CVM Instruction No. 325 of January 27, 2000 (Revoked)

FULL TEXT OF CVM INSTRUCTION NO. 325, OF JANUARY 27, 2000, WITH THE CHANGES INTRODUCED BY CVM INSTRUCTIONS NOS. 353/01 AND 419/05.

CVM INSTRUCTION NO. 325, OF JANUARY 27, 2000.

Provides for the registration, with the Securities and Exchange Commission (CVM), of non-resident investors, as provided in CMN Resolution No. 2,689, of January 26, 2000, and gives other provisions.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION – CVM makes public that the Collegiate Body, 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, and CMN Resolution No. 2,689, of January 26, 2000, HAS DECIDED to issue the following Instruction:

Art. 1 This Instruction provides for general registration norms with the CVM of non-resident investors, in accordance with CMN Resolution No. 2,689, of January 26, 2000.

Art. 2 For the purposes of the provision of item III of art. 3 of CMN Resolution No. 2,689/00, the following are subject to registration with the CVM: the investor, individual or collective, natural or legal persons, fund or other collective investment entity, with residence, headquarters or domicile abroad.

§1 Only an investor whose qualification is contemplated in item I.5, items "a" to "g", of the Annex to CMN Resolution No. 2,689/00 may be the holder of a collective account.

• Original sole paragraph renumbered as § 1 by CVM Instruction No. 353, of July 17, 2001.

§2 For the purposes of letters "c", "f.i" and "f.ii" of item I.5 of the Annex to CMN Resolution No. 2,689, of January 26, 2000, the CVM recognizes entities that meet at least one of the following requirements:

I - have signed a Memorandum of Cooperation and Understanding with the CVM;

II - have adhered to the IOSCO Resolution — International Organization of Securities Commissions, on Cooperation and Mutual Assistance, or have signed the Declaration regarding the Resolution of Commitment to the Basic Principles of IOSCO on High Regulatory Standards and Cooperation and Mutual Assistance;

III - are subordinate to the regulatory body in their country of origin, or have committed to exchange information with it, provided that this regulatory body complies with one of the criteria established in the preceding items, and has the power to transmit relevant information to the CVM regarding the investor applying for registration; or

IV - are members of IOSCO and commit directly to the CVM to exchange information regarding the investor applying for registration, in accordance with the declarations of item II.

• Paragraph with wording given by CVM Instruction No. 353, of July 17, 2001.

Art. 3 Prior to the start of its operations in the Country and after filling out the form contained in the Annex to CMN Resolution No. 2,689/00, the non-resident investor must, through its representative, obtain registration with the CVM.

§1 The registration number assigned by the CVM must appear in all operations carried out in the name of each investor participating in a collective account or holder of a own account, in order to allow the identification of the final principals in the operations carried out and to ensure segregation between the orders of the holder and each of the participants in the account.

§2 The representative must send, when requesting registration, electronically, the information contained in the Annex to CMN Resolution No. 2,689/00.

§3 The non-resident investor already registered with the CVM is obliged to fill out the form attached to CMN Resolution No. 2,689/00.

§4 The CVM will express its opinion regarding the registration, within a maximum period of twenty-four hours, from the request made by the representative referred to in art. 3, item I, of CMN Resolution No. 2,689/00.

Art. 4 The representative referred to in item I of art. 3 of CMN Resolution No. 2,689/00, if a natural person, must be resident and domiciled in the Country, and if a legal person, must be constituted and authorized to operate in the Country, observing also the provisions of § 2 of art. 3 of CMN Resolution No. 2,689/00.

Art. 5 The non-resident investor who intends to operate as an account holder must request registration with the CVM, and its representative must present, whenever requested, the following documents:

I - form described in the Annex to CMN Resolution No. 2,689/00;

II - contract signed in accordance with item I of art. 5 of CMN Resolution No. 2,689/00;

III - custody contract for securities and financial assets signed between the non-resident investor and an institution authorized by the CVM to provide such service;

IV - for each investor participating in the account, the form referred to in item I of this article.

§1 The non-resident investor may be the holder and participate in one or more accounts, and if it chooses to keep its securities and financial assets in separate custody accounts or in more than one custodian institution, the custody contract must contain a clause providing for the operational procedures for movements between accounts, including regarding the information to be provided to the holder and the representatives.

§2 The holder of a collective account may operate own resources in this account, provided that registration has been requested in its name for this purpose.

§3 In cases where the non-resident investor acts through a foreign institution, it will be admitted that the contract referred to in item III is signed by the foreign institution, in the name of the non-resident investor, provided that, in accordance with the regulations in force, the custodian institution ensures that the non-resident investor is duly registered with the foreign institution.

• Paragraph added by CVM Instruction No. 419, of May 05, 2005.

Art. 6 The holder, its representative, depositary institutions or entities providing custody and registration services must provide the CVM, when requested, documentation detailing, by participant, the transactions carried out, the assets comprising the portfolio, custody movements or any other additional information requested.

Art. 7 The representative must present, monthly, until the fifth business day of the following month, to the CVM, through electronic means, information regarding non-resident investors, in accordance with the database structure and programs provided by the CVM.

Sole Paragraph. The Superintendence of Institutional Investor Relations of the CVM is authorized to create, alter, include or suppress the programs referred to in the main text, as well as to alter the periodicity of the presentation of the information.

Art. 8 Prior authorization from the CVM is required for transfers of custody positions between non-resident investors occurring abroad, resulting from mergers, incorporations, spin-offs and other corporate changes, as well as those resulting from succession mortis causa.

Sole Paragraph. The transfer of securities and financial assets, between the different accounts in which the non-resident investor participates, must be reported to the CVM.

Art. 9 The representative of the non-resident investor must previously notify the CVM of the cancellation of the representation contract.

Art. 10 The portfolios of securities maintained in the Country by institutional investors constituted abroad under the Regulation Annex IV to CMN Resolution No. 1,289 of March 20, 1987, must, until July 1, 2000, be adapted to the provisions of CMN Resolution No. 2,689/00.

Art. 11 The CVM may suspend or cancel the registration of the non-resident investor who fails to comply with the provisions of arts. 3, 4 and 5 of this Instruction, based on item II of § 1 of art. 9 of Law No. 6,385, of December 7, 1976, without prejudice to other applicable penalties.

Art. 12 Non-compliance with the provisions of arts. 3, 5, 6, 9 and 10 of this Instruction is considered a serious offense, for the purposes of the provision of art. 11, § 3, of Law No. 6,385/76.

Art. 13 CVM Instructions No. 169, of January 2, 1992; 210, of April 15, 1994; and 242, of January 26, 1996, are revoked.

Art. 14 This Instruction enters into force on March 31, 2000.

Original signed by

FRANCISCO DA COSTA E SILVA
President