationship.

II – relevant public office, job or function exercised by heads of state and government, high-level politicians, high-ranking public servants, magistrates or high-ranking military personnel, executives of public companies or executives of political parties; and

II – family members of the politically exposed person, their relatives, in the direct line, up to the first degree, as well as the spouse, partner and stepchild.

§1. The 5 (five) year period referred to in item I must be counted retroactively from the date of the start of the business relationship or the date on which the client came to be classified as a politically exposed person.

§2. Without prejudice to the definition of item I of the main text of this article, the following are considered, in Brazil, politically exposed persons:

I - holders of elective mandates of the Executive and Legislative Powers of the Union;

II - occupants of office, in the Executive Power of the Union:
a) of State Minister or equivalent; b) of special nature or equivalent; c) of President, Vice-President and director, or equivalents, of autarchies, public foundations, public companies or mixed-economy companies; or d) of the senior direction and advisory group - DAS, level 6, and equivalents;

III - members of the National Council of Justice, the Federal Supreme Court and the superior courts;

IV - members of the National Council of the Public Ministry, the Attorney General of the Republic, the Deputy Attorney General of the Republic, the Attorney General of Labor, the Attorney General of Military Justice, the Deputy Attorneys General of the Republic and the Attorneys General of Justice of the States and the Federal District;

V - members of the Court of Accounts of the Union and the Attorney General of the Public Ministry before the Court of Accounts of the Union;

VI - Governors of States and the Federal District, Presidents of Courts of Justice, Legislative Assemblies and District Chambers and Presidents of Courts and Councils of Accounts of States, Municipalities and the Federal District; and

VII - Mayors and Presidents of Municipal Chambers of State capitals.

• Arts. 3-A and 3-B added by CVM Instruction No. 463, of January 08, 2008.

CVM INSTRUCTION NO. 301, OF APRIL 16, 1999

ON THE RECORD-KEEPING OF TRANSACTIONS AND THE RESPECTIVE LIMIT

Art. 4. For the purposes of the provision of art. 10, item II, of Law No. 9,613/98, the persons mentioned in art. 2 of this Instruction shall keep a record of every transaction involving securities or financial assets whose value is equal to or greater than ten thousand reais, in a form that allows for timely communication as referred to in art. 7 of this Instruction.

Sole paragraph. The record shall also be made, in the form of the main text of this article, when the natural person, legal entity or their affiliated entities, identified in the register provided for in this Instruction, carry out, in the same calendar month, operations with the same person, conglomerate or group, whose values, in total, exceed the specific limit now fixed.

Art. 4. The persons mentioned in art. 2 of this Instruction shall keep a record of every transaction involving securities or financial assets, regardless of their value, in order to allow:

I – the timely communication referred to in art. 7.

I - the timely communications referred to in arts. 7 and 7-A; and

• Item I with wording given by CVM Instruction No. 534, of June 4, 2013.

II – the verification of the financial movement of each client, based on a criterion defined in the institution's control procedures, in view of the asset and financial situation stated in their registration, considering:

II – the verification of the financial movement of each client, based on a criterion defined in the institution's rules, procedures and internal controls, in view of the asset and financial situation stated in their registration, considering:

Item II with wording given by CVM Instruction No. 523, of May 28, 2012.

a) the values paid as settlement of operations; b) the values or assets deposited as collateral, in operations in the future settlement markets; and c) the transfers of securities to the client's custody account.

• Wording given by CVM Instruction No. 463, of January 08, 2008.

ON THE RETENTION PERIOD OF REGISTERS AND RECORDS

Art. 5. The registers and records referred to, respectively, in arts. 3 and 4 of this Instruction, shall be kept, available to the CVM, for a minimum period of five years, from the closing of the account or the completion of the transaction.

CVM INSTRUCTION NO. 301, OF APRIL 16, 1999

Art. 5. The registers and records referred to, respectively, in arts. 3 and 4, as well as the documentation that proves the adoption of the procedures provided for in art. 3-A of this Instruction, shall be kept, available to the CVM, for a minimum period of 5 (five) years, from the closing of the account or the completion of the last transaction carried out in the name of the respective client, this period may be extended indefinitely in the event of an investigation formally communicated by the CVM to the person or institution.

