CVM Instruction No. 306 of May 5, 1999 (Revoked)

FULL TEXT OF CVM INSTRUCTION NO. 306, OF MAY 5, 1999, WITH THE CHANGES INTRODUCED BY CVM INSTRUCTIONS NO. 364/02, 448/07, 450/07, 510/11 AND 545/14.
CVM INSTRUCTION NO. 306, OF MAY 5, 1999.
Provides for the administration of securities portfolios and revokes CVM Instructions No. 82, of September 19, 1988; No. 94, of January 4, 1989; and No. 231, of January 16, 1995.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Board, in a meeting held on this date, in view of the provisions of Arts. 8, items I and III, and 23 of Law No. 6,385, of December 7, 1976, HAS DECIDED to issue the following Instruction:

ON SCOPE AND PURPOSE
Art. 1 The administration of securities portfolios is governed by the norms contained in this Instruction.

ON DEFINITION
Art. 2 The administration of securities portfolios consists in the professional management of resources or securities, subject to the supervision of the Securities and Exchange Commission, entrusted to the administrator, with authorization for this person to purchase or sell securities on behalf of the investor.

ON AUTHORIZATION
Art. 3 The professional administration of securities portfolios may only be exercised by a natural or legal person authorized by the CVM.
Sole Paragraph. The authorization to exercise the activity of securities portfolio administration does not imply any assessment of the merits of the natural or legal person administrator, nor responsibility on the part of the CVM. Sole Paragraph. The CVM is not responsible for the procedures and orientations of securities portfolio administrators. (NR)

• Sole paragraph with wording given by CVM Instruction No. 364, of May 7, 2002.

CVM INSTRUCTION NO. 306, OF MAY 5, 1999
ON THE NATURAL PERSON ADMINISTRATOR
Art. 4 The authorization to exercise the activity of securities portfolio administration is only granted to a natural person domiciled in the country who has:
I – higher education degree, from an institution officially recognized, in the country or abroad; II - professional experience of at least three years in the financial area and/or in the securities market in the area of administration of third-party resources or professional experience of at least five years, directly related to the activities exercised in the securities market; and II - professional experience of:
a) at least three years in specific activity directly related to the management of third-party resources in the financial market; or b) at least five years in the capital market, in an activity that demonstrates their aptitude for the management of third-party resources; and

• Item II, letters “a” and “b”, with wording given by CVM Instruction No. 364, of May 7, 2002.
  III - unblemished reputation.
  Sole Paragraph. The CVM may, exceptionally, waive compliance with the requirement provided for in item I of this article, provided that professional experience specified in item II of at least seven years is proven. §1 The CVM may, exceptionally, waive compliance with the requirement provided for in item I of this article, provided that the professional experience required in item II of this article of at least seven years is proven.
• Original sole paragraph renumbered to § 1 by CVM Instruction No. 364, of May 7, 2002.
  §2 The CVM may, exceptionally, waive compliance with the requirement provided for in item II of this article, provided that the interested party possesses renowned knowledge and high qualification in a field of knowledge that qualifies them to exercise the activity of securities portfolio administration.
• §2 added by CVM Instruction No. 364, of May 7, 2002.

CVM INSTRUCTION NO. 306, OF MAY 5, 1999
§3 Acting as an investor in the securities market or the administration of third-party resources in an unpaid manner is not considered professional experience, for the purposes of meeting the requirement provided for in item II of this article.

