CVM Instruction No. 607 of June 17, 2019 (Revoked)

SECURITIES AND EXCHANGE COMMISSION OF BRAZIL
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CVM INSTRUCTION NO. 607, OF JUNE 17, 2019 WITH THE CHANGES INTRODUCED BY CVM INSTRUCTIONS NO. 613/19 AND 624/20 AND BY CVM RESOLUTION NO. 2/20

Provides for the procedure of proceedings related to the sanctioning action within the Securities and Exchange Commission.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION – CVM makes public that the Board, in a meeting held on May 22, 2019, considering the provisions of arts. 8, item I, 9, items V, VI and § 2, 11 and 12 of Law No. 6.385, of December 7, 1976, and art. 33 and following of Law No. 13.506, of November 13, 2017, APPROVED the following Instruction:

CHAPTER I - GENERAL PROVISIONS

Art. 1. This Instruction provides for the investigation of administrative infractions, the procedure of administrative sanctioning proceedings, the application of penalties, the commitment term and the administrative agreement in a supervision process within the Securities and Exchange Commission.

Art. 2. In the proceedings governed by this Instruction, the CVM shall observe the principles of legality, purpose, motivation, reasonableness, proportionality, morality, broad defense, adversarial system, legal certainty, due process of law, presumption of innocence, procedural speed, public interest, impersonality, efficiency and publicity.

CHAPTER II – PRE-SANCTIONING PHASE

Section I – Attribution of Superintendencies

Art. 3. It shall be the responsibility of the superintendencies to investigate administrative infractions, instruct the proceedings and institute administrative sanctioning proceedings aimed at investigating illegal acts and unfair practices by administrators, members of the fiscal council, members of statutory committees and shareholders of open companies, intermediaries and other market participants.

Sole paragraph. In the investigation of infractions, the CVM shall prioritize those of a serious nature, whose imposition of penalties provides greater educational and preventive effect for market participants.

Art. 4. Considering the information obtained in the investigation of administrative infractions, the superintendencies may:

I – refrain from issuing an accusation term in cases where:

a) it concludes that there are no irregularities or that punishability has been extinguished; or

b) it is demonstrated that the conduct is of little relevance, the low significance of the threat or harm to the legally protected good and the possibility of using other supervision instruments or measures that they consider more effective;

II – issue an accusation term, in accordance with art. 6; or

III – propose an administrative inquiry aimed at deepening the collection of additional elements to verify the authorship and materiality of the infraction, in accordance with art. 8.

§ 1. In assessing the relevance of the conduct or the significance of the threat or harm to the legally protected good, the following parameters may be used, among others:

I – the degree of reproach or repercussion of the conduct;

II – the significance of values related to the conduct;

III – the significance of damages caused to investors and other market participants;

IV – the impact of the conduct on the credibility of the capital market;

V – the antecedents of the persons involved;

VI – the good faith of the persons involved;

VII – the regularization of the alleged infraction by the regulated entity; and

VIII – the reimbursement of injured investors.

§ 2. For the purposes of this article, supervision instruments and measures are considered to be the issuance of an alert letter, the prior and coordinated action of a self-regulatory institution, among others.

§ 3. The issuance of an alert letter to the supervised natural or legal person, in accordance with § 2, must clearly indicate the deviation of conduct verified and set a reasonable deadline for the appropriate correction, if applicable.

§ 4. An appeal against the decision contained in item I of the caput is only admissible if the reasoning is absent or if it is inconsistent with the prevailing position of the Board.

§ 5. In the appeal referred to in § 4, it is incumbent upon the appellant to expressly demonstrate the absence of reasoning or the discrepancy with the prevailing position of the Board.

§ 6. The Board's decision in the cases of approval of the appeal provided for in § 4 will not determine the institution of an administrative sanctioning proceeding; it is up to the superintendency, in each case, to eventually complement the reasoning or review the factual circumstances in accordance with the prevailing position of the Board or with new guidance on the matter issued by it, in accordance with § 8 of art. 4.

§ 7. The rule that provides for the appeal to the Board of decisions issued by the CVM superintendents applies to the appeals provided for in § 4 exclusively with respect to deadlines and procedures.

§ 8. The Board may, ex officio or at the request of the superintendency, review a subject matter of an appeal in the form of a consultation, in which case it must express its opinion on the matter.

Section II – Accusation Term

Subsection I – Prior Statement by the Investigated

Art. 5. Prior to the formulation of the accusation, the superintendencies must make efforts to obtain directly from the investigated person clarifications on the facts that may be attributed to them.

Sole paragraph. The provision of the caput is considered met whenever the investigated person:

I – has given personal testimony or voluntarily expressed themselves regarding the facts that may be attributed to them; or

II – has been officially requested to provide clarifications on the facts that may be attributed to them, even if they do not do so.

Subsection II – Requirements

Art. 6. In cases where the superintendency considers that it has conclusive elements regarding the authorship and materiality of the irregularity found, an accusation term must be issued containing:

I – name and qualification of the accused;

II – narrative of the investigated facts that demonstrate the materiality of the infractions investigated;

III – analysis of the authorship of the infractions investigated, containing the individualization of the conduct of the accused, making express reference to the evidence that demonstrates their participation in the infractions investigated;

IV – description of the clarifications provided in accordance with art. 5;

V – the legal or regulatory provisions infringed;

VI – procedure to be observed in the administrative sanctioning proceeding; and

VII – proposal for communication referred to in art. 13, if applicable.

Section III – Opinion of the Specialized Federal Prosecutor's Office (PFE)

Art. 7. Before the citation of the accused to present their defense, the PFE will issue an opinion on the accusation term, within 30 (thirty) days from the date of receipt of the accusation term, with the following scope:

I – examination of compliance with art. 5;

II – objective analysis of the observance of the requirements of art. 6; and

III – examination of the adequacy of the procedure adopted for the administrative sanctioning proceeding.

§ 1. Considering the opinion of the PFE, the superintendency will take the measures it considers appropriate, including archiving the process, adapting the procedural routine or making any adjustments to the accusation term.

§ 2. The superintendent must justify the non-adoption of any measures recommended by the opinion.

§ 3. The opinion of the PFE is not mandatory in administrative sanctioning proceedings submitted to the simplified procedure referred to in art. 73 of this Instruction.

§ 4. Without prejudice to the issuance of the opinion referred to in this article, the superintendencies may request direct legal advice from the PFE even during the instruction phase.

Section IV – Administrative Inquiry

Subsection I – Institution

Art. 8. It is the responsibility of the superintendencies to present a proposal for the institution of an administrative inquiry, addressed to the General Superintendency, which may:

I – approve the institution of an administrative inquiry to investigate indications of violations of capital market regulations; or

II – return the administrative proceeding to the superintendencies, when it considers that there is no just cause for the institution of the inquiry.

Sole paragraph. The administrative inquiry is considered instituted on the date of the Ordinance of the General Superintendent that provides for its institution.

Subsection II – Conduct and Accusation

Art. 9. The administrative inquiry must be conducted by the Sanctioning Processes Superintendency – SPS.

Art. 10. The investigation work must be concluded within 120 (one hundred and twenty) days from the date of institution of the administrative inquiry, and such deadline may be extended, more than once, through a motivated request sent to the General Superintendency, indicating a new deadline.

Sole paragraph. The General Superintendency, based on the motivation presented to it, will review the request for extension of the deadline, and may, if applicable, set a deadline lower than requested.

Art. 11. Once there are sufficient indications regarding the authorship and materiality of the infraction, the SPS must prepare an accusation document, observing the provisions of arts. 5, 6 and 7 of this Instruction.

Subsection III – Archiving

Art. 12. The SPS must propose to the General Superintendency the archiving of the administrative inquiry whenever:

I – it does not obtain sufficient evidence to formulate the accusation;

II – it is convinced of the non-existence of an infraction or the occurrence of the extinction of punishability; or

III – it observes, after the deepening of the procedural instruction, the hypothesis referred to in art. 4, I, “b”.

Sole paragraph. In any of the cases of this article, the investigated persons must be notified of the decision that accepts the proposal for archiving.

Section V – Communications to Other Bodies and Entities

Art. 13. It is the responsibility of the General Superintendency to effect communications:

I – to the Public Ministry, when there are indications of crimes defined by law as public action; and

II – to other bodies and entities, when there are indications of illicit acts in areas subject to their respective supervision.

§ 1. The PFE must issue a prior opinion on the communications provided for in this article.

§ 2. The General Superintendency must communicate to the bodies or entities mentioned in this article, regarding the situations that gave rise to the communications made, the occurrence of the closure of the process and the conclusions reached within the CVM.

§ 3. Communications may be made in a confidential manner, whenever this is necessary to ensure the effectiveness of the investigations.

Section VI – Secrecy, Restriction of Access and Other Procedural Provisions

Art. 14. In the interest of the investigations and procedural instruction, confidential treatment may be given to the records, documents, objects or information and procedural acts, to the extent strictly necessary for the elucidation of the facts.

Sole paragraph. From the denial of access based on the hypothesis of this article, the investigated person may appeal to the Board.

Art. 15. Ex officio or upon request by the interested party, third-party access to the records will be restricted due to secrecy provided by law or because it constitutes information related to the business activity of natural or legal persons of private law whose disclosure may represent a competitive advantage to other economic agents.

Art. 16. The superintendencies must send the records, by dispatch, to the Coordination of Control of Administrative Processes – CCP, which will effect the citation of the accused to present their defense.

Sole paragraph. Documents and information with restricted access, not available to third parties, must be noted in the dispatch of the records to the CCP, without prejudice to the proper classification of documents within the electronic process.

Art. 17. Until the designation of the Rapporteur of the administrative sanctioning proceeding, it is the responsibility of the superintendencies to decide on procedural incidents raised.

