CVM Instruction No. 553 of October 16, 2014

CVM INSTRUCTION NO. 553, OF OCTOBER 16, 2014

Amends provisions of CVM Instruction No. 301, of April 16, 1999.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Body, in a meeting held on October 15, 2014, based on Law No. 6,385, of December 7, 1976, as well as the provisions of Articles 9, 10, 11, 12, and 13 of Law No. 9,613, of March 3, 1998, and the sole paragraph of Article 14 of the Annex to Decree No. 2,799, of October 8, 1998,

APPROVED the following Instruction:

Article 1. Article 3-A of CVM Instruction No. 301, of April 16, 1999, shall be effective with the following wording:

“Article 3-A ...
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§ 1. In the case of a business relationship between the persons mentioned in Article 2 and a foreign client who is also a client of a foreign institution supervised by a governmental authority similar to the CVM, it is admitted that the measures provided for in this Instruction be adopted by the foreign institution, provided that the CVM is assured access to the data and procedures adopted.

§ 2. The institutions referred to in Article 2 must only initiate any business relationship or continue an existing relationship with the client if the measures established in Articles 3 and 3-A, as applicable, are observed.” (NR)

Article 2. Article 2 of Annex I of CVM Instruction No. 301, of 1999, shall be effective with the following wording:

“Article 2 ...
...

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CVM INSTRUCTION NO. 553, OF OCTOBER 16, 2014

§ 1. The registration must also include a declaration signed and dated by the client or, if applicable, by a legally constituted attorney, regarding the purposes and nature of the business relationship with the institution.

§ 2. For the trading of investment fund shares, it is further mandatory that the registration with the intermediary include prior client authorization through a specific instrument, including a declaration of awareness that:

I – received the regulations and, if applicable, the prospectus or fund document;

II – became aware of the risks involved and the investment policy;

III – became aware of the possibility of negative net asset value, if applicable, and, in this case, of their responsibility for subsequent additional resource contributions.

§ 3. The provisions of § 2 of this Article do not apply to the trading of shares in organized markets.” (NR)

Article 3. This Instruction enters into force on the date of its publication.

Sole Paragraph. The declaration provided for in § 1 of Article 2 of Annex I of CVM Instruction No. 301, of 1999, may be obtained when the registration update referred to in § 2 of Article 3 of CVM Instruction No. 301, of 1999, occurs for already registered clients.

Signed Original

LEONARDO P. GOMES PEREIRA
President

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