CVM Instruction No. 563 of May 18, 2015

COMMISSION OF SECURITIES AND EXCHANGE COMMISSION Rua Sete de Setembro, 111/2-5th and 23-34th Floors – Center – Rio de Janeiro - RJ – ZIP: 20050-901 – Brazil Tel.: (21) 3554-8686 - www.cvm.gov.br CVM INSTRUCTION NO. 563, OF MAY 18, 2015 Amends and adds provisions to CVM Instruction No. 555, of December 17, 2014.

THE PRESIDENT OF THE COMMISSION OF SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Board, in a meeting held on May 12, 2015, considering the provisions of arts. 2, item V, 8, item I and 23, § 2 of Law No. 6.385, of December 7, 1976, APPROVED the following Instruction:

Art. 1° The arts. 2, 44, 56, 59, 71, 79, 85, 92, 101, 111, 112, 117, 119, 126, 129, 135 and 141 of CVM Instruction No. 555, of December 17, 2014, shall enter into force with the following wording:

“Art. 2º. ......
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XLIII – administrative fee: fee charged to the fund to remunerate the fund administrator and the providers of the services provided for in art. 78, § 2, except for items VI and VIII and observing art. 85, § 7;
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L – family tie: ascendants, descendants or relatives by affinity, civil and collateral up to the second degree; and ......” (NR)

“Art. 44. ......
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XVII – identification of the fund's risk factors; and ......” (NR)

“Art. 56. ......
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II – make available to the unitholders, monthly or in the period provided for in the regulation for calculation and disclosure of the share, as provided for in item I, letter “b”, account statement containing:
......” (NR)

“Art. 59. ......
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III – supplementary information form, whenever there is a change in its content, within 5 (five) business days of its occurrence; IV – annually, within 90 (ninety) days counted from the closing of the fiscal year to which they refer, the accounting statements accompanied by the opinion of the independent auditor; and V – standardized form with the fund's basic information, whenever there is a change in the regulation, on the date of the start of the validity of the changes decided in assembly. ......” (NR)

“Art. 71. ......
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§ 4º In the event of dismissal of the administrator of an open fund, the qualified quorum referred to in §3º may not exceed half plus one of the issued shares.” (NR)

“Art. 79. ......
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§ 6º The hiring and termination of the service referred to in item VIII of § 2° of art. 78 must be disclosed as a relevant fact in accordance with art. 60.

“Art. 79. ......
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§ 7º The administrator is only authorized to hire, for the provision of the service referred to in item VIII of § 2° of art. 78, a legal entity that:
I – is duly registered with the administrative entities of the organized markets in which the fund's shares are admitted to trading, observing the regulation in force; and ......” (NR)

“Art. 85. ......
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§ 8º In the event of an agreement on remuneration based on the administrative fee and performance fee to be paid directly by the invested fund to investor funds, in accordance with item XIII of art. 132, the value of the corresponding installments of the administrative and performance fees must be subtracted from the values destined by the invested fund to the provisioning or payment of expenses referred to in item XII of art. 132.” (NR)

“Art. 92. ......
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II – exercise, or take steps to exercise, all rights arising from the fund's assets and activities, except as provided for in the supplementary information form regarding the policy on the exercise of the fund's voting rights; and ......” (NR)

“Art. 101. ......
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§1º ......
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IV – ......
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e) any other information deemed relevant; and
V – include the suffix “Investment Abroad” in their name.
......” (NR)

“Art. 111. ......
I – ......
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b) private bonds with a term referred to in letter “a” and that are considered low credit risk by the manager;
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d) committed operations backed by federal public bonds; and II – use derivatives only for portfolio protection (hedge).” (NR)

“Art. 112. ......
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II – ......
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c) shares of index funds that invest predominantly in the assets of letters “a” and “b” and meet item III; and

“Art. 117. ......
§ 1º The acquisition of shares of funds classified as “Fixed Income – External Debt” and of shares of investment funds located abroad by the funds referred to in this article is not subject to the concentration limits by issuer provided for in art. 102. ......”(NR)

“Art. 119. ......
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§ 4 o The percentages referred to in this article must be complied with daily, based on the fund's net assets with a maximum lag of 1 (one) business day. ......” (NR)

“Art. 126. The limits established in items I and II of art. 103, and §§ 6º and 7° of art. 119 are doubled in the investment funds referred to in this Chapter.” (NR)

“Art. 129. ......
I – non-compliance with the limitations of financial asset modalities and the concentration limits by issuer established in arts. 102 and 103;
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III – non-compliance with the obligations contained in items I to V of art. 56; and
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§ 2º The use of the faculty contained in item III does not exempt the administrator:
I – from compliance with the obligations referred to in art. 59; and

“Art. 129. ......
II – the obligation to make the performance statement available to its unitholders, whenever requested.” (NR)

“Art. 135. The accounting statements of each of the funds subject to spin-off, incorporation, merger or transformation, drawn up on the date of the operation, must be audited, within a maximum period of 90 (ninety) days, counted from the date of the effective event, by an independent auditor registered with the CVM, and the criteria used for the equalization of shares between the funds must be stated in an explanatory note. ......” (NR)

“Art. 141. ......
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VIII – fund transformations referred to in art. 137 without CVM authorization; ......” (NR)

Art. 2º Item 3 of Annex 42 to CVM Instruction No. 555, of 2014, shall enter into force with the following wording:

“3. ......
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b. The fund may:
Apply in foreign assets up to the limit of [% of Net Assets] or [no] Apply in private credit up to the limit of [% of Net Assets] or [no] Apply in a single fund up to the limit of [% of Net Assets] or [no] Uses derivatives only for portfolio protection? [Yes/No] Leverage up to the limit of (i) [% of Net Assets] or [no limit] (i) In the calculation of the leverage limit, the value of the margins required in operations with guarantee must be considered, plus the “potential margin” of derivative operations without guarantee. The calculation of “potential margin” of derivative operations without guarantee must be based on the administrator's margin calculation model and cannot be offset with the margins of operations with guarantee.

“Art. 3º Item 5 of Annex 56 to CVM Instruction No. 555, of December 17, 2014, shall enter into force with the following wording:

“5......
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Simulation of Expenses [●+3 years] [●+5 years] Accumulated gross balance (hypothetical - annual gross return of 10%) R$ 1,331.10 R$ 1,610.51 Expected expenses (if the TOTAL EXPENSE RATE remains constant) R$ [●] R$ [●] Hypothetical gross return after deduction of expenses (before the incidence of taxes, entry and/or exit fees, or performance fee) R$ [●] R$ [●] ......” (NR)

Art. 4º. Art. 1 of Annex 101 to CVM Instruction No. 555, of 2014, shall enter into force with the following wording:

“Art. 1º When applying its resources in funds or investment vehicles abroad, the manager and the administrator of the fund referred to in art. 101, § 1º must, within their respective spheres of action, ensure that said investment funds or investment vehicles abroad:
......” (NR)

Art. 5° This Instruction enters into force on the date of its publication.

Signed original by
LEONARDO P. GOMES PEREIRA
President