Art. 18. In the proceedings for the investigation of infractions governed by this Chapter, arts. 24, 25, 39, 40, 43 and 48 shall be observed, insofar as applicable.

Art. 19. After hearing the PFE, the Board may approve manuals and procedures aimed at standardizing and improving the formal aspects of procedural acts related to this Chapter.

CHAPTER III – ADMINISTRATIVE SANCTIONING PROCEEDING

Section I – Communication of Procedural Acts

Subsection I – General Provision

Art. 20. The electronic availability of an act, in accordance with this Instruction, or the publication of an act in the “Electronic Diary” section of the CVM website on the worldwide computer network replaces any other means of official publication, for any legal effects, except when the law establishes a specific form.

Subsection II – Citation

Art. 21. The administrative sanctioning proceeding is considered instituted with the citation of the accused to present their defense.

§ 1. The citation shall contain:

I – the identification of the accused;

II – the indication of the facts attributed to the accused;

III – the purpose of the citation;

IV – the deadline for the presentation of defense;

V – the information that the process will continue, regardless of their appearance;

VI – the duty of the accused, or of a proxy appointed by them, to register in the electronic process system existing on the CVM website on the worldwide computer network for the purpose of accessing the records and subsequent monitoring of the progress of the process; and

VII – the notice that the accused may propose the celebration of a commitment term, in accordance with the provisions of Chapter IV of this Instruction.

§ 2. The requirement referred to in item II of § 1 may be met by attaching the term or the accusation document.

§ 3. When it is a process in physical medium, the citation must contain, in addition to the requirements provided for in § 1, the accusation term or the accusatory document, depending on the case.

§ 4. The accused who, although cited, does not present a defense will be considered in default.

Art. 22. Citation may be effected by notice in the process, by electronic means or by postal route.

Art. 23. Electronic citation will provide access to the CVM electronic process system (SEI) and will be carried out by correspondence addressed to the electronic address existing in the SEI, or informed by the accused during the procedure that gave rise to the administrative sanctioning proceeding.

§ 1. If communication by electronic means is not possible, citation must be carried out by postal route, with receipt confirmation, sent to the address of the accused available:

I – in the CVM registration database, when it is a regulated person or their legal representatives; or

II – in the database of the Brazilian Federal Revenue Service, in other cases.

§ 2. Citation must be effected by publication of a notice in the “Electronic Diary” section of the CVM website on the worldwide computer network in case of evasion or when:

I – the place where the accused is located is unknown, uncertain or inaccessible; or

II – access to the CVM electronic process system (SEI) is provided by correspondence addressed to the electronic address and the accused does not access the SEI within six days.

§ 3. Citation is considered effected on the date:

I – of the notice to the accused or to a proxy appointed by them;

II – of receipt at the recipient's address;

III – of access to the CVM electronic process system;

IV – of the sixth day subsequent to the availability of the act in the SEI if the interested party does not access it within the said deadline;

V – when refusal is attested; or

VI – of the publication of the notice in the “Electronic Diary” section of the CVM website on the worldwide computer network.

Subsection III - Notification

Art. 24. Notification of other procedural acts must be effected through the electronic process system existing on the CVM website on the worldwide computer network.

§ 1. If electronic notification is not possible, in addition to the provisions of art. 21, § 1, item VI, it must be effected through publication in the “Electronic Diary” section of the CVM website on the worldwide computer network.

§ 2. Notification is considered effected on the date:

I – of access to the CVM electronic process system, in accordance with the caput, or on the sixth day subsequent to the availability of the act by electronic means if the interested party does not access it by that day; or

II – of the publication of the act on the CVM website on the worldwide computer network, in the case of notification carried out in accordance with § 1.

Section II – Calculation of Deadlines

Art. 25. The deadlines mentioned in this Instruction will be counted in business days, excluding the start date and including the due date, unless there is an express provision to the contrary.

§ 1. The start date of the deadline is considered:

I – the date of notice to the interested party or their proxy;

II – the date of receipt at the recipient's address;

III – the date of access to the CVM electronic process system;

IV – the sixth day subsequent to the date of availability of the act in the CVM electronic process system, in the case of art. 24, §2, I;

V – the sixth day subsequent to the availability of the act on the CVM website on the worldwide computer network; or

VI – the thirty-first day subsequent to the date of publication of the citation notice on the CVM website on the worldwide computer network.

§ 2. A business day is considered any day that is not a weekend or holiday in any of the locations where the CVM has representation.

§ 3. The deadline will be extended when the unavailability of the CVM electronic process system is demonstrated.

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

§ 4º In the absence of a specific deadline defined in this Instruction, the interested party must manifest themselves within the period determined in the summons itself, which may not be less than 10 (ten) days.

§ 5º In the case of § 4º, an extension of the deadline is permissible, upon a reasoned request by the interested party.

Art. 26. The date of delivery of documents is considered to be:
I – the date of protocol, when the documentation is delivered directly on behalf of the CVM, or of receipt in the CVM's electronic system; or II – the date of mailing at the post office or in another regular dispatch service for delivery of packages and documents.

Section III – Preclusion and Default

Art. 27. Preclusion occurs when the accused performs a specific procedural act or when the period provided for its realization has elapsed.

Art. 28. Default does not imply confession regarding matters of fact and does not render the allegations of the accusation uncontroversial; the party in default may intervene in any phase, receiving the process in the state it is in, without right to repetition of acts already performed.

Section IV – Defense

Art. 29. The accused must present their defense in writing within 30 (thirty) days after citation, at which time they must attach documents intended to prove their allegations and specify other evidence they intend to produce, observing the provisions of arts. 42 and 43 of this Instruction.

§ 1º The interested party must manifest their intention to enter into a commitment term by the end of the period for presenting the defense, without prejudice to the burden of presenting such defense.

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§ 2º The manifestation of intention or the presentation of a proposal for a commitment term does not suspend or interrupt the period for presenting the defense.

§ 3º Deadlines for all manifestations by the accused will be counted individually, with only one extension permitted for the same period, upon a duly reasoned request.

§ 4º Accused parties who appoint the same attorney and present a joint defense will have the same period to manifest themselves in the records, counted from the last citation effected, under the terms of art. 29, § 3º, of this Instruction.

§ 5º In sanctioning processes instituted against multiple accused parties, the defenses will be considered confidential and will not be provided to third parties or other accused parties until the expiration of the final deadline for presenting defenses.

Art. 30. The defense may be signed by the accused or by an attorney appointed by them.

§ 1º A defense signed by an attorney who is not constituted in the records will be admitted provided that the respective instrument of mandate is presented to the CVM within 15 (fifteen) days subsequent to the presentation of the defense.

§ 2º If the period referred to in § 1º elapses without the instrument of mandate being exhibited or without the accused ratifying it in their own name, the defense will be deemed non-existent and removed from the records, resulting in default.

Section V – Order of the Process in the Collegiate Body

Subsection I – Appointment of the Rapporteur

Art. 31. After the presentation of the defense, or if the period provided in art. 29 has elapsed without this having been presented, the records will be forwarded to the Collegiate Body for the appointment of the Rapporteur by lottery.

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

§ 1º The lottery will be conducted openly during an ordinary meeting of the Collegiate Body and using a mechanism, verifiable in nature, that ensures the uniform distribution of processes among the members of the Collegiate Body.

§ 2º In the event that all accused parties present proposals for a commitment term, the appointment of the Rapporteur will await the result of the review of the opinion of the Commitment Term Committee by the Collegiate Body.

Art. 32. A member of the Collegiate Body is disqualified when:
I – they are the accused;
II – they have direct or indirect interest in the matter; III – they have participated or may participate as an expert, witness, or representative, or if such situations occur regarding their spouse, partner, or relatives and affiliates up to the third degree; IV – they are the spouse, partner, or relative and affiliate up to the third degree of any of the interested parties; V – they are litigating judicially or administratively with the interested party or their respective spouse or partner; or VI – any of the other cases provided for in law occur.

§ 1º Suspicion must be declared when there is intimate friendship or notorious enmity with any of the interested parties or with their respective spouses, partners, relatives, and affiliates up to the third degree.

§ 2º Disqualification or suspicion may be declared at any time, and in the first case, the reason must be stated.

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§ 3º Interested parties in the lotteried processes may, at the first opportunity, challenge the disqualification or suspicion of the designated rapporteur, in which case the said rapporteur may recognize the challenge in the manner of § 2º.

§ 4º In the event that the Rapporteur does not declare themselves disqualified or suspicious, under the terms of § 3º, the process will be brought to the Collegiate Body for decision, with the challenger not participating in the vote to examine the disqualification or suspicion.

§ 5º If any of the hypotheses of disqualification and suspicion occur, a new lottery will be immediately held, ensuring compensation between the distributed processes.

Art. 33. Upon the definitive departure of the Rapporteur, administrative sanctioning processes under their rapporteurship must be grouped in chronological order, observing cases of connected processes, and redistributed by lottery, provisionally, in equal quantities, to the other members of the Collegiate Body, until the inauguration of their successor.

Art. 34. To the member of the Collegiate Body who assumes the vacant position belongs, definitively, subject to hypotheses of disqualification or suspicion, the condition of Rapporteur of the processes attributed to their predecessor.

Art. 35. In cases of disqualification or suspicion of the new member of the Collegiate Body, the person designated in the form of art. 33 will remain as Rapporteur, definitively.

Art. 36. Processes will be distributed by connection when:
I – the proof of one infraction or any of its elementary circumstances influences the proof of another infraction; or II – the conduct evaluated within the scope of the respective processes is linked by factual circumstances.

