CVM Instruction No. 435 of July 5, 2006

CVM INSTRUCTION NO. 435, OF JULY 5, 2006.

Amends CVM Instructions Nos. 209, of March 25, 1994; 356, of December 17, 2001; 391, of July 16, 2003; 398, of October 28, 2003, and 399, of November 21, 2003.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Board, in a meeting held on this date, in view of the provisions of Arts. 2, item IX, and 8, item I, of Law No. 6.385, of December 7, 1976, as amended by Law No. 10.303, of October 31, 2001, resolved to issue the following Instruction:

Art. 1. Art. 34 of CVM Instruction No. 209, of March 25, 1994, shall be effective with the following wording:

“Art. 34. The fund administrator shall send to the CVM, through the Document Submission System available on the Commission's website, according to the model available on said website, the following information:

I – quarterly, within 15 (fifteen) days after the close of the civil quarter to which they refer, the following information:

a) the fund's net asset value; and

b) the number of shares issued.

II – semi-annually, within 60 (sixty) days after the close of that period, the following information:

a) the net asset value per share;

b) the portfolio composition, discriminating the quantity and type of securities and financial instruments that make it up;

c) the fund's financial statements; and

d) the list of institutions responsible for providing custody services for the securities and financial instruments components of the portfolio.

III – annually, within 90 (ninety) days after the close of the period, the following information:

a) financial statements accompanied by the opinion of the independent auditor;

b) the net asset value per share; and

c) the charges debited to the Fund, as provided in Art. 29, specifying their value and percentage relative to the fund's net asset value.

Sole Paragraph. In the event that the fund's shares are admitted to trading on the market, the administrator shall publish, in accordance with § 4 of Art. 21, annual financial statements and audit opinion within 90 (ninety) days of the close of the fiscal year.” (NR)

Art. 2. CVM Instruction No. 209, of 1994, is hereby amended by adding the following Art. 37-A:

“Art. 37-A The administrator shall simultaneously send to the CVM copies of any communications regarding the fund disseminated to unitholders or third parties.” (NR)

Art. 3. Arts. 8, 45, and 48 of CVM Instruction No. 356, of December 17, 2001, shall be effective with the following wording:

“Art. 8. ......
......
§4. The statements referred to in § 3 of this article must be sent to the CVM, through the Document Submission System available on the Commission's website, within 45 (forty-five) days after the close of the period, and remain available to the fund's condominium owners, as well as be examined during the independent audit. ......” (NR)

“Art. 45. The administering institution must send a monthly report to the CVM, through the Document Submission System available on the Commission's website, according to the model available on said website, observing the deadline of 15 (fifteen) days after the close of each month of the civil calendar, based on the last business day of that month, the following information:

I – balance of investments;

II – net asset value;

III – yield calculated for the period;

IV – value of shares and quantity in circulation;

V – behavior of the portfolio of credit rights, including data and comments on expected and realized performance;

VI – positions held in derivative markets; and

VII – number of unitholders.

Sole Paragraph. Any corrections to the information provided in this article must be communicated to the CVM by the first business day following the date of the respective occurrence.” (NR)

“Art. 48......
......
Sole Paragraph. The administrator must send to the CVM, through the Document Submission System available on the CVM's website, the information provided in items I and II, according to the models available on said website, observing the same deadlines.” (NR)

Art. 4. CVM Instruction No. 356, of 2001, is hereby amended by adding the following Art. 53-A:

“Art. 53-A. The administrator shall simultaneously send to the CVM copies of any communications regarding the fund disseminated to unitholders or third parties.” (NR)

Art. 5. Art. 32 of CVM Instruction No. 391, of July 16, 2003, shall be effective with the following wording:

“Art. 32. The fund administrator shall send to the CVM, through the Document Submission System available on the Commission's website, according to the model available on said website, and also to the unitholder, the following information:

I – quarterly, within 15 (fifteen) days after the close of the civil quarter to which they refer, the following information:

a) the fund's net asset value; and

b) the number of shares issued.

II – semi-annually, within 60 (sixty) days after the close of that period, the following information:

a) the portfolio composition, discriminating the quantity and type of securities and financial instruments that make it up;

b) the fund's accounting statements accompanied by the declaration referred to in item V of Art. 14;

c) the charges debited to the fund, in accordance with the provisions of Art. 27, specifying their value; and

d) the list of institutions responsible for providing custody services for the securities and financial instruments components of the portfolio.

III – annually, within 90 (ninety) days after the close of the fiscal year, the following information:

a) the fiscal year's accounting statements, accompanied by the opinion of the independent auditor;

b) the net asset value per share on the date of the balance sheet closing and its yield for the period; and

c) the charges debited to the fund, in accordance with the provisions of Art. 27, specifying their value and the percentage relative to the fund's average annual net asset value.” (NR)

Art. 6. CVM Instruction No. 391, of 2003, is hereby amended by adding the following Art. 34-A:

“Art. 34-A. The administrator shall simultaneously send to the CVM copies of any communications regarding the fund disseminated to unitholders or third parties.” (NR)

Art. 7. Art. 65 of CVM Instruction No. 398, of October 28, 2003, shall be effective with the following wording:

“Art. 65. The fund administrator shall send to the CVM, through the Document Submission System available on the Commission's website, according to the model available on said website, the following information:

I – quarterly, within 15 (fifteen) days after the close of the civil quarter to which they refer, the following information:

a) the fund's net asset value; and

b) the number of shares issued.

II – semi-annually, within up to 60 (sixty) days, counted from the close of the semester to which they refer:

a) semi-annual report;

b) opinion of the independent auditor, regarding the accounting statements; and

c) list of judicial or extrajudicial demands, whether in defense of unitholders' rights or by them against the administration of FUNCINE, indicating the date of their initiation, the stage in which they are, and the final solution, if any.” (NR)

Art. 8. CVM Instruction No. 398, of 2003, is hereby amended by adding the following Art. 71-A:

“Art. 71-A. The administrator shall simultaneously send to the CVM copies of any communications regarding the fund disseminated to unitholders or third parties.” (NR)

Art. 9. Art. 65 of CVM Instruction No. 399, of November 21, 2003, shall be effective with the following wording:

“Art. 65. ......
......
Sole Paragraph. The administrator must send to the CVM, through the Document Submission System available on the Commission's website, the information provided in items I and II, according to the models available on said website, observing the same deadlines.” (NR)

Art. 10. CVM Instruction No. 399, of 2003, is hereby amended by adding the following Art. 69-A:

“Art. 69-A The administrator shall simultaneously send to the CVM copies of any communications regarding the fund disseminated to unitholders or third parties.” (NR)

Art. 11. Art. 33 of CVM Instruction No. 391, of July 16, 2003, is hereby revoked.

Art. 12. This Instruction enters into force 30 (thirty) days after its publication in the Official Gazette of the Union.

Original signed by

MARCELO FERNANDEZ TRINDADE
President