• §3 added by CVM Instruction No. 364, of May 7, 2002.
  §4 For the purpose of proving the experience provided for in letter “b” of item II and in § 1 of this article, the interested party must submit to the CVM a request objectively justifying their understanding that they are qualified to administer securities portfolios for third parties. (NR)
• §4 added by CVM Instruction No. 364, of May 7, 2002.
  Art. 5 The application for authorization to exercise the activity of portfolio administration, by natural person, must be accompanied by the following documents:
  I - curriculum vitae containing professional data that demonstrate the applicant's experience, in accordance with Art. 4 of this Instruction; I – request signed by the interested party;
• Item I with wording given by CVM Instruction No. 364, of May 7, 2002.
  II - registration form, duly filled out, contained in Annex III to this Instruction; and II – curriculum vitae containing professional data that demonstrate the applicant's experience, in accordance with Art. 4, duly signed by the interested party;
• Item II with wording given by CVM Instruction No. 364, of May 7, 2002.
  III - declaration by the applicant, regarding:
  a) whether they are ineligible to hold a position in financial institutions and other entities authorized to operate by the CVM or the Central Bank of Brazil, insurance companies, private pension entities and open capital companies; b) whether they have been judicially convicted in the last five years, and do not present, at the time of the request, protested bills; c) whether they are included in the Register of Issuers of Bounced Checks;

CVM INSTRUCTION NO. 306, OF MAY 5, 1999 d) whether they are bankrupt, in judicial reorganization or insolvent, or were an administrator or member of the fiscal council in the last five years of a legal entity that requested bankruptcy or whose bankruptcy was decreed in this period; and e) whether they were, in the last five years, an administrator or member of the fiscal council of an entity subject to the control and supervision of the CVM, the Central Bank of Brazil, the Secretariat of Complementary Pension or the Superintendence of Private Insurance, which had, in this period, its authorization revoked or was subject to the regime of bankruptcy, judicial reorganization, intervention, extrajudicial liquidation or submitted to a regime of temporary special administration. III – registration form duly filled out, contained in Annex III to this Instruction; (NR)

• Item III with wording given by CVM Instruction No. 364, of May 7, 2002.
  IV – copy of the diploma of completion of higher education and of the main courses mentioned in the curriculum;
• Item IV added by CVM Instruction No. 364, of May 7, 2002.
  V – copy of the registration card in the Register of Natural Persons and of the identity card; (NR)
• Item V added by CVM Instruction No. 364, of May 7, 2002.
  VI – declaration from the current and previous employers informing what activities were developed by the interested party and listing the corresponding periods in which they were exercised or, if applicable, copy of the articles of association of companies of which the interested party is or has been a partner; (NR)
• Item VI added by CVM Instruction No. 364, of May 7, 2002.
  VII – declaration, duly signed by the applicant, informing:
  a) whether they are ineligible to hold a position in financial institutions and other entities authorized to operate by the CVM or the Central Bank of Brazil, insurance companies, private pension entities and open capital companies; (NR) b) whether they have been convicted of bankruptcy crimes, prevarication, active or passive corruption, extortion, market manipulation, improper use of insider information, irregular exercise of position, profession, activity or function within the scope of the securities market, embezzlement, against the popular economy, public faith, property, the National Financial System or criminal penalty that prohibits, even temporarily, access to public positions; c) whether they are included in the Register of Issuers of Bounced Checks;

CVM INSTRUCTION NO. 306, OF MAY 5, 1999 d) whether they have bills protested against them; e) whether, in the last five years, they suffered any punishment due to their performance as administrator or member of the fiscal council of an entity subject to the control and supervision of the CVM, the Central Bank of Brazil, the Secretariat of Complementary Pension or the Superintendence of Private Insurance; and f) whether their assets, by virtue of a judicial decision or administrative authority, are unavailable.

• Item VII, letters “a” to “f”, added by CVM Instruction No. 364, of May 7, 2002.
  Sole Paragraph. In the cases provided for in letters “b” to “e” of item III, the CVM may examine and evaluate the individual situation of the applicant, with a view to granting the requested authorization, having the power to exercise discretionary power in the analysis of the circumstances of each case. §1 In the cases provided for in letters “d” and “e” of item VII, the CVM may examine and evaluate the individual situation of the applicant, with a view to granting the requested authorization, having the power to exercise discretionary power in the analysis of the circumstances of each case.
• §1 with wording given by CVM Instruction No. 364, of May 7, 2002.
  §2 If it is not possible to obtain the declarations provided for in item VI of this article, the interested party must send a copy of the pages of the professional card that prove the experience mentioned in the curriculum.
• §2 added by CVM Instruction No. 364, of May 7, 2002.
  Art. 6 The administrator may, at their discretion, contract the services of securities analysis with a natural or legal person, duly authorized for this purpose by the CVM.
• Article revoked by CVM Instruction No. 364, of May 7, 2002.