• Wording given by CVM Instruction No. 463, of January 08, 2008.

ON THE COMMUNICATION OF OPERATIONS

ON THE MONITORING AND COMMUNICATION OF OPERATIONS

• Title with wording given by CVM Instruction No. 523, of May 28, 2012.

Art. 6. For the purposes of the provision of art. 11, item I, of Law No. 9,613/98, the persons mentioned in art. 2 of this Instruction shall pay special attention to the following operations involving securities or financial assets:

Art. 6. For the purposes of the provision of art. 11, item I, of Law No. 9,613, of 1998, the persons mentioned in art. 2 of this Instruction must continuously monitor the following operations or situations involving securities or financial assets:

• Main text with wording given by CVM Instruction No. 523, of May 28, 2012.

I - operations whose values appear objectively incompatible with the professional occupation, income and/or asset or financial situation of any of the parties involved, taking the respective registration information as a basis;

II - operations carried out, repeatedly, between the same parties, in which there are successive gains or losses with regard to any of the involved;

II - operations carried out between the same parties or for the benefit of the same parties, in which there are successive gains or losses with regard to any of the involved;

• Wording given by CVM Instruction No. 463, of January 08, 2008.

III - operations that show significant fluctuation in relation to the volume and/or frequency of business of any of the parties involved;

IV - operations whose developments include characteristics that may constitute a device to circumvent the identification of the actual parties involved and/or respective beneficiaries;

V - operations whose characteristics and/or developments show acting, in a habitual manner, in the name of third parties; and

CVM INSTRUCTION NO. 301, OF APRIL 16, 1999

VI - operations that show a sudden and objectively unjustified change relative to the operational modalities usually used by the involved party(ies);

VII – operations carried out for the purpose of generating loss or gain for which there is, objectively, no economic foundation;

VIII – operations with the participation of natural persons residing or entities constituted in non-cooperative countries and territories, in accordance with circular letters issued by the Financial Activities Control Council – COAF;

VIII – operations with the participation of natural persons residing or entities constituted in countries that do not apply or apply insufficiently the recommendations of the Financial Action Task Force against Money Laundering and Terrorist Financing - FATF;

• Item VIII with wording given by CVM Instruction No. 523, of May 28, 2012.

IX – operations settled in cash, if and when permitted;

X – private transfers, without apparent motivation, of resources and securities;

XI – operations whose degree of complexity and risk appear incompatible with the technical qualification of the client or their representative;

XII – deposits or transfers carried out by third parties, for the settlement of client operations, or for the provision of collateral in operations in the future settlement markets; and

XIII – payments to third parties, in any form, on account of the settlement of operations or redemption of values deposited as collateral, registered in the name of the client.

XII – deposits or transfers carried out by third parties, for the settlement of client operations, or for the provision of collateral in operations in the future settlement markets;

XIII – payments to third parties, in any form, on account of the settlement of operations or redemption of values deposited as collateral, registered in the name of the client;

• Items XII and XIII with wording given by CVM Instruction No. 523, of May 28, 2012.

XIV – situations in which it is not possible to keep the registration information of their clients up to date;

XV – situations and operations in which it is not possible to identify the beneficial owner; and

XVI – situations in which the diligence provided for in art. 3-A cannot be completed.

• Items XIV, XV and XVI included by CVM Instruction No. 523, of May 28, 2012.

§ 1. The persons mentioned in the main text of this article shall pay special attention to operations in which the following categories of clients participate:

CVM INSTRUCTION NO. 301, OF APRIL 16, 1999

I – non-resident investors, especially when constituted in the form of trusts and companies with bearer shares; II – investors with large fortunes managed by areas of financial institutions focused on clients with this profile (“private banking”); and III – politically exposed persons (art. 3º-B).

§ 2º. For the purposes of the provisions of this article, the persons mentioned in the caput must analyze the operations together with other related operations that may be part of the same group of operations or bear any type of relationship with each other.

• Items VII to XIII and §§ 1º and 2º included by CVM Instruction No. 463, of January 8, 2008.

