CVM Instruction No. 501 of July 15, 2011 (Revoked)

CVM INSTRUCTION NO. 501, OF JULY 15, 2011
Amends CVM Instructions No. 406, of April 27, 2004; and No. 460, of October 10, 2007.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Body, in a meeting held on July 13, 2011, based on arts. 2, item V; 8, item I, and 19 of Law No. 6,385, of December 7, 1976, and Law No. 11,478, of May 29, 2007, with wording given by art. 4 of Law No. 12,431, of June 27, 2011, APPROVED the following Instruction:

Art. 1° Art. 2º-A of CVM Instruction No. 406, of April 27, 2004, shall enter into force with the following wording:

“Art. 2º-A The provisions of art. 2º apply also to the funds specified below, if they obtain direct financial support from development agencies:
I – Mutual Investment Funds in Emerging Companies – FMIEE governed by CVM Instruction No. 209, of March 25, 1994; and II – Infrastructure Investment Funds – FIP-IE and Funds for Investment in Participation in Economic Production Intensive in Research, Development and Innovation – FIP-PD&I, governed by CVM Instruction No. 460, of October 10, 2007.”(NR)

Art. 2° The summary and arts. 1º, 2º, 3º, 4º, 5º and 6º of CVM Instruction No. 460, of October 10, 2007, shall enter into force with the following wording:

“Provides for Infrastructure Investment Funds (FIP-IE) and Funds for Investment in Participation in Economic Production Intensive in Research, Development and Innovation (FIP-PD&I) and amends CVM Instruction No. 406, of April 27, 2004”(NR)

“Art. 1º This Instruction provides for Infrastructure Investment Funds (FIP-IE) and Funds for Investment in Participation in Economic Production Intensive in Research, Development and Innovation (FIP-PD&I).”(NR)

CVM INSTRUCTION NO. 501, OF JULY 15, 2011 2

“Art. 2º The provisions of CVM Instruction No. 391, of July 16, 2003, apply to FIP-IE and FIP-PD&I, with the exceptions of the provisions of this Instruction.”(NR)

“Art. 3º The name of the FIP-IE and the FIP-PD&I must contain the expression 'Infrastructure Investment Fund' and 'Fund for Investment in Participation in Economic Production Intensive in Research, Development and Innovation', respectively. Sole paragraph. The name of the fund cannot be added names or expressions that induce an improper interpretation regarding its objectives, its investment policy or its target audience.”(NR)

“Art. 4º FIP-IE and FIP-PD&I must maintain at least 90% (ninety percent) of their net assets invested in shares, subscription bonuses, debentures, convertible or not into shares, or other securities issued by publicly-held or closely-held corporations, as long as permitted by CVM regulation on investment funds in participations, which develop, respectively, new infrastructure projects or economic production intensive in research, development and innovation within the national territory, in the sectors of:
......
III – water and basic sanitation;
IV – irrigation; and
V – other areas considered priorities by the Federal Executive Power.
§ 1º For the purposes of the provision in the caput, projects implemented after January 22, 2007, are considered new.
§ 2º The following are also considered new projects:
I - economic production intensive in research, development and innovation projects implemented from the validity of Law No. 12,431, of June 27, 2011, by specific companies created for such purpose and that comply with the regulation of the Ministry of Science and Technology; and II - expansions of existing projects, implemented or in the process of implementation, as long as the investments and the results of the expansion are segregated through the constitution of a specific purpose company. § 3º FIP-IE and FIP-PD&I have a period of 180 (one hundred and eighty) days after obtaining the registration of operation at the CVM to start their activities and to fit within the minimum investment level established in the caput. § 4º The period provided in § 3º also applies to the reversal of any non-compliance resulting from the closure of a project in which the fund has invested. § 5º The administrator must immediately communicate to the CVM, after the period referred to in § 3º has expired, the occurrence of non-compliance, with the appropriate justifications, also informing the re-compliance of the portfolio, at the time it occurs.”(NR)

“Art. 5º The companies in which FIP-IE and FIP-PD&I invest must follow, at least, the corporate governance practices established by the CVM for companies invested by investment funds in participations.”(NR)

“Art. 6º Each FIP-IE and FIP-PD&I must have, at least, 5 (five) investors, with each investor not being able to hold more than 40% (forty percent) of the shares issued by the FIP-IE or by the FIP-PD&I or obtain returns superior to 40% (forty percent) of the fund's returns.”(NR)

Art. 3° Art. 9º of CVM Instruction No. 460, of October 10, 2007, is repealed.

Art. 4° This Instruction enters into force on the date of its publication.

Signed Original by
MARIA HELENA DOS SANTOS FERNANDES DE SANTANA
President