ON THE LEGAL PERSON ADMINISTRATOR
Art. 7 The authorization to exercise the activity of securities portfolio administration is only granted to a legal person domiciled in the country that:
I - has as its corporate object the exercise of securities portfolio administration and is regularly constituted and registered with the CNPJ;

CVM INSTRUCTION NO. 306, OF MAY 5, 1999
II - assigns responsibility for the administration of securities portfolios to a director or managing partner authorized to exercise the activity by the CVM; and II – assigns responsibility for the administration of securities portfolios to a director, delegated manager or managing partner authorized to exercise the activity by the CVM; and

• Item II with wording given by CVM Instruction No. 364, of May 7, 2002.
  III - constitutes and maintains a specialized technical department for securities analysis.
  §1 It is optional for the legal person to hire third parties duly authorized by the CVM for the services provided for in item III of this article.
  §2 In the case provided for in the previous paragraph, the application for authorization must be accompanied by the contract signed with the person authorized by the CVM.
  §3 The replacement of the director, managing partner responsible or the contracted person, in accordance with § 1 of this article, depends on prior approval by the CVM, in the manner provided for in this Instruction. §3 The replacement of the director, delegated manager or managing partner responsible or the contracted person, in accordance with § 1 of this article, can only be made by a professional equally qualified by the CVM, in the manner provided for in this Instruction.
• §3 with wording given by CVM Instruction No. 364, of May 7, 2002.
  §4 In the event of impediment of the person responsible for a period exceeding thirty days, the substitute must assume responsibility for the administration of securities portfolios, and the CVM must be notified in writing within one business day, counting from its occurrence. § 5 The director or managing partner directly responsible for the administration of third-party securities portfolios cannot be responsible for any other activity of the institution. §5 The director, delegated manager or managing partner directly responsible for the administration of third-party securities portfolios cannot be responsible for any other activity in the capital market, in the institution or outside it.
• §5 with wording given by CVM Instruction No. 364, of May 7, 2002.
  §6 The CVM may examine the indication of more than one responsible director, if the legal person administers securities portfolios of investors of diverse nature and provided that its administrative structure contemplates the existence of a rigid division of activities among them, which must

CVM INSTRUCTION NO. 306, OF MAY 5, 1999 be exercised in an independent and exclusive manner, especially with regard to investment decision-making.
§6 The director, delegated manager or managing partner directly responsible for the administration of third-party securities portfolios can only be responsible for the same activity in affiliated companies, as defined by law.

• §6 with wording given by CVM Instruction No. 364, of May 7, 2002.
  §7 The CVM may examine the indication of more than one responsible director, if the legal person administers securities portfolios of diverse nature, and provided that its administrative structure contemplates the existence of a rigid division of activities among them, which must be exercised in an independent and exclusive manner, especially with regard to investment decision-making.
• §7 added by CVM Instruction No. 364, of May 7, 2002.
  §8 The technical department is responsible for the preparation of studies and investment analyses that underpin the decisions to be taken, maintaining appropriate records with the justifications for the recommendations made.
• §8 added by CVM Instruction No. 364, of May 7, 2002.
  §9 The assignment of responsibility for the administration of securities portfolios to a delegated manager or managing partner must be recorded in the articles of association of the legal person.
• §9 added by CVM Instruction No. 364, of May 7, 2002.
  Art. 8 The application for authorization to exercise the activity of securities portfolio administration, by legal person, must be accompanied by:
  I - copy of the constitutive acts duly consolidated; I - request signed by the legal representative;
• Item I with wording given by CVM Instruction No. 364, of May 7, 2002.
  II - document containing the indication of the managing partner or director responsible for the activity; II - copy of the constitutive acts duly consolidated;
• Item II with wording given by CVM Instruction No. 364, of May 7, 2002.