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§ 1º Distribution by connection must be raised in a reasoned manner by the responsible superintendency, preferably in the formulation of the accusation or until the designation of the Rapporteur.

§ 2º Without prejudice to the provisions of the preceding paragraph, connection may be known at any time, ex officio or at the request of the accused, except in the case of processes that have already had a final decision issued by the Collegiate Body.

§ 3º If redistribution of processes is necessary due to connection, it will be made to the first Rapporteur drawn by lottery.

§ 4º Distribution of a process by connection to another that has already had a final decision issued by the Collegiate Body is prohibited.

§ 5º Connected processes must be appreciated in the same judgment session, unless there is a reasoned decision by the Rapporteur.

§ 6º The Collegiate Body may, in a reasoned decision:
I – determine free distribution of connected processes when, in its judgment, the conditions referred to in items I and II of the caput of this article do not pose a risk of contradiction or conflict between the decisions to be issued; or II – determine a meeting for joint appreciation or judgment of processes that may generate a risk of issuing contradictory or conflicting decisions if decided separately, even if it is not a situation specifically provided for in items I and II of the caput.

Art. 37. Occurrences of disqualification, suspicion, and connection, when resulting in redistribution of processes, must be compensated at the time of the lottery for distribution of new processes among the members of the Collegiate Body.

Art. 38. After the designation of the Rapporteur, the superintendency may, at its discretion, offer complementary technical manifestation regarding the reasons for the defense, within 30 (thirty) days

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019 counted from the meeting of the Collegiate Body in which the lottery or distribution by connection was held.
Sole Paragraph. In the event that the superintendency adopts the measure provided for in the caput, the Rapporteur must open an equal period for a new manifestation by the defense.

Subsection II – Incidents and Nullities

Art. 39. Unless otherwise provided, procedural incidents will be decided by the Rapporteur and do not suspend the flow of deadlines nor prevent the practice of procedural acts or procedures in progress or subsequent.

§ 1º From the decision of the Rapporteur, an appeal lies to the Collegiate Body within 10 (ten) days.

§ 2º For the benefit of procedural speed, the Rapporteur may opt to submit the procedural incident directly to the Collegiate Body, in an administrative meeting or judgment session.

§ 3º In occasional absences, urgent procedural incidents may be decided by another member of the Collegiate Body, observing descending order of seniority.

Art. 40. The nullity of any procedural act only prejudices those subsequent ones that depend on or derive from it.
Sole Paragraph. Acts that present curable irregularities and that do not cause prejudice to the accused may be validated by the Rapporteur or by the Collegiate Body, as the case may be.

Subsection III – Rectification of the Accusation

Art. 41. The Rapporteur will return the records to the superintendency that formulated the accusation, if the term of accusation or the accusatory piece did not observe the provisions of art. 6º, items I, IV, V, or VI.

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Sole Paragraph. The superintendency must complement the accusation and forward the process for notification of the accused or propose to the Collegiate Body the archiving of the process if it concludes by the non-existence of infraction or extinction of punishability.

Subsection IV – Production of Evidence

Art. 42. The burden of proof of the allegation rests with whoever makes it, but it is nevertheless facultative for the Rapporteur to determine, at any time, the carrying out of diligences, in addition to those eventually requested by the accused in their defense.

Art. 43. It falls to the Rapporteur to decide on the request for evidence formulated in the defense of the accused, as well as to preside over the diligences necessary for its production, if the request is granted.

§ 1º Any cost for the production of evidence required by the accused must be borne by them.

§ 2º The accused who requests the production of evidence based on information and data archived in the CVM must specify the documents they intend to be attached to the process.

§ 3º The Rapporteur must deny, in a reasoned manner, illicit, unnecessary, or dilatory evidence.

§ 4º Considering the circumstances of the process, the Rapporteur may forward the request for production of evidence to the decision of the Collegiate Body, presenting a report and vote.

Art. 44. Diligences, when necessary, may be carried out by any of the superintendencies, at the discretion of the Rapporteur.

Art. 45. The accused, according to the type of evidence to be produced, must be informed of the date and location where it will be collected, so that they may, if they wish, personally or through their representative, accompany its production.

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Art. 46. Accused parties must be granted a period of 15 (fifteen) days to manifest themselves regarding the evidence produced, regardless of whether they accompanied its production or not.

Subsection V – New Legal Definition of the Fact

Art. 47. The Collegiate Body may give the fact a different legal definition than that contained in the term of accusation or the accusatory piece, even as a result of proof not mentioned therein, but existing in the records, indicating the accused affected by the new legal definition and determining the notification of such accused to amend their defenses, within 30 (thirty) days from receipt of the notification, with the production of new evidence permitted, observing the provisions in Subsection IV.

Sole Paragraph. The notification referred to in the caput must be accompanied exclusively by the minutes containing the decision of the Collegiate Body regarding the new legal definition of the facts.

Subsection VI – Request for Review Formulated by Third Parties

Art. 48. It falls to the Rapporteur to analyze the confidentiality of the information contained in the administrative sanctioning process, aiming at granting a review requested by third parties.

Sole Paragraph. The Rapporteur may return the process to the originating superintendency for analysis of the confidentiality of documents or information deemed confidential, not available to third parties, attached to the records until the distribution of the process.

Section VI – Judgment

Art. 49. The process will be judged by the Collegiate Body, in a public session, summoned with at least 15 (fifteen) days' advance notice, with access by third parties potentially restricted due to public interest.

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Art. 50. The session will be presided over by the President of the CVM or, in their absence or disqualification, by their eventual substitute and will only be realized with the presence of at least 3 (three) members of the Collegiate Body.

§ 1º The participation of members of the Collegiate Body in judgment sessions may occur via videoconference.

§ 2º In the judgment of administrative sanctioning processes where no accused or none of their respective attorneys appointed in the records appear, the session may be held electronically.

§ 3º Considering the progress of the session's work, the President is authorized to suspend it and restart it on the next business day, independent of new summons and publication.

§ 4º A session that does not take place, due to force majeure, may be transferred to the next business day, at the previously scheduled hour, independent of new summons and publication.

Art. 51. The Rapporteur may, at their discretion, make the process report available to the parties and other members of the Collegiate Body before the judgment session, with its reading being dispensed with.

Sole Paragraph. The prior availability of the report on the CVM's electronic page has a merely informative character, allowing the Rapporteur adjustments and complements.

Art. 52. The accused or their legal representative will be granted a maximum period of 15 (fifteen) minutes, extendable, at the discretion of the Session President, by up to 15 (fifteen) minutes, to proceed with the oral defense of the case, after the reading of the report, observing the provisions of art. 51.

Art. 53. After the oral defense of the case, the PFE (Legal Practice Office) will be permitted to manifest orally.

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Sole Paragraph. If the PFE manifests, the defense will have a new opportunity to pronounce itself on the object of such manifestation.

Art. 54. If clarification of controversial points is necessary, the Collegiate Body may withdraw from the session for examination, or suspend the judgment.

Art. 55. In the judgment session, each member of the Collegiate Body will cast one vote, and deliberations will be taken by majority.

Sole Paragraph. In case of a tie, the position most favorable to the accused shall prevail.

Art. 56. The decision to be issued will contain the process report, the grounds, the conclusion, and the penalties applied, if applicable.

Art. 57. After the oral presentations conclude, the President will take the vote of the Rapporteur and the other members, preferably in ascending order of seniority, with the judgment session potentially being suspended by a request for review made by a member of the Collegiate Body.

§ 1º The Rapporteur is permitted to present their vote succinctly, with the reasons for deciding, and it is permitted that the judgment of processes concerning similar subjects be carried out in a block.

§ 2º The request for review does not prevent other members of the Collegiate Body from anticipating their votes if they feel qualified to do so, and the votes issued must be recorded in the minutes.

§ 3º In the session where the judgment is resumed, votes already issued will be counted, even if the member of the Collegiate Body who issued the vote does not appear at the session or has left the exercise of the position, with the substitute not being able, in any of the cases, to manifest themselves on an issue already appreciated.

§ 4º In the event of a change in the composition of the Collegiate Body, the parties will be permitted to make a new oral argument, even if they have already done so.

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§ 5º The rule of § 3º does not apply when new relevant facts or evidence capable of significantly modifying the decision-making context come to integrate the records, in which hypothesis any interested party may raise a question of order to be resolved by the Collegiate Body.

§ 6º If the Collegiate Body decides on the occurrence of the exception provided for in § 5º, votes previously issued will be disregarded, a new oral argument may be carried out, and it will fall to the current members of the Collegiate Body to judge the process, through the elaboration of a new report and inclusion in the agenda by the Rapporteur.

Art. 58. In any hypothesis of suspension of judgment, it falls to the Rapporteur to decide on the extraordinary production of evidence, under the terms of arts. 42 to 46 of this Instruction.

Art. 59. The decision issued, regardless of whether there is an appeal or not, will be disclosed and published in the "Electronic Diary" section of the CVM's page on the worldwide computer network in the form of a summary containing, at minimum, the identification of the accused, the infractions imputed to them, and the penalties or acquittals, as the case may be.

