CVM Instruction No. 339 of June 21, 2000 (Revoked)

CVM INSTRUCTION NO. 339, OF JUNE 21, 2000.

Amends CVM Instructions Nos. 279 and 280, of May 14, 1998, which provide for the constitution, administration, and operation of Privatization Mutual Funds – FGTS and Investment Clubs – FGTS.

THE PRESIDENT OF THE COMMISSION OF SECURITIES AND EXCHANGE – CVM makes public that the Collegiate Board, in a meeting held on this date, in view of the provisions of item I, of Art. 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, HAS DECIDED to issue the following Instruction:

Art. 1

Articles 2, 5, 9, 11, 18, 19, 22, 23, 26, and 33 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 “Privatization Mutual Fund – FGTS”, complemented with identification of the issuing 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 with resources resulting from the partial conversion of FGTS balances of the participants referred to in the sole paragraph of Art. 1 or resulting from the transfer provided for in item II, of Art. 20.

Sole Paragraph. A Privatization Mutual Fund – FGTS may be constituted that shall have its shares fully paid exclusively with resources resulting from the transfer provided for in item II, of Art. 20, which shall adopt the denomination “Privatization Mutual Fund – FGTS Free Portfolio”, observing the rules of constitution, administration, and operation provided for in this Instruction.” (NR)

“Art. 5

§1

§2 The charging of any fee as entry or exit from the Fund is prohibited, observed the provisions of § 3 of this article.

§3 The funds may provide in their regulations the existence of an early redemption fee under the conditions that may be previously established by specific deliberation of the CVM for this purpose.” (NR)

“Art. 9

§1 The financial assets and/or operational modalities comprising the Fund’s portfolios shall be custodied, registered, and/or maintained in a deposit account directly in the name of the fund,

CVM INSTRUCTION NO. 339, OF JUNE 21, 2000.
2 segregated from the administrator’s account, centralized in a single authorized custody entity for the exercise of the activity by the CVM.

“Art. 11.

§1 The Fund’s regulation may be altered, independently of a General Assembly or consultation with the shareholders, whenever such alteration results exclusively from the need to meet requirements of the CVM, as a consequence of legal or regulatory norms, and the necessary publication and communication to shareholders must be provided within thirty days, counted from the communication of the CVM.

§2 Only mergers and incorporations of Privatization Mutual Funds – FGTS that possess in their portfolio securities issued by the same company may be carried out, in the terms of Art. 22, and it is also permitted to carry out mergers and incorporations of Privatization Mutual Funds – FGTS Free Portfolio with compatible investment policies.

§3 The transformation of a Privatization Mutual Fund – FGTS into a Privatization Mutual Fund – FGTS Free Portfolio and vice-versa is prohibited.

§4 The alteration of the issuing company of the securities comprising the fund’s portfolio is prohibited, in the terms of Art. 22.”(NR)

“Art. 18

§1

§2 The date of subscription of the shares shall correspond to the date on which the FGTS operating agent communicates to the Privatization Mutual Fund – FGTS the blocking of the respective amount in the FGTS holder’s account or the date of the transfer, in the manner of § 2, of Art. 20.

§3 The payment of shares shall occur concomitantly with the financial settlement of the securities acquired within the scope of the PND or the State Privatization Programs or the date of the transfer, in the manner of § 2, of Art. 20.

......” (NR)

“Art. 19. Every shareholder, upon subscribing to the Fund’s shares, must attest, through an adherence term, that they received the respective prospectus and regulation, and are aware of the administration fees and the investment risk.

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§1 When it concerns a Privatization Mutual Fund – FGTS Free Portfolio, the adherence term mentioned in the caput of this article must contain express mention of the risk criteria adopted in the selection of the fund’s portfolio.

§2 The administrator must keep, available for CVM inspection, the adherence term referred to in this article, duly signed by the investor, or an electronic system recognized by system audit, which guarantees compliance with the provisions of the caput.

......”(NR)

“Art. 22.

§1 The Fund’s first acquisition shall occur 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 will come to be registered with the CVM as such, by virtue of an obligatory clause in the Privatization Tender.

§2 The fund may acquire, on a stock exchange or in an organized over-the-counter market, shares issued by the issuing company of the securities that make up its portfolio.” (NR)

“Art. 23. During the period of six months after the acquisition of securities within the scope of the National Privatization Program and State Privatization Programs, the administrator may alienate, at most, ten percent of the acquired value.

Sole Paragraph - This percentage may be exceeded in the hypotheses provided for in items I to IV and VI to XI of Art. 20 of Law No. 8,036, of May 11, 1990, with the wording given by Law No. 9,491/97, as well as in the hypothesis provided for in Law No. 7,670, of September 8, 1988.”(NR)

“Art. 26

IV - acquire or sell, outside the stock exchange trading floor or organized over-the-counter market, shares of open companies for registration in these markets, excepted, regarding the acquisition, the hypotheses of auctions of the National Privatization Program or State Privatization Programs, subscriptions, and bonuses, observed the provisions of § 1 of Art. 22 of this Instruction.

......”(NR)

“Art. 33. The administering institution shall send to each shareholder, bimonthly, up to fifteen days after the end of the bimonthly period, a document containing the following information:

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......

b) the yield earned in each of the months of the previous bimonthly period;

......”(NR)

Art. 2

Article 37 A is included with the following wording:

“Art. 37 A. The CVM may grant provisional authorization for the operation of a Privatization Mutual Fund – FGTS.

Sole Paragraph. The CVM may, within ninety days of the provisional authorization, request documents, additional information, or modifications in the documentation presented, as well as request the correction of procedures in disagreement with current legislation, for the purpose of granting definitive authorization.”

Art. 3

Articles 1, sole paragraph, 9, and 23 caput, of CVM Instruction No. 280, of May 14, 1998, shall enter into force with the following wording:

“Art. 1

Sole Paragraph. The denomination of the condominium referred to in this article shall necessarily contain the expression “Investment Club – FGTS” complemented with the identification of the company pertinent to the intended investment.” (NR)

“Art. 9

Sole Paragraph. The clubs may provide in their statutes the existence of an early redemption fee under the conditions that may be previously established by specific deliberation of the CVM for this purpose.” (NR)

“Art. 23. The Investment Club – FGTS must keep its assets invested in shares of Privatization Mutual Funds – FGTS that have as their object securities of a single open company or that will come to be registered with the CVM as such, by virtue of an obligatory clause in the Privatization Tender.” (NR)

Art. 4

The Privatization Mutual Funds - FGTS and Investment Clubs – FGTS authorized to operate before the effectiveness of this Instruction must adapt to the provisions of this Instruction, within a period of fifteen days, counted from the date of its publication, under penalty of cancellation of the authorization for their operation.

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Art. 5

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

Original signed by

JOSÉ LUIZ OSORIO DE ALMEIDA FILHO

President