CVM INSTRUCTION NO. 306, OF MAY 5, 1999
III - information about the analysis department, including quantity and nature of the activities of the professionals belonging to the department and, if applicable, contract with a person authorized by the CVM to provide services of this nature; III - copy of the proof of registration in the National Register of Legal Entities;

• Item III with wording given by CVM Instruction No. 364, of May 7, 2002.
  IV - information about the type of investor with which the company intends to operate; and IV - document containing the indication of the managing partner, delegated manager or director responsible for the activity;
• Item IV with wording given by CVM Instruction No. 364, of May 7, 2002.
  V - registration form, duly filled out, contained in Annex IV to this Instruction.
  V - information about the technical department, including the number of professionals, the nature of the activities developed by its members and the infrastructure available, including a detailed list of equipment, programs and services, own or third-party, used in the activity of portfolio administration, or, if applicable, the contract with a person authorized by the CVM to provide services of this nature;
• Item V with wording given by CVM Instruction No. 364, of May 7, 2002.
  VI – information about the investor profile with which the company intends to operate; and
• Item VI added by CVM Instruction No. 364, of May 7, 2002.
  VII – registration form, duly filled out, contained in Annex IV to this Instruction.
• Item VII added by CVM Instruction No. 364, of May 7, 2002.

ON THE TERM OF GRANT OF AUTHORIZATION
Art. 9 The authorization to exercise the activity of securities portfolio administration is granted through a Declaratory Act, to be issued within thirty days, counting from the date of receipt of the application at the CVM, duly accompanied by the respective documentation.

CVM INSTRUCTION NO. 306, OF MAY 5, 1999
§1 If the period provided for in this article elapses without any manifestation by the CVM to the contrary, the application for authorization is presumed approved, and the interested party may request the issuance of the respective Declaratory Act. §2 The thirty-day period may be interrupted only once, if the CVM requests additional information from the interested party, with a new thirty-day period starting to run from the date of compliance with the requirements. §3 To meet the requirements, a period not exceeding sixty days is granted, counting from the receipt of the respective correspondence, under penalty of denial of the application. §4 The CVM may, through a reasoned letter, return the authorization application and the documents that accompanied it without formulating requirements, if it verifies that they present insurmountable irregularity or illegality, or that the request is not accompanied by the necessary documents.

• §4 added by CVM Instruction No. 364, of May 7, 2002.

ON DENIAL OF AUTHORIZATION AND APPEAL
Art. 10 The denial of the application for authorization to exercise the activity of securities portfolio administration must be communicated in writing to the interested party, with all documents that accompanied it available to them, for a period of ninety days, counting from the date of receipt of the notice that the application was denied, after which they may be destroyed by the CVM. Sole Paragraph. From the decision of the Superintendent that denies the application, an appeal may be filed to the CVM Board, in accordance with the current regulations.

ON CANCELLATION OF AUTHORIZATION
Art. 11. The authorization to exercise the activity of securities portfolio administration, by natural or legal person, may be cancelled, regardless of administrative inquiry:
I - if the falsity of the documents or declaration presented by the administrator to obtain accreditation is found; or II - if, due to a supervening fact duly proven, it becomes evident that the person authorized by the CVM no longer meets any of the requirements and conditions, established in this Instruction, for the grant of authorization.