Section VII – Dosimetry of Penalties

Art. 60. The CVM may impose the following penalties, isolated or cumulatively:
I – warning;
II – fine;
III – temporary ineligibility, up to a maximum of 20 (twenty) years, for the exercise of the position of administrator or fiscal councilor of an open company, of an entity of the distribution system, or of other entities that depend on authorization or registration in the Securities and Exchange Commission; IV – suspension of authorization or registration for the exercise of the activities governed by Law No. 6.385, of 1976;

COMMISSION OF SECURITIES (CVM)
Rua Sete de Setembro, 111/2-5º and 23-34º Floors, Centro, Rio de Janeiro/RJ – ZIP: 20050-901 – Brazil - Tel.: (21) 3554-8686 Rua Cincinato Braga, 340/2º, 3º and 4º Floors, Bela Vista, São Paulo/SP – ZIP: 01333-010 – Brazil - Tel.: (11) 2146-2000 SCN Q.02 – Bl. A – Ed. Corporate Financial Center, S.404/4º Floor, Brasília/DF – ZIP: 70712-900 – Brazil - Tel.: (61) 3327-2030/2031 www.cvm.gov.br CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

V – temporary ineligibility, for a maximum of 20 (twenty) years, to exercise the activities referred to in Law No. 6,385, of December 7, 1976; VI – temporary prohibition, for a maximum of 20 (twenty) years, to practice certain activities or operations, for members of the distribution system or other entities that depend on authorization or registration with the Securities and Exchange Commission (CVM); and VII – temporary prohibition, for a maximum of 10 (ten) years, to act, directly or indirectly, in one or more modalities of operation in the securities market.

Art. 61. The fine penalty shall not exceed the highest of the following values:
I – R$ 50,000,000.00 (fifty million reais);
II – double the value of the issuance or the irregular operation; III – 3 (three) times the amount of the economic advantage obtained or the loss avoided as a result of the offense; or IV – double the damage caused to investors as a result of the offense.

§ 1º In cases of recidivism, a fine of up to triple the values set forth in items I to IV of the main text may be applied.

§ 2º In cases where the administrative offense is also theoretically classified as a crime under Law No. 6,385, of 1976, the conviction of the accused shall not result solely in a warning penalty.

Art. 62. In determining the penalty, unless a warning penalty is applied, the Board shall initially set the base penalty, subsequently applying aggravating and mitigating circumstances, as well as the penalty reduction cause, in that order.

Sole paragraph. The Board shall consider in the dosimetry other sanctions regarding the same facts, finally applied by other authorities, with the burden on the accused to demonstrate, until the judgment of the process by the Board, the applicability of this circumstance.

Art. 63. In setting the base penalty, the Board shall observe the principles of proportionality and reasonableness, as well as the economic capacity of the offender and the reasons justifying the imposition of the penalty.

§ 1º If the criterion referred to in Art. 61, item I, is adopted, the base fine penalty shall observe the limits applicable to each offense, provided in Annex 63, without prejudice to the cumulative application of other penalty modalities described in Art. 60 of this Instruction.

§ 2º In the case of § 1º where the offense is not provided for in Annex 63, the Board shall, based on the severity of the conduct, classify it into one of the groups provided for in said Annex.

§ 3º The base penalty for the penalties described in Art. 60, items III to VI, shall be fixed in months and may not exceed 10 (ten) years.

§ 4º The base penalty for the penalty described in Art. 60, item VII, shall be fixed in months and may not exceed 5 (five) years.

Art. 64. The penalties of suspension, ineligibility, and prohibition shall only be applied in cases of serious offense, as defined in CVM regulations, or in cases of recidivism.

Sole paragraph. Within the scope of Law No. 6,404, of December 15, 1976, offenses described in Annex 64 of this Instruction are considered serious.

Art. 65. The following are aggravating circumstances, when they do not constitute or qualify the offense:
I – the systematic or repeated practice of irregular conduct; II – the high damage caused;

III – the significant advantage gained or sought by the offender; IV – the existence of relevant damage to the image of the securities market or the segment in which it operates; V – the commission of an offense through deceit, fraud, or simulation; VI – the compromise or risk of compromise of the issuer's solvency; VII – the violation of fiduciary duties arising from the position, role, or function held; and VIII – the concealment of evidence of the offense through deceit, fraud, or simulation.

§ 1º The fine penalty shall be increased by up to 25% (twenty-five percent) for each verified aggravating circumstance.

§ 2º The penalties of suspension, ineligibility, and prohibition shall be increased by up to 25% (twenty-five percent) for each verified aggravating circumstance, considering the number of months of the base penalty and disregarding fractions.

§ 3º Recidivism shall occur when the agent commits a new offense after having been punished by virtue of a final administrative decision, unless 5 (five) years have elapsed since the fulfillment of the respective punishment or the extinction of the penalty.

Art. 66. The following are mitigating circumstances:
I – the confession of the offense or the provision of information regarding its materiality; II – the offender's good prior record; III – the regularization of the offense;

IV – the good faith of the accused; and
V – the effective adoption of internal mechanisms and procedures for integrity, audit, and encouragement of reporting irregularities, as well as the effective application of codes of ethics and conduct within the legal entity, evaluated by a public or private entity of recognized specialization.

§ 1º The penalty may also be mitigated due to relevant circumstances, prior or subsequent to the offense, although not expressly provided for in the items of the main text.

§ 2º The incidence of mitigating circumstances does not result in the decharacterization of the severity of the conduct.

§ 3º The fine penalty shall be reduced by up to 25% (twenty-five percent) for each verified mitigating circumstance.

§ 4º The penalties of suspension, ineligibility, and prohibition shall be reduced by up to 25% (twenty-five percent) for each verified mitigating circumstance, considering the number of months of the base penalty and disregarding fractions.

§ 5º The mitigating circumstance provided for in item I of the main text of this article shall not be applied in the dosimetry of the penalty of the accused who has entered into an administrative agreement in a supervision process referred to in Art. 30 of Law No. 13,506, of November 13, 2017, regarding the facts treated in the process.

Art. 67. If the financial damage is fully repaired until the judgment of the process by the Board, the penalty shall be reduced by 1/3 (one third) to 2/3 (two thirds).

Sole paragraph. The reduction referred to in the main text shall apply to the value of the penalty resulting from the incidence of aggravating and mitigating circumstances on the base penalty.

Art. 68. The procedure provided for in Arts. 62 to 66 does not apply to penalties imposed based on Arts. 60, I, and 61, II, III, and IV.

Art. 69. The CVM may prohibit those convicted from contracting, for up to 5 (five) years, with official financial institutions and from participating in bids that involve acquisitions, alienations, realization of works and services, and concessions of public services, within the scope of the federal, state, district, and municipal public administration and entities of indirect public administration.

Sole paragraph. The penalty referred to in the main text is restricted to offenses of a serious nature, and its application shall observe the principles of reasonableness and proportionality, without prejudice to the other penalties provided for in this Section.

Section VIII – Appeal

Art. 70. From the Board's condemning decision, an appeal may be filed to the Resources Council of the National Financial System with devolutive and suspensive effects, observing the provisions of Arts. 71 and 72, to be filed within 30 (thirty) calendar days from notification.

Art. 71. The appeal filed with the Resources Council of the National Financial System, against a decision imposing the penalties provided for in items III to VII of Art. 60 of this Instruction, shall be received only with devolutive effect, and it shall be up to the penalized party to request the suspensive effect of the appeal to the Board, through a separate petition to be presented at the time of filing the appeal.

§ 1º In analyzing the request, the Board shall consider the circumstances of the process, especially those referred to in Arts. 65 and 66 of this Instruction.

§ 2º The request shall be processed in separate records and shall not obstruct the immediate forwarding of the appeal to the Resources Council of the National Financial System.

§ 3º The first-instance condemning decision shall begin to produce effects:
I – after the deadline for appeal established in Art. 70 has expired, without the appeal having been filed or without the request for suspensive effect having been presented; and

II – after the notification of the final CVM decision denying suspensive effect to the appeal.

§ 4º If any of the circumstances in § 3º occur, the CVM shall notify the open company, the entity part of the distribution system, or another entity authorized or registered with the CVM in which the penalized party acts, within 5 (five) days, counted from the date scheduled for the decision to produce effects, to promote the removal of the penalized party from the position within a period of up to 60 (sixty) days, counted from the date of receipt of the notification, and to communicate the fact to the CVM within 5 (five) days, counted from the date of effective removal.

§ 5º The deadline for fulfilling the penalties referred to in the main text shall be counted from the date the CVM receives, from the penalized party or from each entity in which he acted, communication of effective removal from the position, accompanied by documents proving the fact.

§ 6º If the penalized party is not exercising the activity, the deadline for fulfilling the penalty shall begin on the date the circumstances described in § 3º occur.

§ 7º The deadline for fulfilling the penalties referred to in the main text shall be automatically suspended whenever the terms of the condemning decision are disrespected, without prejudice to the imposition of applicable penalties.

Art. 72. The appeal filed against a decision imposing penalties of warning or fine shall have suspensive effect.

Sole paragraph. In case of accumulation of the penalties described in Art. 60, the appeal shall have automatic suspensive effect only regarding those described in the main text, and the penalized party may request suspensive effect for other types of penalties, in the manner of Art. 71.

Section IX – Simplified Rite Administrative Sanctioning Process
Subsection I – Acts Prior to Judgment

Art. 73. The administrative sanctioning process related to the offenses provided for in Annex 73 of this Instruction shall be subject to the simplified rite, which, due to their level of complexity, do not require ordinary evidentiary production.

§ 1º If the Superintendent opts to instigate a single procedure to investigate an offense covered by Annex 73 of this Instruction, and an offense of another nature, the administrative sanctioning process shall observe the ordinary rite.

§ 2º Administrative inquiries and their developments shall observe the ordinary rite.

Art. 74. After the presentation of defenses or default being configured, the records shall be forwarded to the superintendency that formulated the accusation, which shall prepare, within 60 (sixty) days from receipt of the records, a report containing:
I – a summary of the accusation and the defense; II – a record of the main occurrences during the progress of the process; and III – analysis of the superintendency regarding the defense arguments and the validity of the accusation.

§ 1º Once the report referred to in this article has been prepared or completed, and provided that the accused is not in default, the accused shall be notified to, within 15 (fifteen) days, present a specific manifestation regarding the report, after which, with or without manifestation, the process shall proceed to the designation of a Rapporteur.

