CVM Instruction No. 619 (Repealed)

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 – 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.
619, OF FEBRUARY 6, 2020

Amends and repeals provisions of CVM Instruction No. 592, of November 17, 2017.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION OF BRAZIL - CVM makes public that the Collegiate Board, in a meeting held on January 22, 2020, in view of the provisions of Arts. 1, item VIII, 8th, item I, and 27 of Law No. 6.385, of December 7, 1976, APPROVED the following Instruction:

Art. 1 Arts. 2, 3, 4, 5, 7, 8, 9 and 10 of CVM Instruction No. 592, of November 17, 2017, shall enter into force with the following wording:

“Art. 2 Securities consulting is an activity exclusive to securities consultants registered with the CVM, in the case of consultants domiciled in Brazil, or recognized by it, in the case of consultants domiciled abroad.

Sole Paragraph. When acting in Brazil, the rules set forth in this Instruction, in addition to the specific rules issued by the CVM regarding:
I – the duty to verify the suitability of products, services and operations to the client's profile; and II – the registration of investors and the prevention of money laundering and terrorist financing – AML/CFT within the securities market.” (NR)

“Art. 3 For the purpose of obtaining and maintaining authorization or, as the case may be, recognition with the CVM, the securities consultant, an individual, must meet the following requirements:
I – REVOKED
II – be graduated from a higher education course or equivalent, in an institution officially recognized in the country or abroad;

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III – have passed a certification exam whose methodology and content have been previously approved by the CVM or by an equivalent entity in their country of domicile; IV – …… V – not be disqualified or suspended from holding a position in financial institutions and other entities authorized to operate by the CVM, the Central Bank of Brazil, the Private Insurance Superintendence – SUSEP, the National Superintendence of Complementary Pension – PREVIC or by equivalent entities in their country of domicile; VI – not have been convicted, in Brazil, or for equivalent crimes, in their country of domicile, for bankruptcy crime, malfeasance, bribery, extortion, embezzlement, money “laundering” or concealment of assets, rights and values, against the popular economy, the economic order, consumer relations, public faith or public property, the national financial system, or a criminal penalty that prohibits, even temporarily, access to public office, by a final and unappealable decision, except in the case of rehabilitation; ……”(NR)

“Art. 4 For the purpose of obtaining and maintaining authorization or, as the case may be, recognition by the CVM, the securities consultant, a legal entity, must meet the following requirements:
I – REVOKED
II – ……
III – assign responsibility for the securities consulting activity to a statutory director, who must be registered with the CVM, in the case of consultants domiciled in Brazil, as an individual securities consultant; ……”(NR)

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“Art. 5 The application for authorization or recognition, as the case may be, to exercise the activity of securities consultant must be sent to the SIN and be accompanied by the documents identified in the:
……”(NR)

“Art. 7 ……
§ 1 After the period of suspension requested has ended, the securities consultant automatically returns to being authorized or, as the case may be, recognized to exercise the activities of securities consulting and to be obliged to comply with the provisions of the regulation. ……”(NR)

“Art. 8 The SIN must suspend the authorization or recognition of the securities consultant, individual or legal entity, if the periodic obligations provided for in Art. 14 of this Instruction are not complied with, for a period exceeding 12 (twelve) months. § 1 The SIN must inform the respective securities consultant about the suspension of their authorization or recognition by means of a letter sent to the electronic address contained in their registration form, and by means of a communication on the CVM page on the worldwide computer network. ……”(NR)

“Art. 9 The SIN must cancel the authorization or recognition of the securities consultant in the following cases:
……
III – if the falsity of the documents or declarations presented to obtain the authorization or recognition is found;

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IV – if, due to a supervening fact duly proven, it becomes evident that the person authorized or recognized by the CVM no longer meets any of the requirements and conditions established in this Instruction for the granting of the authorization or recognition; or V – if the suspension of the authorization or recognition referred to in Art. 8 is not reversed within the period of 12 (twelve) months. ……”(NR)

“Art. 10. The application for cancellation of the authorization or recognition to exercise the activity of securities consulting must be requested to the SIN.
……”(NR)

Art. 2 CVM Instruction No. 592, of 2017, shall enter into force supplemented by Section IV to Chapter II with the following wording:

“Section IV – Requirements for Recognition
Art. 6-A For the purpose of obtaining and maintaining recognition by the CVM, the securities consultant not domiciled in Brazil must meet the following requirements:
I – be authorized and subject to supervision by a competent authority in their country of domicile; and II – constitute and maintain a legal representative in Brazil, with express powers to receive, on their behalf, any citations, summonses or notifications. § 1 For the purposes of item I of the caput, a competent authority is considered to be one with which the CVM has signed a mutual cooperation agreement that allows the exchange of information about their supervised entities, or that is a signatory to the

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multilateral memorandum of understanding of the International Organization of Securities Commissions – IOSCO.
§ 2 The provisions of Art. 6 apply to securities consultants not domiciled in Brazil who seek recognition by the CVM.”(NR)

Art. 3 Art. 1 of Annex 5-I of CVM Instruction No. 592, of 2017, shall enter into force with the following wording:

“Art. 1 The application for authorization or recognition to exercise the activity of securities consulting, by an individual, must be accompanied by the following documents:
……”(NR)

Art. 4 Art. 1 of Annex 5-II of CVM Instruction No. 592, of 2017, shall enter into force with the following wording:

“ Art. 1 The application for authorization or recognition to exercise the activity of securities consulting, by a legal entity, must be accompanied by the following documents:
……”(NR)

Art. 5 Item 6-a of Annex 14-I of CVM Instruction No. 592, of 2017, shall enter into force with the following wording:

“6-a. accusations resulting from administrative proceedings, as well as punishments suffered, in the last 5 (five) years, as a result of activity subject to the control and supervision of the CVM, Central Bank of Brazil, Private Insurance Superintendence – SUSEP or the National Superintendence of Complementary Pension – PREVIC, including that they are not disqualified or suspended from holding a position in financial institutions and other entities authorized to operate by the aforementioned bodies or by equivalent entities in their country of domicile”(NR)

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Art. 6 Item 12-a of Annex 14-II of CVM Instruction No. 592, of 2017, shall enter into force with the following wording:

“12-a accusations resulting from administrative proceedings, as well as punishments suffered, in the last 5 (five) years, as a result of activity subject to the control and supervision of the CVM, Central Bank of Brazil, Private Insurance Superintendence – SUSEP or the National Superintendence of Complementary Pension – PREVIC, including that they are not disqualified or suspended from holding a position in financial institutions and other entities authorized to operate by the aforementioned bodies or by equivalent entities in their country of domicile”(NR)

Art. 7 Items I of Art. 3 and I of Art. 4 of CVM Instruction No. 592, of November 17, 2017, are hereby revoked.

Art. 8 This Instruction enters into force on June 1, 2020.

Original signed by
MARCELO BARBOSA
President

Lineage: Superseded

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