CVM INSTRUCTION NO. 306, OF MAY 5, 1999
II - if, due to a supervening fact duly proven, it becomes evident that the person authorized by the CVM no longer meets any of the requirements and conditions, established in this Instruction, for the grant of authorization; or

• Item II with wording given by CVM Instruction No. 364, of May 7, 2002.
  III - if the securities portfolio administrator does not send the information provided for in Art. 12 of this Instruction for two consecutive years.
• Item III added by CVM Instruction No. 364, of May 7, 2002.
  §1 From the decision of the Superintendent that cancels the authorization, an appeal may be filed to the CVM Board, in accordance with the current regulations.
  §2 In the case provided for in item I of this article, the CVM will notify the Public Ministry to file the appropriate criminal action, without prejudice to the application of the applicable administrative sanctions.

ON CANCELLATION AT REQUEST
Art. 11-A. The request for cancellation of the authorization to exercise the activity of securities portfolio administration must be accompanied by a declaration that, on the date of the request, the applicant no longer exercises the activity of securities portfolio administration. §1 The cancellation request will be approved by a Declaratory Act, to be issued within thirty days, counting from the protocol at the CVM, whose effects will retroact to the date of the request, presumed approved if, after such period, there is no manifestation by the CVM. §2 The approval of the cancellation does not prevent the CVM from instituting or proceeding with a procedure to investigate the responsibility of the applicant for acts occurring up to that date.

• Article and §§ added by CVM Instruction No. 364, of May 7, 2002.

ON INFORMATION
Art. 12. The securities portfolio administrator, natural or legal person, must send to the CVM, by May 31 of each year, information regarding the portfolios they administer, as established in Annexes I and II of this Instruction, in addition to updated registration information, in accordance with the provisions of Annexes III or IV, as applicable. Art. 12 The securities portfolio administrator, natural or legal person, must send to the CVM, by May 31 of each year, information regarding the portfolios they administer, based on positions as of March 31 of the same year, as established in Annexes I and II of this

CVM INSTRUCTION NO. 306, OF MAY 5, 1999

Instruction, in addition to updated registration information, in accordance with the provisions of Annexes III or IV, as the case may be.

• "Caput" with wording given by CVM Instruction No. 364, of May 7, 2002.

Sole Paragraph. Any registration change relating to the securities portfolio administrator must be communicated to the CVM within fifteen days, counted from its occurrence, without prejudice to the provisions of the caput of this article.

Art. 12 The securities portfolio administrator, whether natural or legal person, must send to the CVM, by May 31 of each year, information relating to the portfolios it administers, based on positions as of March 31 of the same year, as established in Annexes I and II of this Instruction.

• Article with wording by CVM Instruction No. 510, of December 5, 2011.

Art. 13. Whenever it publicly discloses data based on the historical performance of administered portfolios or securities and capital market indices, the administrator must add, prominently, the following message: "THE ADMINISTRATOR WARNS THAT RESULTS OBTAINED IN THE PAST DO NOT GUARANTEE FUTURE RESULTS".

Art. 13. Whenever it publicly discloses data based on the historical performance of administered portfolios or securities and capital market indices, the securities portfolio administrator must add, prominently, the following message: "THE ADMINISTRATOR WARNS THAT RESULTS OBTAINED IN THE PAST DO NOT GUARANTEE FUTURE RESULTS".

• "Caput" with wording given by CVM Instruction No. 364, of May 7, 2002.

Sole Paragraph. The performance disclosure material must include information on all portfolios that the administrator has under its management and not only on some of them, encompassing, at minimum, the last six months.

ON CONDUCT RULES

Art. 14. The natural or legal person responsible for the administration of the securities portfolio must observe the following conduct rules:

I - perform its duties in a manner that meets the investment objectives of the holder(s) of the portfolio;

II - employ, in the exercise of its activity, the care and diligence that every active and upright person usually dispenses to the administration of their own business, being liable for any infractions or irregularities that may be committed under its management;

CVM INSTRUCTION NO. 306, OF MAY 5, 1999

II - employ, in the exercise of its activity, the care and diligence that every active and upright person usually dispenses to the administration of their own business, acting with loyalty towards the interests of its clients, avoiding practices that may harm the fiduciary relationship maintained with them, and being liable for any infractions or irregularities that may be committed under its management;

• Item II added by CVM Instruction No. 450, of March 30, 2007.