§ 2º Without prejudice to the provisions of § 1º, the deadline provided therein may be exceptionally extended by the superintendency, for an equal period, due to a duly justified request presented by the accused, justifying the impossibility of its fulfillment.

§ 3º Within 30 (thirty) days from its receipt, the Rapporteur shall return the records to the superintendency that formulated the accusation, for completion, if the report has not observed the provisions of this article.

§ 4º The rules of § 1º of this article apply if the accused wishes to manifest regarding the completion of the report referred to in § 3º above.

Subsection II – Judgment

Art. 75. The Rapporteur shall convene a public session for judgment of the process within a maximum of 120 (one hundred and twenty) days from its distribution.

Art. 76. The Rapporteur may, at his discretion, adopt the report referred to in Art. 74.

Art. 77. In the judgment session, the members of the Board may justify their vote by referring to the reasons set forth in the report referred to in Art. 74.

Art. 78. The decision to be issued shall contain, at minimum, the report, which may be that referred to in Art. 74, the conclusion, and the penalties applied, if applicable.

Art. 79. The provisions of this Instruction regarding the ordinary rite apply subsidiarily to the procedure provided for in this Section.

CHAPTER IV – COMMITMENT TERM
Section I – General Provisions

Art. 80. The commitment term shall be celebrated in the cases, in the manner, and for the purposes provided for in Law No. 6,385, of 1976.

Art. 81. The celebration of a commitment term shall not imply confession regarding the matter of fact, nor recognition of the illegality of the conduct analyzed.

Section II – Proposal of Commitment Term

Art. 82. The interested party in the celebration of a commitment term may present a written proposal to the CVM, in which they commit to:
I – cease the practice of activities or acts considered illegal, if applicable; and II – correct the irregularities pointed out, including indemnifying the damages.

§ 1º The interested party shall manifest their intention to celebrate a commitment term within the deadline for presenting the defense.

§ 2º The complete proposal of commitment term shall be forwarded to the CCP within 30 (thirty) days after the presentation of the defense.

§ 3º The presentation of a proposal for the celebration of a commitment term shall be admitted even before or during the preliminary investigation phase of the facts, which, in this case, shall be forwarded to the superintendency responsible for the investigation.

Section III – Analysis of the Proposal

Art. 83. After hearing the PFE regarding the legality of the commitment term proposal, the General Superintendency shall submit the commitment term proposal to the Commitment Term Committee, which shall present an opinion on the opportunity and convenience of celebrating the commitment, and the adequacy of the proposal formulated by the accused or investigated, proposing to the Board its acceptance or rejection, based on the criteria established in Art. 86.

§ 1º The composition and functioning of the Commitment Term Committee shall be regulated by a Ordinance of the President of the CVM.

§ 2º In addition to the holder of the General Superintendency, who will coordinate it, the Commitment Term Committee shall be formed by, at minimum, 5 (five) superintendents expressly designated by the President of the CVM.

§ 3º The Commitment Term Committee shall manifest regarding the commitment term proposal within a maximum of 30 (thirty) days, counted from the date of receipt of the PFE's opinion.

§ 4º The Commitment Term Committee, if it deems it convenient, may, before preparing its opinion, negotiate with the proponent the conditions of the commitment term proposal that seem most adequate.

§ 5º The negotiation between the Commitment Term Committee and the proponent shall be concluded within a maximum of 120 (one hundred and twenty) days, and it shall be up to the proponent, upon completion of the negotiations, to amend the terms of their initial proposal, within the deadline set by the Committee.

§ 6º In the case where the Commitment Term Committee understands that it is convenient to include in the negotiation of the commitment term proposal another case or issue without a proposal yet presented, the maximum negotiation deadline shall be increased by 90 (ninety) days.

§ 7° Without prejudice to the other deadlines provided for in this article, the minimum deadline referred to in Art. 25, §4°, of this instruction does not apply to the acts of negotiating commitment term proposals.

§ 7º included by CVM Instruction No. 624, of May 13, 2020.

Art. 84. In exceptional cases, where it is understood that public interest determines the analysis of a commitment term proposal presented outside the deadline referred to in Art. 82, such as those involving the offer of full indemnification to those harmed by the conduct object of the process and the modification of the existing factual situation at the end of said deadline, the analysis and negotiation of the proposal may be carried out by the Rapporteur Director.

§ 1º After hearing the PFE regarding the legality of the proposal, the Rapporteur shall submit the matter to the Board's appreciation with a proposal for acceptance or rejection of the proposal.

§ 2º The Rapporteur may forward the proposal to the General Superintendency so that the procedure referred to in Art. 83 is adopted.

Art. 85. In the event that damage to investors is detected and in order to instruct the analysis of the proposal, the CVM may, at its discretion, notify them to provide information regarding the extent of the damages they have suffered and the value of the reparation.

§ 1º The participation of the harmed investor does not confer upon them the status of a party in the administrative process.

§ 2º If there are harmed investors in an undetermined number and with unknown identity, the CVM may, in common agreement with the proponent and at their expense, publish notices summoning such investors for the purpose of their identification and quantification of the individual values to be paid to them as indemnification.

Art. 86. In deliberating on the proposal, the Board shall consider, among other elements, the opportunity and convenience of celebrating the commitment, the nature and severity of the offenses object of the process, the prior records of the accused or investigated or their good-faith collaboration, and the effective possibility of punishment, in the concrete case.

§ 1º Before deliberating on the proposal for the celebration of a commitment term, the Board may request the Commitment Term Committee to adopt new procedural instruction measures.

§ 2º When the proposal is presented still in the investigation phase or before it, the Board shall consider the nature and circumstances of the offense to evaluate the convenience of celebrating the commitment term in light of the benefits of eventual celebration of an administrative supervision agreement, and may determine the confidentiality of the procedure until the judgment of the administrative sanctioning process.

Section IV – Celebration of the Commitment Term

Art. 87. Once the conditions for the celebration of the commitment are approved, the respective term shall be drawn up, which shall be signed by the President of the CVM and the compromiser.

SECURITIES COMMISSION OF BRAZIL (CVM)
Seven de Setembro Street, 111/2-5th and 23-34th Floors, Center, Rio de Janeiro/RJ – ZIP: 20050-901 – Brazil - Tel.: (21) 3554-8686 Cincinato Braga Street, 340/2nd, 3rd and 4th Floors, Bela Vista, São Paulo/SP – ZIP: 01333-010 – Brazil - Tel.: (11) 2146-2000 SCN Q.02 – Bl. A – Corporate Financial Center Building, S.404/4th Floor, Brasília/DF – ZIP: 70712-900 – Brazil - Tel.: (61) 3327-2030/2031 www.cvm.gov.br

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

§ 1st The conditions of the commitment term may not be altered, except by a new deliberation of the Collegiate Body, upon request by the interested party.
§ 2nd The deadline for compliance with the commitment shall be non-extendable, except for supervening reasons not attributable to the person making the commitment.

Article 88. The execution of the commitment term has the following effects:
I – the suspension of the ongoing administrative process, for the period stipulated for the fulfillment of the commitment; or II – the non-institution of a sanctioning administrative process, in cases where the proposal is presented still in the investigation phase or before it.

Article 89. The fulfillment of the obligations assumed in the commitment term shall be monitored by the superintendence responsible for the merits of the process or by another superintendence indicated by the Collegiate Body, if applicable.
§ 1st The commitment term shall stipulate the periodicity at which the person making the commitment must provide information regarding the fulfillment of the obligations assumed by them. § 2nd The payment of amounts due to investors, as compensation for damages, if applicable, must be made directly by the accused or investigated party, without CVM intermediation.

Article 90. If the obligations assumed by the person making the commitment are not fulfilled in an integral and adequate manner, the process shall be instituted or its course resumed, as applicable, without prejudice to penalties or other measures eventually applicable.

Article 91. The commitment term shall be published in the “Electronic Journal” section of the CVM’s website on the worldwide computer network, with a specification of the deadline for fulfillment of the obligations assumed, and shall constitute an extrajudicial executive title.

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

CHAPTER V – ADMINISTRATIVE AGREEMENT IN SUPERVISION PROCESS
Section I – General Provisions

Article 92. CVM may enter into an administrative agreement in a supervision process (“Supervision Agreement”) with natural or legal persons who confess to the practice of infractions to legal or regulatory norms whose compliance falls under their supervision, with extinction of their punitive action or a reduction of 1/3 (one third) to 2/3 (two thirds) of the applicable penalty, through effective, full and permanent cooperation for the clarification of the facts, which results in utility for the process, especially:
I – the identification of other parties involved in the practice of the infraction, when applicable; and II – the obtaining of information and documents that prove the reported or under-investigation infraction.

Section II – Proposal

Article 93. Until the beginning of the judgment by the Collegiate Body, it is possible to present a proposal for a Supervision Agreement within the scope of CVM.
§ 1st The Supervision Agreement proposal must contain information about other agreement proposals regarding the same practice presented to other authorities, provided there is no prohibition for such. § 2nd The Supervision Agreement proposal shall not obstruct the investigation and instruction activities nor the processing of the sanctioning administrative process that may have been previously instituted to investigate the conduct narrated in the proposal. § 3rd If more than one Supervision Agreement proposal related to the same infraction is presented, these will be appreciated in the order in which they were received.

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

§ 4th The Supervision Agreement proposal shall remain confidential until the agreement is executed, with CVM’s duty of confidentiality prevailing even if the proposal or the facts it deals with have been disclosed by third parties or by the proponent.