Art. 7º For the purposes of the provisions of art. 11, item II, of Law No. 9.613/98, the persons mentioned in art. 2º of this Instruction must communicate to the CVM, within a period of twenty-four hours, counting from the occurrence that, objectively, allows it to do so:

I - all transactions covered by the records provided for in art. 4º of this Instruction, whose characteristics are exceptional with respect to the parties involved, method of execution and/or instruments used, or for which there is, objectively, no economic or legal basis, which may constitute serious indications of the crimes of “money laundering” or concealment of assets, rights and values, or related to them; and

II - the proposal or execution of a transaction covered by the provision in art. 6º of this Instruction.

Art. 7º For the purposes of the provisions of art. 11, item II, of Law No. 9.613/98, and Decree No. 5.640/05, the persons mentioned in art. 2º of this Instruction must communicate to the CVM, within a period of twenty-four hours counting from the occurrence that, objectively, allows it to do so, all transactions, or proposals for transactions, covered by the records provided for in art. 4º of this Instruction that may constitute serious indications of crimes of "money laundering" or concealment of assets, rights and values arising from the crimes listed in art. 1º of Law No. 9.613, of 1998, including terrorism or its financing, or related to them, in which:

Art. 7º For the purposes of the provisions of art. 11, item II, of Law No. 9.613, of 1998, and Decree No. 5.640, of December 26, 2005, the persons mentioned in art. 2º of this Instruction must communicate to the Financial Activities Control Council - COAF, refraining from informing any person, including the person to whom the information refers, within a period of 24 (twenty-four) hours counting from the occurrence that, objectively, allows it to do so, all transactions, or proposals for transactions, covered by the records provided for in art. 4º of this Instruction, which may be considered serious indications of crimes of "money laundering" or concealment of assets, rights and values arising from a criminal offense, as provided for in art. 1º of Law No. 9.613, of 1998, including terrorism or its financing, or related to them, in which:

• Caput with wording given by CVM Instruction No. 534, of June 4, 2013.

CVM INSTRUCTION NO. 301, OF APRIL 16, 1999

I - exceptional characteristics are verified with respect to the parties involved, method of execution or instruments used; or,

II - there is, objectively, no economic or legal basis.

• Wording given by CVM Instruction No. 463, of January 8, 2008.

§1º. The communications referred to in this article may be carried out using magnetic media, to the extent applicable, with the communicants refraining from informing their respective clients of such acts.

• §1º Revoked by CVM Instruction No. 534, of June 4, 2013.

§2º. Communications made in good faith will not, in accordance with the law, entail civil or administrative liability for the persons referred to in the caput of this article.

§ 3º. Operations related to terrorism or its financing are considered those carried out by persons who commit or plan to commit terrorist acts, who participate in them or facilitate their practice, as well as by entities belonging to or controlled, directly or indirectly, by such persons and the persons or entities that act under their command.

§4º. The communication provided for in the caput of this article must also inform whether it concerns a client considered as a politically exposed person.

• §§ 3º and 4º included by CVM Instruction No. 463, of January 8, 2008.

§ 5º. The records of the conclusions of their analyses regarding operations or proposals that supported the decision to make, or not, the communications referred to in the caput must be kept for a period of 5 (five) years, or for a longer period by express determination of the CVM, in the case of an administrative process.

• §5º included by CVM Instruction No. 523, of May 28, 2012.

Art. 7º-A For the purposes of the provisions of art. 11, item III, of Law No. 9.613, of 1998, the persons mentioned in art. 2º of this Instruction, provided that no communication referred to in the caput of art. 7º has been made to the Financial Activities Control Council – COAF, must communicate to the CVM, annually, until the last business day of the month of January, through an electronic system available on the CVM's website on the worldwide computer network, the non-occurrence in the previous calendar year of the transactions or proposals for transactions subject to communication, in accordance with art. 7º.

§1º. The communication referred to in this article will be protected by confidentiality.

§ 2º. The Securities and Exchange Commission may enter into an agreement with the Financial Activities Control Council – COAF and other regulatory bodies for the purpose of receiving the information referred to in the caput.

• Article 7º-A included by CVM Instruction No. 534, of June 4, 2013.