III - faithfully comply with the contract signed with the client, previously and mandatorily in writing, which must contain the basic characteristics of the services to be provided, among which are included:

a) the investment policy to be adopted, which must be in accordance with the investor's profile, their financial situation, and their objectives;

b) the remuneration charged for the services;

c) information on other activities that the administrator itself carries out in the market and the potential conflicts of interest existing between such activities and the administration of the securities portfolio;

d) the risks inherent to the various types of securities transactions in stock, over-the-counter, future settlement markets, and stock lending operations that it intends to carry out with the investor's resources, explicitly stating that investment in derivatives may result in losses greater than the investment made;

e) the authorization, if applicable, for the administrator to assume the counterparty of the operations, as provided in art. 16, in which case, for a corporate client, the name of the natural person with powers to grant such authorization must be indicated in writing to the administrator; and

f) the content and frequency of the information to be provided by the administrator to the client.

IV - avoid practices that may harm the fiduciary relationship maintained with its clients;

V - keep updated, in perfect order and available to the client, all documentation relating to securities transactions included in the portfolios under its management;

VI - keep in custody, in an entity duly authorized for such service, the securities included in the portfolios under its management, taking all useful or necessary measures for the defense of the interests of its clients;

VII – transfer to the portfolio any benefit or advantage that it may achieve as a result of its condition as portfolio administrator; and

CVM INSTRUCTION NO. 306, OF MAY 5, 1999

VIII - provide the information requested by the portfolio holder, pertinent to the securities included in the administered portfolio.

Sole Paragraph. The administrator must guarantee, through adequate internal control mechanisms, the permanent compliance with the norms and regulations in force, relating to the various alternatives and modalities of investment, to the portfolio administration activity itself, and to ethical and professional conduct standards.

ON THE SEGREGATION OF ACTIVITIES

Art. 15. In the administration of securities portfolios, the complete segregation of other activities carried out by the legal person must be ensured, and operational procedures must be adopted, among others, aiming at:

I - the physical segregation of facilities between areas responsible for different activities related to the capital market, or the clear and precise definition of practices that ensure the proper use of facilities, equipment, and files common to more than one sector of the company;

II - the preservation of confidential information by all its administrators, collaborators, and employees, prohibiting the transfer of such information to persons not qualified or who may come to use them improperly, in an investment decision process, own or of third parties;

III - the implementation and maintenance of a training program for administrators, collaborators, and employees who have access to confidential information and/or participate in the investment decision process;

IV - restricted access to files, as well as the adoption of controls that restrict and allow identifying the persons who have access to confidential information; and

V - the establishment of policies related to the purchase and sale of securities by employees, directors, and administrators of the entity.

Sole Paragraph. If the segregation referred to in this article is promoted through the hiring of a securities portfolio administrator, duly accredited with the CVM, to manage all securities portfolios administered by the institution, there is no need to designate a director, delegated manager, or managing partner of the administering institution to respond exclusively for the management and supervision of the aforementioned resources, and such designation may fall upon a director, delegated manager, or managing partner who has a link with other activities as long as they are not those of administering the resources of the institution itself, and the same must also be duly accredited with the CVM as a securities portfolio administrator. (NR)

• Sole Paragraph with wording given by CVM Instruction No. 364, of May 7, 2002.

CVM INSTRUCTION NO. 306, OF MAY 5, 1999

ON PROHIBITIONS

Art. 16. It is prohibited for the portfolio administrator:

I - act as counterparty, directly or indirectly, in transactions with portfolios it administers, except in the following cases:

a) when it concerns the administration of individual portfolios and there is prior and written authorization from the respective holder; or

b) when, although formally contracted as a portfolio administrator, it does not demonstrably hold discretionary power over it and does not have prior knowledge of the transaction.

