CVM Instruction No. 337 of May 15, 2000

CVM INSTRUCTION NO. 337, OF MAY 15, 2000.

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

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION – CVM makes it public that the Collegiate Board, in a meeting held on May 11, 2000, in view of the provisions of Art. 19 of Law No. 6,385, of December 7, 1976, and of Resolution of the National Monetary Council No. 1,787, of February 1, 1991, HAS RESOLVED to issue the following Instruction:

Art. 1

The Arts. 2, 5, 19, and 22 of CVM Instruction No. 279, of May 14, 1998, shall enter into force with the following wording:

“Art. 2

The Fund shall adopt the denomination “Mutual Privatization Fund – FGTS”, complemented by the corporate name of the issuer company of the securities that make up the portfolio, in the manner of Art. 22 of this Instruction, and its shares shall be fully paid, exclusively, with resources resulting from the partial conversion of the FGTS balances of the participants referred to in the sole paragraph of Art. 1 of this Instruction.

Sole Paragraph. A Mutual Privatization Fund – FGTS intended exclusively for the investment of resources after the lapse of the six-month period provided for in § 7 of Art. 20 of Law No. 8,036, of May 11, 1990, as amended by Law No. 9,635, of May 15, 1998, may be constituted, which shall adopt the denomination “Mutual Privatization Fund – FGTS Free Portfolio”, obeying the rules of constitution, administration, and operation provided for in this Instruction.” (NR)

“Art. 5

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§1

The administration fee, applied to the value of the Fund’s Net Asset Value, must be appropriated on a business day basis as an expense of the Fund, and the charging of an administration fee based on the Fund’s result (performance fee) is prohibited.

§2

The charging of any fee as a title for entry into or exit from the Fund is prohibited.” (NR)

“Art. 19. Every shareholder, upon subscribing to the Fund’s shares, must attest, in writing, that they received the respective prospectus and bylaws, and have knowledge of the administration fees and investment risk, declaring that they are aware that they may only participate in the public offering through a single Fund.

§1

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§2

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§3

The prospectus of the Fund constituted in the manner of Art. 2, sole paragraph, of this Instruction shall obey the provisions of Arts. 34 and 35 of CVM Instruction No. 302, of May 5, 1999, insofar as applicable.

§4

The Fund constituted in the manner of Art. 2, caput, of this Instruction shall be exempt from the prospectus.” (NR)

“Art. 22. ......

I – securities acquired in a public offering within the scope of the National Privatization Program, regulated by Law No. 9,491, of September 9, 1997, and by Decree No. 2,430, of December 17, 1997, or of State Privatization Programs, upon approval by the CND;

II – fixed-income titles, private or federal public, up to the maximum limit of ten percent of the value of the Fund’s net asset value.

Sole Paragraph. The Fund’s first acquisition shall take place in the manner provided for in item I of this article and shall have as its object securities issued by a single open company or that comes to register with the CVM as such, by virtue of an obligatory clause in the Privatization Tender.” (NR)

Art. 2

Art. 23-A is included with the following wording:

“Art. 23-A. The Mutual Privatization Fund - FGTS Free Portfolio must maintain its assets invested exclusively in:

I - securities of open companies, traded on a stock exchange, organized over-the-counter market by an institution authorized by the CVM, or subject to a public offering registered with the CVM;

II - fixed-income titles, private or federal public, up to the limit of 49% of the value of the Fund’s Net Asset Value;

III - positions in organized markets for future settlement, involving contracts referenced in stocks or stock indices, with the exclusive objective of protecting positions held spot, up to the limit of these.

Sole Paragraph. Investment in titles and securities issued by the institution administering the Fund or issued by a controlling, affiliated, controlled company, by a company part of the same group of societies or by groups of societies, or by a consortium company of the administrator institution’s group, is not permitted.”

Art. 3

Art. 30-A is included with the following wording:

“Art. 30-A. The administering institution must obey the provisions of Art. 66, item I, of CVM Instruction No. 302/99.”

Art. 4

This Instruction enters into force on the date of its publication in the Official Gazette of the Union.

Signed original by

WLADIMIR CASTELO BRANCO CASTRO
Acting President