Article 94. The proposal to execute a Supervision Agreement may only be presented in writing and must observe the following procedure:
Article 94. The proposal to execute a Supervision Agreement may only be presented in writing and must observe the following procedure:

Main text with wording given by CVM Instruction No. 624, of May 13, 2020.
I – the proponent must submit the proposal to the Supervision Agreement Committee (“SAC”) in a sealed envelope clearly identified with the terms “Supervision Agreement Proposal” and “Confidential”; I – the proponent must submit the proposal to the Supervision Agreement Committee (“SAC”) by means of:
a) electronic correspondence addressed to the institutional address of the SAC, with the subject “Supervision Agreement Proposal - Confidential”; or b) in a sealed envelope clearly identified with the terms “Supervision Agreement Proposal” and “Confidential”;
Item I with wording given by CVM Instruction No. 624, of May 13, 2020.
II – the proponent must present their qualification and detail the reported infraction, including the identification of other authors of the infraction of which they have knowledge and the date or period of the reported infraction, in addition to describing, clearly, in detail, completely and precisely, the information and documents that will be presented upon the signing of the Supervision Agreement; and III – the electronic address of the proponent or their legal representative must be indicated for communications and receipt of notifications.

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

Sole paragraph. The composition and functioning of the SAC shall be regulated by a Portaria (Ordinance) of the President of CVM.

Article 95. The proponent may rectify or withdraw the Supervision Agreement proposal at any time before the signing of the respective instrument.

Section III – Analysis of the Proposal

Article 96. It is the responsibility of the SAC to negotiate and make a preliminary judgment on the admissibility of the Supervision Agreement proposal, considering the criteria present in Article 92.
§ 1st Within 30 (thirty) days of the presentation of the proposal, extendable once for an equal period, the SAC must express its opinion regarding its admissibility, setting a deadline for the signing of the Supervision Agreement or for the improvement of the proposal. § 2nd If requested by the proponent, the SAC must issue, within the period referred to in § 1st, a term with information regarding the prior knowledge or not of the reported infraction by CVM when the Supervision Agreement was proposed. § 3rd The SAC may be assisted by the PFE (Legal Advisory Office) and request information from any other organizational component of CVM in the negotiation of the Supervision Agreement proposal or in the preliminary judgment of admissibility, provided that the confidentiality of the information is preserved. § 4th Within the period referred to in § 1st of this article, the SAC must make the communication provided for in Article 31, § 2nd, of Law No. 13.506, of 2017. § 5th The negotiation regarding the Supervision Agreement proposal must be concluded within the period determined by the SAC, under penalty of rejection of the proposal.

Article 97. The SAC will prepare a conduct history that must contain, at minimum:
I – a detailed exposition of the facts related to the reported infraction;

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

II – the identification of other parties involved in the practice of the infraction and the detailing of the participation of each, when applicable; III – other provisions that, given the circumstances of the concrete case, are deemed necessary; and IV – a list with all information and documents, provided or to be provided by the signatory of the Supervision Agreement, that prove the practice of the reported infraction.

Article 98. The SAC, in a restricted meeting, will issue a final decision on the acceptance or non-acceptance of a Supervision Agreement proposal presented to CVM, considering, in addition to the elements provided in Article 92:
I – the opportunity and convenience in the execution of the agreement; II – the nature and gravity of the reported infractions; III – the cessation of involvement in the reported or under-investigation infraction from the date of proposal; IV – the quantity and quality of the information provided that proves the infraction and identifies other parties involved; and V – the absence of sufficient evidence to ensure the conviction of the proponent. Sole paragraph. The decision on the acceptance of a Supervision Agreement proposal may not exceed 180 (one hundred and eighty) days, counted from the date of receipt of the proposal by the SAC.

Article 99. A rejected Supervision Agreement proposal, from which no disclosure will be made, does not constitute a confession regarding the matter of fact nor recognition of the illegality of the analyzed conduct.

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

§ 1st If the agreement is not reached, due to the withdrawal of the accused or non-acceptance by the SAC, all documents will be discarded or returned to the proponent, with no copy remaining in CVM’s possession. § 2nd The information presented by the proponent, which is no longer prior knowledge of CVM, during the negotiation of the subsequently frustrated Supervision Agreement, may not be used by those who had access to it. § 3rd The provision of § 2nd does not prevent the opening of an investigation procedure within CVM of facts related to the Supervision Agreement proposal, when the investigation results from indications or evidence that are brought to the knowledge of the Autarchy by any other means.

Section IV – The Supervision Agreement

Article 100. If approved, the agreement must be signed by the interested parties and by the members of the SAC, within 10 (ten) days, under penalty of rejection of the proposal, with confidential treatment reserved for the records.
Sole paragraph. The conditions of the Supervision Agreement may not be altered, except by a new deliberation of the SAC, upon request by the interested party or to correct material errors.

Article 101. The agreement must stipulate the necessary conditions to ensure the effectiveness of the collaboration and the useful result of the process and will include, at minimum, the following clauses and conditions:
I – complete qualification of the signatories and their legal representatives, including name, corporate name or trade name, identity document, CPF or CNPJ, complete address, phone, and electronic address; II – qualification of the legal representative with powers to receive notifications during the course of the administrative process;

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

III – indication of the electronic address where notifications can be effected; IV – exposition of the facts related to the reported infraction, with the identification of its authors and duration of the reported or under-investigation infraction; V – express confession of the signatory of the Supervision Agreement’s participation in the illicit act; VI – declaration by the signatory of the Supervision Agreement that they have ceased their involvement in the reported or under-investigation infraction; VII – declaration by the signatory of the Supervision Agreement that the information and documents contained in the conduct history are true; VIII – obligations of the signatory of the Supervision Agreement, including:
a) present to CVM and any other signatory authorities of the Supervision Agreement all and any information, documents or other materials they hold that are capable of proving the reported or under-investigation infraction; b) present to CVM and any other signatory authorities of the Supervision Agreement all and any new information, documents or other relevant materials of which they become aware during the investigations; c) present all and any information, documents or other materials related to the reported practice, whenever requested by CVM and any other signatory authorities of the Supervision Agreement during the investigations; d) cooperate fully and permanently with the investigations and the administrative process related to the reported infraction to be conducted by CVM and any other signatory authorities of the Supervision Agreement;

e) appear, when requested, at their own expense, at all procedural acts until the final decision of CVM on the reported infraction; f) notify CVM and any other signatory authorities of the Supervision Agreement of any and all changes in the data contained in the Supervision Agreement instrument; and g) behave with honesty, loyalty and good faith during the fulfillment of these obligations. IX – provision that the non-fulfillment by the signatory of the obligations provided in the Supervision Agreement results in the loss of the benefit; X – declaration that the signatory of the Supervision Agreement was the first to qualify with respect to the reported or under-investigated infraction, as applicable; XI – declaration that CVM did not have sufficient evidence to ensure the conviction of the natural and legal persons involved in the reported infraction at the time of the proposal of the Supervision Agreement; XII – declaration regarding the prior knowledge, or not, by CVM about the reported infraction, at the time of the proposal of the Supervision Agreement; and XIII – other obligations that, given the circumstances of the concrete case, are deemed necessary.

§ 1st For the purposes of this Chapter, it is considered that CVM has knowledge of the reported infraction on the date:
I – of the adoption of the measure provided for in Article 5 of this Instruction; II – of the proposal for an administrative inquiry provided for in Article 8 of this Instruction; III – of the conclusion of a supervision report or similar that indicates the occurrence of the infraction, after the performance of an on-site inspection; or

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

IV – of the decision that suspends or prohibits activities, in accordance with Article 9, § 1st, of Law No. 6.385, of 1976.

§ 2nd The deadline for fulfillment of the Supervision Agreement shall be non-extendable, except for supervening reasons not attributable to the person making the commitment, and as such recognized by the SAC.

§ 3rd The execution of the Supervision Agreement by CVM suspends the statute of limitations within the administrative scope with respect to its signatory.

§ 4th The administrative agreement in supervision process executed by CVM, concerning the practice of infractions to legal or regulatory norms whose compliance falls under their supervision, does not affect the action or legal prerogatives of the Public Ministry, with which CVM will act in coordination, or of other public institutions or self-regulatory entities within the scope of their respective competencies, nor the legal duty to communicate indications of crimes with public penal action.

§ 5th The effects of the Supervision Agreement may be extended to companies of the same group, de facto or de jure, and to their executives, administrators, employees, former executives, former administrators and former employees and involved parties in the infraction, provided that they sign the respective instrument together with the proposing legal entity.

§ 6th The adherence to the agreement signed by the proponent, even if formalized in a separate document and at a subsequent moment, when admitted by the SAC, according to criteria of convenience and opportunity, will have the same effect as joint signing.

§ 7th If the legal entity is not the proponent of a Supervision Agreement, this will not prevent its executives, administrators, employees or former executives, former administrators and former employees from proposing it, in which case, if the agreement is signed, the benefits will not extend to it.

§ 8th The signing of the Supervision Agreement does not exempt the signatory from the obligation to fully repair the damage possibly caused by their conduct.

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Article 102. The Supervision Agreement will be published, clearly and sufficiently to understand its clauses, in the “Electronic Journal” section of CVM’s website on the worldwide computer network, within 5 (five) days, counted from its signing.
Sole paragraph. The publication referred to in the main text will not contain information about the identity of the signatories of the Supervision Agreement.