II - carry out any type of relevant modification in the basic characteristics of the services it provides, except when there is prior and written authorization from the portfolio holder;

III - make advertising guaranteeing levels of profitability, based on the historical performance of the portfolio, or of securities and capital market indices;

IV - make any quantified promises regarding future returns of the portfolio;

V - grant loans or advances, or open credits in any modality, using, for this purpose, the resources it administers, except in the case of granting third parties stock loans for the realization of transactions in markets authorized to function by the CVM, provided there is prior and written authorization from the portfolio holder;

VI - promote transactions with the securities of the portfolios it administers, with the purpose of generating brokerage revenues for itself or for third parties;

VII - neglect, under any circumstances, the defense of the rights and interests of the portfolio holder, or omit itself in relation to the same; and

VIII - promote transactions whose objective consists of circumventing fiscal legislation and/or other legal and regulatory norms, even if such transactions increase the appreciation of the administered portfolio.

Sole Paragraph. In cases of public distribution in which the legal person responsible for the administration of the securities portfolio participates in the distribution consortium, the subscription of securities for the administered portfolio will be admitted, provided that under identical conditions to those that prevailed in the market or in which the administrator would contract with third parties, and the fact must be reported immediately to the CVM.

ON THE LIABILITY OF THE ADMINISTRATOR

CVM INSTRUCTION NO. 306, OF MAY 5, 1999

Art. 17. The natural or legal person, in the exercise of the activity of securities portfolio administration, is directly responsible, civilly and administratively, for damages resulting from its intentional or negligent acts and for those that infringe legal, regulatory, or statutory norms, without prejudice to eventual criminal liability and the subsidiary liability of the private law legal person that hired or supervised it inadequately.

Sole Paragraph. The members of an investment committee, or similar body, that make decisions relating to the application of third-party resources, have the same duties as the portfolio administrator.

ON PENALTIES AND PENALTY PAYMENTS

Art. 18. It is considered a serious offense, for the purposes of the provisions of art. 11, § 3 of Law No. 6.385/76, the exercise of the activity of securities portfolio administration by a natural or legal person not authorized, in accordance with this Instruction, or authorized based on false declarations or documents, as well as the infringement of the norms contained in arts. 14, items I, II, V, VII, and VIII, and 16, items VI to VIII of this Instruction.

Art. 19. The non-compliance with the provisions of arts. 7, §1; 14, items III, IV, VI, and VII, and 15, items I to V of this Instruction, by the securities portfolio administrator, is subject to the summary procedure of the administrative process, in accordance with the regulation of the National Monetary Council.

• Article 19 revoked by CVM Instruction No. 545, of January 29, 2014.

Art. 20. The portfolio administrator that does not send to the CVM the information provided for in this Instruction or that does not keep its registration updated, in accordance with art. 12 of this Instruction, is subject to a daily penalty payment of R$ 100.00 (one hundred reais), incident from the day following the end of the period established for the fulfillment of the obligation, without prejudice to the responsibility provided for in arts. 9, V, and 11 of Law No. 6.385/76.

ON FINAL AND TRANSITORY PROVISIONS

Art. 21. The portfolio administrator that already administers securities portfolios must, within ninety days, adapt to the provisions of this Instruction.

Sole Paragraph. Non-compliance with the provisions of the caput of this article entails the cancellation of the authorization to exercise the activity of securities portfolio administration.

Art. 21-A. The provisions of arts. 14 to 16 of this Instruction apply to the activities of administration and management of investment funds registered with the CVM.

§ 1º Unless otherwise specifically provided, the prohibition set forth in item I of art. 16 of this Instruction does not apply to administrators and managers of investment funds, and the possibility of the administrator or manager acting as counterparty to the fund must be stated in the fund's regulations, if applicable.

CVM INSTRUCTION NO. 306, OF MAY 5, 1999

§ 2º The administrator and the manager must keep, for 5 (five) years, a segregated record documenting the transactions in which they are counterparty to the fund.

• Art. 21-A added by CVM Instruction No. 450, of March 30, 2007.