CVM INSTRUCTION NO. 301, OF APRIL 16, 1999

ADMINISTRATIVE LIABILITY

Art. 8º. To the persons mentioned in art. 2º of this Instruction who fail to comply with the obligations provided for in arts. 10 and 11 of Law No. 9.613/98 and in this Instruction, the sanctions of art. 12 of Law No. 9.613/98 will be applied, cumulatively or not, in the manner provided for in the Annex to Decree No. 2.799, of October 8, 1998.

FINAL PROVISIONS

Art. 9º. The persons mentioned in art. 2º of this Instruction must develop and implement control procedures that enable faithful compliance with the provisions contained therein.

Art. 9º. The persons mentioned in art. 2º of this Instruction must:

I - develop and implement a manual of control procedures that enable faithful compliance with the provisions of this Instruction; and

II - maintain a continuous training program for employees, aimed at disseminating control procedures and prevention of money laundering.

• Wording given by CVM Instruction No. 463, of January 8, 2008.

I – adopt and implement rules, procedures and internal controls that enable faithful compliance with the provisions of this Instruction, including:

a) the collection and recording of information about clients to allow timely identification of the risks of committing the crimes mentioned in art. 1º of this Instruction;

b) the prior analysis of new technologies, services and products, aimed at preventing the crimes mentioned in art. 1º of this Instruction; and

c) the selection and monitoring of employees, with the aim of guaranteeing high standards of their staff, aimed at preventing the crimes mentioned in art. 1º of this Instruction;

II – maintain a continuous training program for employees, aimed at disseminating the rules, procedures and internal controls and prevention of money laundering and terrorist financing.

• Items I and II with wording given by CVM Instruction No. 523, of May 28, 2012.

Art. 10. The persons mentioned in art. 2º of this Instruction must indicate to the CVM, by August 2, 1999, a director responsible for complying with the obligations hereby established.

Art. 10. The persons mentioned in art. 2º of this Instruction must have a director responsible for complying with the obligations hereby established, to whom access to client registration data, as well as to any information regarding the operations carried out, must be granted.

• Wording given by CVM Instruction No. 463, of January 8, 2008.

CVM INSTRUCTION NO. 301, OF APRIL 16, 1999

EFFECTIVENESS

Art. 11. This Instruction enters into force on the date of its publication in the Official Gazette of the Union, producing effects from August 2, 1999.

Original signed by

FRANCISCO DA COSTA E SILVA
President

CVM INSTRUCTION NO. 301, OF APRIL 16, 1999

• Annex I included by CVM Instruction No. 506, of September 27, 2011.

ANNEX I

Minimum content of client registration

Art. 1º The client registration must have, at minimum, the following content:

I – if a natural person:

a) full name;

b) sex;

c) date of birth;

d) place of birth;

e) nationality;

f) marital status;

g) parentage;

h) name of spouse or partner;

i) nature and number of identification document, name of issuing body and date of issue;

j) number of registration in the Individual Taxpayer Registry – CPF/MF;

k) full address (street, complement, neighborhood, city, state and ZIP code) and telephone number

l) electronic address for correspondence;

m) professional occupation;

n) entity for which they work;

CVM INSTRUCTION NO. 301, OF APRIL 16, 1999

o) information about income and financial situation;

p) information about risk profile and financial knowledge of the client;

q) if the client operates on behalf of third parties, in the case of investment fund administrators and managed portfolios;

r) if the client authorizes or not the transmission of orders by proxy;

s) indication of whether there are proxies or not;

t) qualification of the proxies and description of their powers, if any;

u) dates of updates to the registration;

v) client's signature;

w) copies of the following documents:

i) identity document; and

ii) proof of residence or domicile.

x) copies of the following documents, if applicable:

i) power of attorney; and

ii) identity document of the proxy.