Section V – Maintenance of Confidentiality

Article 103. The content of the executed Supervision Agreement, the conduct history, the identity of the signatories, the related documents and their specific information must be kept confidential from the general public until the judgment of the process by CVM.
§ 1st CVM will grant confidential treatment to the signatory of the Supervision Agreement’s commercially sensitive documents and information, observing the requirements of this Instruction and the right of defense of the other represented parties in the administrative process. § 2nd CVM must notify the accused in the sanctioning administrative process related to the reported infraction that:
I – access to the Supervision Agreement and its annexes, as well as to any documents presented by the signatory or to which CVM attributes confidential treatment, must be granted to the represented parties strictly for the purpose of exercising the right to adversarial proceedings and full defense; and II – the total or partial disclosure to other natural persons, legal entities or entities of other jurisdictions of the Supervision Agreement and its annexes, as well as of any documents presented by the signatory of the Supervision Agreement or that receive confidential treatment by CVM, is prohibited, even if the agreement or the facts it deals with have been disclosed by third parties or by the signatory, with disobedience of this duty subjecting the offenders to administrative, civil and penal liability.

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

Section VI – Fulfillment of the Supervision Agreement

Article 104. The fulfillment of the obligations assumed in the Supervision Agreement will be monitored by SPS (Superintendence of Supervision of Securities Market), in cases of administrative inquiries or after the institution of a sanctioning administrative process, or by the superintendence responsible for the merits of the process, in cases of accusation term, in coordination with the SAC.

Article 105. The Rapporteur of the sanctioning administrative process, prior to including the process in the judgment agenda, will request a detailed report from the SAC regarding the fulfillment of the obligations by the signatory.
Sole paragraph. The Rapporteur is entitled to request the signatory’s opinion regarding the SAC’s detailed report.

Article 106. In the judgment session of the sanctioning administrative process, the fulfillment of the obligations assumed in the Supervision Agreement must be ratified by the Collegiate Body, which will evaluate cumulatively:
I – the compliance with the conditions stipulated in the agreement; II – the effectiveness of the cooperation provided; and III – the good faith of the signatory regarding the fulfillment of the agreement. Sole paragraph. In the evaluation referred to in the main text, the individual collaboration of each of the signatories must be considered.

Article 107. If the Supervision Agreement is ratified by CVM, it will be decremented in favor of the signatories who first qualify:

SECURITIES AND EXCHANGE COMMISSION OF BRAZIL (CVM) Rua Sete de Setembro, 111/2-5th and 23-34th Floors, Center, Rio de Janeiro/RJ – ZIP: 20050-901 – Brazil - Tel.: (21) 3554-8686 Rua Cincinato Braga, 340/2nd, 3rd and 4th Floors, Bela Vista, São Paulo/SP – ZIP: 01333-010 – Brazil - Tel.: (11) 2146-2000 SCN Q.02 – Bl. A – Corporate Financial Center Building, S.404/4th Floor, Brasília/DF – ZIP: 70712-900 – Brazil - Tel.: (61) 3327-2030/2031 www.cvm.gov.br

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

I – the extinction of the punitive action of the public administration, in the event that the proposal for the Supervision Agreement has been presented without the CVM having prior knowledge of the reported infraction; or II – the reduction of 1/3 (one third) to 2/3 (two thirds) of the penalties applicable in the administrative sphere, in the event that the CVM has prior knowledge of the reported infraction.

§ 1st The natural or legal person that is not the first to qualify with respect to the reported infraction or under investigation may benefit exclusively from the reduction of 1/3 (one third) of the penalty applicable to it.

§ 2nd In the event of item II of the caput, the Collegiate Board shall observe the following criteria for fixing the percentage of reduction of the penalties applicable in the administrative sanctioning process instituted to investigate the infraction to which the agreement refers:
I – the importance of the information, documents and evidence presented by the signatory; II – the moment when the proposal was presented; and III – the individual collaboration of each of the signatories.

Art. 108. Non-compliance with the Supervision Agreement implies the non-obtaining of the benefits provided for in art. 107 and may be declared:
I – by the CAS, based on the information collected in accordance with art. 104, with appeal to the Collegiate Board; and II – by the Collegiate Board, in accordance with art. 106.

CHAPTER VI – FINAL PROVISIONS

Art. 109. The provisions of Chapter III, Section VII of this Instruction apply, insofar as applicable, to the infractions referred to in Law No. 9.613, of March 3, 1998, and its regulation within the scope

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

of this Autarchy.

Art. 110. An act of the General Superintendent and the Chief Prosecutor may provide for other cases besides that described in art. 7, §3rd, in which the preparation of a legal opinion may be dispensed with.

Art. 111. Unless otherwise provided by law, the procedures provided for in this Instruction may be carried out electronically, in the manner to be regulated by the CVM.

Art. 112. This Instruction shall enter into force on September 1, 2019, applying immediately to ongoing processes, safeguarding the validity of acts practiced before its entry into force.

Sole Paragraph. The maximum value of the penalty referred to in art. 61, I, and the maximum value of the base pecuniary penalty, referred to in Annex 63, as well as the procedures referred to in arts. 62, 63, 65, 66 and 67 of this Instruction, are not applicable to infractions practiced before the entry into force of Law No. 13.506, of November 13, 2017, which remain subject to the pecuniary penalty limit then in force.

Sole Paragraph included by CVM Instruction No. 613, of August 30, 2019.

Art. 113. CVM Resolutions No. 390, of May 8, 2001, No. 538, of March 5, 2008, No. 542, of July 9, 2008, No. 552, of November 4, 2008 and No. 775, of July 10, 2017, as well as CVM Instruction No. 491, of February 22, 2011, are hereby revoked.

Original signed by
MARCELO BARBOSA
President

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

ANNEX 63

ADMINISTRATIVE INFRACTION GROUP
MAXIMUM VALUE
OF BASE PECUNIARY PENALTY

GROUP I
I – related to the preparation and maintenance of social books; II – specifically provided for in Annex 73 of this Instruction, except for the conduct described in this Annex; III – non-observance of the deadline for convening a general meeting of investment fund unitholders; IV – non-disclosure of periodic and occasional information, except non-disclosure or disclosure in non-compliance with the form provided for in the regulation of a material act or fact; and V – violation of norms that provide for the activities of autonomous investment agent, securities analyst and securities consultant.

R$ 300,000.00
(three hundred thousand reais)

GROUP
II
I – non-disclosure or disclosure in non-compliance with the form provided for in the regulation of a material act or fact; II – non-preparation or preparation of periodic and occasional information in non-compliance with the regulation and applicable legislation, except for the preparation of financial statements; III – violations that constitute serious infractions to the norms that dispose of the activities of autonomous investment agent, securities analyst and securities consultant;

R$ 600,000.00
(six hundred thousand reais)

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

IV – violations of the norms that dispose of the activities of fiduciary agent; and V – irregular exercise of independent auditor activity.

GROUP
III
I – related to the fixing of the issuance price in the context of an increase in the share capital of an open company through subscription of shares; II – related to the preparation of financial statements of open companies, foreign companies, incentivized companies and investment funds, including the non-compliance with a determination of republication made by the CVM; III – related to the destination and retention of profits in open companies, as well as to the payment of dividends; IV – violations that constitute serious infractions to the norms that dispose of the activity of fiduciary agent; V – non-compliance with the fiduciary duties of fiscal councilors; VI – irregular exercise of activity of autonomous investment agent, securities analyst and securities consultant, registrar and custodian; VII – obstruction of CVM supervision; VIII – violations of the norm that disposes of the activity of securities portfolio administration;

R$ 3,000,000.00
(three million reais)

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

IX – violations of the norm that disposes of the activities of securities registration, securities custody, centralized deposit of securities and intermediation of operations in regulated markets of securities; and X – violations of the norms that dispose of the activities of independent auditor.

GROUP
IV
I – violations that constitute serious infractions to the norm that disposes of the activity of securities portfolio administration; II – violations that constitute a serious infraction to the norm that disposes of the activities of securities registration, securities custody, centralized deposit of securities and intermediation of operations in regulated markets of securities; III – violations that constitute serious infractions to the norms that dispose of the activity of independent auditor; IV – irregular exercise of activity of fiduciary agent, securities registration, securities custody and centralized deposit of securities; V – related to the exercise of the shareholder's voting right in a situation of conflict of interest; VI – related to the exercise of the administrator's voting right in a situation of conflict of interest; VII – violations of the norm that disposes of public offers

R$ 10,000,000.00
(ten million reais)

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

of distribution of securities, including those distributed with restricted efforts; and VIII – related to public offers for the acquisition of shares.

GROUP
V
I – non-compliance with the fiduciary duties of administrators of open companies or investment funds, except for the specific conduct described in another Group in this Annex; II – violations that constitute serious infractions to the norm that disposes of public offers for the distribution of securities, including those distributed with restricted efforts; and III – violations that constitute a serious infraction related to public offers for the acquisition of shares, including those distributed with restricted efforts; IV – related to the abuse of control power; V – related to the abuse of voting rights; VI – related to the creation of artificial conditions of demand, supply or price of securities and use of unfair practices in the securities market, price manipulation or the realization of fraudulent operations; VII – related to the use of material information not yet disclosed to the market; VIII – irregular exercise of activity of securities portfolio administration;

R$ 20,000,000.00
(twenty million reais)

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

IX – irregular exercise of securities intermediation.

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

ANNEX 64

Art. 1st The following are considered serious infractions, warranting the application of the penalties provided for in items III to VIII of art. 11 of Law No. 6.385, of 1976:
I – non-compliance with arts. 115; 116; 117; 153; 154, caput and §§ 1st and 2nd; 155, caput and §§ 1st, 2nd and 4th; 156, caput and § 1st; 165, caput and §§ 1st and 2nd; 201; 202, caput and §§ 5th and 6th; 205, caput and § 3rd; 245; 254-A, caput; and art. 273 of Law No. 6.404, of 1976; I – non-compliance with arts. 115; 116; 117; 153; 154, caput and §§ 1st and 2nd; 155, caput and §§ 1st, 2nd and 4th; 156, caput and § 1st; 165, caput and §§ 1st and 2nd; art. 170, §§ 1st and 7th, 201; 202, caput and §§ 5th and 6th; 205, caput and § 3rd; 245; 254-A, caput; and art. 273 of Law No. 6.404, of 1976;

Item I with wording given by CVM Resolution No. 2, of August 6, 2020.
II – non-compliance with a determination of the CVM made in accordance with art. 9, item IV, of Law No.
6.385, of 1976;
III – the infractions defined as serious in other CVM norms; and IV – obstruction of CVM supervision.