Art. 22. CVM Instructions Nos. 82, of September 19, 1988, 94, of January 4, 1989, and 231, of January 16, 1995, are hereby revoked.

Art. 23. 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 I TO CVM INSTRUCTION NO. 306, OF MAY 5, 1999

ADMINISTERED PORTFOLIOS - SUMMARY

YEAR OF

INVESTOR TYPE NUMBER OF PORTFOLIOS VALUE OF PORTFOLIOS * R$ (thousands)

Natural Person
Legal Person - non-financial or institutional
Financial Institution Portfolios
Pension Funds
Insurance Companies
Variable Income Funds
Financial Investment Funds and Others
Other Institutional Investors (specify)
TOTAL

*Value calculated according to the same criteria used to determine the portfolio value of mutual equity investment funds.

CVM INSTRUCTION NO. 306, OF MAY 5, 1999

ANNEX II TO CVM INSTRUCTION NO. 306, OF MAY 5, 1999

ADMINISTERED PORTFOLIOS - ASSETS

YEAR OF

ASSET TYPE PORTFOLIO VALUE *
R$ (thousands)

Shares
Debentures
Other securities
Variable Income Fund Shares
Financial Investment Fund Shares
Shares of other funds
Options
Margins - Guarantees
Other assets
TOTAL

• Value calculated according to the same criteria used to determine the portfolio value of mutual equity investment funds.

CVM INSTRUCTION NO. 306, OF MAY 5, 1999

ANNEX III TO CVM INSTRUCTION NO. 306, OF MAY 5, 19991

NATURAL PERSON

Registration Form for
Provider of Securities Portfolio Administration Services:

1. Name:______
2. CPF:______
3. Residential Address:

---

---

4. City/State/ZIP:______ ______ ______
5. (DDD) TELEPHONE and FAX:______ ______ ______
6. Electronic address (e-mail):______
7. Legal Person of which he is Director, Delegated Manager, or Managing Partner responsible for the provision of
   Securities Portfolio Administration Services:
   Name:______ CNPJ:______

1 Annex III with wording determined by CVM Instruction No. 364, of May 7, 2002.

CVM INSTRUCTION NO. 306, OF MAY 5, 1999

ANNEX III TO CVM INSTRUCTION NO. 306, OF MAY 5, 19992

NATURAL PERSON

Registration Form for
Provider of Securities Portfolio Administration Services:

1. Name:______
2. CPF:______
3. Residential Address:

---

---

4. City/State/ZIP:______ ______ ______
5. (DDD) TELEPHONE and FAX:______ ______ ______
6. Electronic address (e-mail):______
7. Legal Person of which he is Director, Delegated Manager, or Managing Partner responsible for the
   provision of Securities Portfolio Administration Services:
   Name:______ CNPJ:______
8. Does he currently have resources under his management?

2 Annex III with wording given by CVM Instruction No. 448, of February 13, 2007.

CVM INSTRUCTION NO. 306, OF MAY 5, 1999

ANNEX IV TO CVM INSTRUCTION NO. 306, OF MAY 5, 19993

LEGAL PERSON

Registration Form for
Provider of Securities Portfolio Administration Services

1. Corporate Name:______
2. Trade Name:______
3. CNPJ:______
4. Headquarters Address: ______
5. City/State/ZIP ______ ______ ______
6. (DDD) TELEPHONE and FAX:_______ ______ ______
7. Mailing Address: ______
8. City/State/ZIP: ______ ______ ______
9. Electronic address (e-mail): ______
10. Director, Delegated Manager, or Managing Partner responsible for Securities Portfolio Administration
    Services:
    Name:______ CPF:______
11. Natural or Legal Person hired to provide Securities and Financial Instruments Analysis services
    (only to be filled in case of non-existence of a technical department):
    Name:______ CNPJ/CPF:______

3 Annex IV with wording determined by CVM Instruction No. 364, of May 7, 2002.