CVM Instruction No. 354 of July 24, 2001

CVM INSTRUCTION NO. 354, OF JULY 24, 2001.

Amends CVM Instruction No. 279, of May 14, 1998, which provides for the constitution, administration, and operation of Mutual Funds for Privatization – FGTS.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Body, in a meeting held on this date, in view of the provisions of item I of Article 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, Decree No. 2,430, of December 17, 1997, and Decree No. 3,595, of September 8, 2000, HAS DECIDED TO ISSUE THE FOLLOWING INSTRUCTION:

Art. 1

Articles 20, 23-A, and 30-A of CVM Instruction No. 279, of May 14, 1998, shall enter into force with the following wording:

“Art. 20......

II – after the minimum period of six months has elapsed, counted from the effective transfer of resources to the chosen Mutual Fund for Privatization - FGTS, for the total or partial transfer of the investment to another Mutual Fund for Privatization - FGTS or to an Investment Club – FGTS;

III - after a period of twelve months has elapsed from the date of the partial conversion of the participant's FGTS balance into Mutual Fund for Privatization shares, for return to FGTS;

......(NR).”

“Art. 23-A.......

§2

Applications or fixed-income operations, pre- or post-fixed, or synthesized via any other instruments, whose yields can be estimated at the time of their realization, are limited to forty-nine percent of the fund's net assets (NR).”

“Art. 30-A. The administering institution shall comply with the provisions of Article 66, item I, of CVM Instruction No. 302, of May 5, 1999, and additionally, in the case of administering Free Portfolio Mutual Funds for Privatization – FGTS, Articles 67 and 68 of the cited Instruction. (NR)”

Art. 2

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

Signed original by

JOSÉ LUIZ OSORIO DE ALMEIDA FILHO

President