II – if a legal entity:

a) the corporate name or trade name;

b) names and CPF/MF of direct controllers or corporate name and registration in the National Registry of Legal Entities – CNPJ of direct controllers;

c) names and CPF/MF of administrators;

CVM INSTRUCTION NO. 301, OF APRIL 16, 1999

d) names of proxies;

e) CNPJ number;

f) full address (street, complement, neighborhood, city, state and ZIP code);

g) telephone number;

h) electronic address for correspondence;

i) main activity developed;

j) average monthly revenue of the last twelve months and financial situation;

k) information about risk profile and financial knowledge of the client;

l) corporate name or trade name of controlling, controlled or affiliated legal entities;

m) if the client operates on behalf of third parties, in the case of investment fund administrators and managed portfolios;

n) if the client authorizes or not the transmission of orders by representative or proxy;

o) qualification of representatives or proxies and description of their powers;

p) dates of updates to the registration;

q) client's signature;

r) copies of the following documents:

i) CNPJ;

ii) document of constitution of the legal entity duly updated and registered with the competent body; and

iii) corporate acts indicating the administrators of the legal entity, if applicable.

CVM INSTRUCTION NO. 301, OF APRIL 16, 1999

s) copies of the following documents, if applicable:

i) power of attorney; and

ii) identity document of the proxy.

III – in other cases:

a) the complete identification of the clients;

b) the complete identification of their representatives and/or administrators;

c) financial and patrimonial situation;

d) information about risk profile and financial knowledge of the client;

e) if the client operates on behalf of third parties, in the case of investment fund administrators and managed portfolios;

f) dates of updates to the registration; and

g) client's signature.

§ 1º. Changes to the address in the registration depend on the client's order, written or by electronic means, and proof of the corresponding address.

§ 2º. In the case of non-resident investors, the registration must additionally contain:

I – the names of the natural persons authorized to issue orders and, as applicable, the administrators of the institution or those responsible for the management of the portfolio; and

II – the names of the legal representative and the person responsible for the custody of their securities.

Art. 2º The registration must contain a declaration, dated and signed by the client or, if applicable, by a legally constituted proxy, stating that:

I – the information provided to fill out the registration is true;

CVM INSTRUCTION NO. 301, OF APRIL 16, 1999

II – the client commits to inform, within a period of 10 (ten) days, any changes that may occur in their registration data, including eventual revocation of mandate, if there is a proxy;

III – the client is a person linked to the intermediary, if applicable;

IV – the client is not barred from operating in the securities market;

V – their orders must be transmitted in writing, by electronic connection systems or telephone and other voice transmission systems; and

VI – the client authorizes the intermediaries, if there are pending debts in their name, to settle the contracts, rights and assets acquired on their behalf and order, as well as to execute assets and rights given as collateral for their operations or that are in the possession of the intermediary, applying the proceeds of the sale to the payment of pending debts, regardless of judicial or extrajudicial notification.

Sole Paragraph. For the negotiation of investment fund shares, it will also be mandatory that the registration with the intermediary contains the client's prior authorization, through a specific instrument, including a declaration of awareness that:

I – received the regulations and, if applicable, the prospectus or fund document;

II – took note of the risks involved and the investment policy;

III – took note of the possibility of negative net worth, if applicable, and, in this case, of their responsibility for consequent additional resource contributions.

§ 1º. The registration must also contain a declaration signed and dated by the client or, if applicable, by a legally constituted proxy, regarding the purposes and nature of the business relationship with the institution.

• §1º included by CVM Instruction No. 553, of October 16, 2014.

§ 2º. For the negotiation of investment fund shares, it will also be mandatory that the registration with the intermediary contains the client's prior authorization through a specific instrument, including a declaration of awareness that:

I – received the regulations and, if applicable, the prospectus or fund document;

CVM INSTRUCTION NO. 301, OF APRIL 16, 1999

II – took note of the risks involved and the investment policy;

III – took note of the possibility of negative net worth, if applicable, and, in this case, of their responsibility for consequent additional resource contributions.

• Original sole paragraph renumbered as §2º by CVM Instruction No. 553, of October 16, 2014.

§ 3º. The provisions of § 2º of this article do not apply to the negotiation of shares in an organized market.

• §3º included by CVM Instruction No. 553, of October 16, 2014.

Art. 3º The client registration of those who carry out operations with derivatives in an organized market must contain a specific standard contract for such operations.

Sole Paragraph. The market administrator entity must establish the content of the standard contract mentioned in the caput.