Sole Paragraph. Obstruction of supervision, for the purposes of this Instruction, is understood as the cases in which any of the persons referred to in art. 9, item I, letters "a" to "g", of Law No. 6.385, of 1976, unjustifiably fails to:
I – comply, within the established deadline, with the summons to provide information or clarifications that have been formulated by the CVM; or II – make available to the CVM the books, accounting records and documents necessary to instruct its supervisory action.

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

ANNEX 73

Art. 1st The following are considered minor complexity infractions:
I – the securities portfolio administrator fails to observe the deadlines for presentation of periodic information provided for in the norm that disposes of the administration of securities portfolios; II – the administrator of a company benefiting from resources originating from tax incentives and, when applicable, the liquidator, the judicial administrator, the judicial manager, the intervener or similar
figure, except for the case of communication regarding a material act or fact, fails to, in the manner
established in a specific norm:
a) observe the deadlines for presentation of periodic and occasional information provided for in the norm that disposes of the registration of companies benefiting from resources originating from tax incentives; b) prepare periodic and occasional information provided for in the norm that disposes of the registration of companies benefiting from resources originating from tax incentives; c) observe the deadlines for holding the ordinary general meeting; III – the administrator of a securities issuer, the foreign issuer and its legal representative and, when applicable, the liquidator, the judicial administrator, the judicial manager, the intervener or similar figure:
a) except for the cases of communication regarding a material act or fact, fails to, in the manner established in a specific norm:
i. observe the deadlines for presentation of periodic and occasional information;
ii. observe the deadlines for holding the ordinary general meeting or, in the case of a foreign issuer,
an event analogous to which it is obliged to perform;

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

iii. prepare periodic and occasional information;
b) hire an independent auditor in disregard of the norms that regulate the rotation of independent auditors; IV – the fiduciary agent fails to prepare an annual report and to observe deadlines for its presentation, in the manner established in a norm that disposes of the exercise of its functions; V – the independent auditor that:
a) fails to observe the deadlines, provided for in the norm that disposes of the registration and the exercise of the independent auditing activity within the scope of the securities market:
i. present periodic and occasional information; and
ii. communicate relevant irregularities to the CVM;
b) fails to prepare and send to the administration and the Fiscal Council, a circumstantial report containing its observations regarding the internal controls and the accounting procedures of the audited entity, describing, furthermore, any eventual deficiencies or ineffectiveness identified during the course of the work; c) disregard the rotation rules; d) not submit, within the regulatory deadline, to the review of its quality control, according to the guidelines issued by the Federal Council of Accounting - CFC, which must be carried out by another independent auditor, also registered with the CVM, whose choice must be communicated previously to this Autarchy; e) fail to comply with the continuing education policy, instituted according to the guidelines approved by the CFC, with a view to guaranteeing the quality and full compliance with the norms that govern the exercise of the activity of auditing financial statements;

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

f) in the exercise of its activities within the scope of the securities market, fails to:
i. verify:

if the financial statements and the audit report were disclosed in the media in
which their publication is mandatory and if these correspond to the audited financial statements and to the report originally issued;
if the accounting and financial information and analyses presented in the report of the
administration of the entity are in consonance with the audited financial statements; and
if the destinations of the entity's results are in accordance with the provisions of the
company law, with its bylaws and with the norms issued by the CVM;
ii. keep in good custody for a minimum period of 5 (five) years, or for a longer period by
express determination of the CVM, all documentation, correspondence, working papers, reports and opinions related to the exercise of its functions;
iii. provide access to CVM supervision and provide or allow the reproduction of documents that
have served as the basis for the issuance of the review report of interim information or audit report;
iv. make possible, in the case of substitution by another auditor, safeguarding the aspects of confidentiality and
with prior agreement of the audited entity, access by the new auditor hired to the documents and information that served as the basis for the issuance of the review reports of interim information or audit reports of previous fiscal years;
v. guarantee that all partners, directors, managers, supervisors or any other
members, with a management function, in the team destined to the exercise of the auditing activity in entities regulated by the CVM, have been approved in a Specific Technical Qualification Examination for the CVM; and

CVM INSTRUCTION NO. 607, OF JUNE 17, 2019

vi. communicate the main audit matters in the audit reports of financial statements of all entities regulated or supervised by the CVM, in accordance with the professional auditing norms approved by the CFC;
VI – the credit risk rating agency that fails to:
a) make available, on its website, the reference form; code of conduct; the description of the rules, procedures and mechanisms of internal controls, elaborated for the compliance of the norm that disposes of the activity of credit risk rating within the scope of the securities market; the updated methodologies; the cross-reference table between the credit risk ratings on the national scale and on the global scale; the credit risk rating reports that it has elaborated and their updates; and the preliminary opinions of the agency on the credit risk ratings that are not used by the issuer at the time of the disclosure of the operation, even if the agency has not been hired definitively; b) observe the deadlines for presentation of periodic and occasional information; c) disclose, in the credit risk rating reports, the mandatory information required by the norm that disposes of the activity of credit risk rating within the scope of the securities market; d) differentiate, from the use of symbols, between ratings issued for structured financial products and those intended for other financial assets; VII – the company issuing investment certificates for the production, distribution, exhibition and technical infrastructure of Brazilian audiovisual cinematic works fails to observe the deadlines for presentation of the following reports provided for in the norm that disposes of the issuance and distribution of investment certificates for the production, distribution, exhibition and technical infrastructure of Brazilian audiovisual cinematic works:
a) regarding the subscription of quotas; b) of project evolution; and

SECURITIES AND EXCHANGE COMMISSION OF BRAZIL
Rua Sete de Setembro, 111/2-5th and 23-34th Floors, Center, Rio de Janeiro/RJ – ZIP: 20050-901 – Brazil - Tel.: (21) 3554-8686 Rua Cincinato Braga, 340/2nd, 3rd and 4th Floors, Bela Vista, São Paulo/SP – ZIP: 01333-010 – Brazil - Tel.: (11) 2146-2000 SCN Q.02 – Bl. A – Ed. Corporate Financial Center, S.404/4th Floor, Brasília/DF – ZIP: 70712-900 – Brazil -Tel.: (61) 3327-2030/2031 www.cvm.gov.br CVM INSTRUCTION NO. 607, OF JUNE 17, 2019 c) offerings of closed-end investment fund shares, when intended exclusively for shareholders of the fund, with the cancellation, if any, of the balance of unplaced shares; XI – the institution administering index funds and, where applicable, the intervenor, judicial administrator or liquidator, in accordance with the regulation governing the constitution, administration and operation of index funds, with shares negotiable on a stock exchange or organized over-the-counter market, failing to:
a) observe the deadlines for presenting periodic and occasional information, including those related to the spin-off, merger, incorporation, transformation and liquidation of the fund; b) forward to the CVM, on the date of the first full payment of shares, the registration number of the fund in the National Registry of Legal Entities – CNPJ; c) provide, in the bylaws, for the fixing and conditions of payment of management fees, and, if applicable, entry and exit fees; d) observe the rules for full payment and redemption of shares of the index fund; e) observe the deadline for convening a general meeting of shareholders; f) disclose, daily, to the stock exchange or entity of the organized over-the-counter market in which the fund's shares are admitted to trading, the net asset value per share, the composition of the fund's portfolio and the value of its net assets; and g) observe the deadline for promoting the division of the fund's assets among shareholders, in the event of liquidation of the fund by resolution of the general meeting; XII – the institution administering and, where applicable, the intervenor, judicial administrator or liquidator, of investment funds in credit rights – FIDC, investment funds in non-standardized credit rights – FIDC-NP, investment funds in shares of investment funds in credit rights – FICFIDC and investment funds in credit rights within the scope of the Program for Incentive to the Implementation of Projects of Social Interest – FIDC-PIPS, in accordance with the regulations governing the constitution and operation of these funds, failing to:
a) observe the deadlines for presenting periodic and occasional information, including those related to the spin-off, merger, incorporation, transformation and liquidation of the fund; b) observe the deadline to inform the CVM of the date of the first full payment of shares and the closure of each distribution of shares of closed-end funds; c) observe the deadline for convening a general meeting of shareholders; d) observe the deadline for disclosing to shareholders the decisions of the general meeting; and e) provide, in the bylaws, for the fixing and conditions of payment of management fees, and, if applicable, entry and exit fees; XIII – the institution administering real estate investment funds, and, where applicable, the intervenor, judicial administrator or liquidator, in accordance with the regulation governing the constitution, operation and administration of these funds, failing to:
a) observe the deadlines for presenting periodic and occasional information, including those related to the spin-off, merger, incorporation, transformation and liquidation of the fund; b) observe the deadline for convening a general meeting of shareholders; and c) provide, in the bylaws, for the fixing and conditions of payment of management fees, and, if applicable, entry and exit fees; XIV – the institution administering investment funds in participations, and, where applicable, the intervenor, judicial administrator or liquidator, in accordance with the regulation governing the constitution, operation and administration of these funds, failing to:
a) observe the deadlines for presenting periodic and occasional information, including those related to the spin-off, merger, incorporation, transformation and liquidation of the fund;

Lineage: Superseded

Timeline

What changed in the obligations