Circular No. 2.596

CIRCULAR N. 002596 ------------------ Establishes mandatory deposit at the Central Bank on the Net Equity of the Financial Investment Fund. The Board of the Central Bank of Brazil, based on art. 66 of Law No. 9.069, of 29.06.95, on art. 1 of Resolution No. 2.183, of 21.07.95, and on art. 13, item I, of the Regulation annexed to Circular No. 2.594, of 21.07.95, D E C I D E D: Art. 1 The institutions administering Financial Investment Funds must maintain at the Central Bank a mandatory deposit, in cash, equivalent to the following rates applicable to the Net Equity of the respective fund, according to the interval for updating the quota value for the purpose of redeeming quotas with yield: a) from 30 to 59 days - 10% (ten percent); b) from 60 to 89 days - 5% (five percent); and c) from 90 days onward - zero Art. 2 The requirement of the mandatory deposit referred to in art. 1 of this Circular shall be based on the daily arithmetic average of the Net Equity, determined at the end of the day, during the calculation period. Paragraph 1 The calculation period is defined as the business days comprised in a one-week period, beginning on Monday and ending on Friday. Paragraph 2 The adjustment date is defined as the Monday of the second week following the end of the calculation period, it being understood that, if Monday is not a business day, the adjustment shall be made on the immediately following business day, remaining unavailable until the subsequent adjustment date. Art. 3 The mandatory deposit at the Central Bank: I - has its constitution and movement carried out exclusively via the Banking Reserves account; and II - shall not be entitled to any remuneration. Sole paragraph. The institution administering a fund that does not hold a Banking Reserves account must enter into an agreement under the terms provided in Circular No. 2.425, of 15.06.94. Art. 4 In the event that insufficiency in the mandatory deposit is found, the administering institution incurs the payment of financial costs, calculated on the amount of the deficiency determined. Paragraph 1 The financial costs shall be calculated considering the days, between consecutive adjustment dates, during which the deficiency persisted and due on the date of regularization or of the subsequent adjustment, whichever occurs first, based on the adjusted average rate of all financing operations registered in the Special System for Settlement and Custody (SELIC), regardless of the characteristics of the securities, plus 30% (thirty percent) per year. Paragraph 2 The financial costs relating to any past deficiencies shall be updated based on the daily rate of Interfinancial Deposits (DI) and debited on the present date, and the financial institution may opt for the valued debit, and such option must be communicated to the Regional Office of the Central Bank where it is subject to jurisdiction until the third business day following the processing of the alterations/entries that gave rise to them.
Paragraph 3 The administering institution is prohibited from reimbursing itself for the financial costs referred to in this article by passing on the corresponding burden to the quotaholders. Paragraph 4 The daily factors used for the purpose of calculating the financial cost may be obtained by consulting the PTAX860 and PTAX880 transactions of the Central Bank Information System (SISBACEN). Art. 5 This Circular enters into force on the date of its publication, producing effect from the first calculation period, which, exceptionally, shall be from 01.08.95 to 04.08.95, with adjustment on 14.08.95. Brasília, 21 July 1995 Alkimar Ribeiro Moura Cláudio Ness Mauch Director of Monetary Policy Director of Norms and Organization of the Financial System. NOTE: Reissued due to alterations made in art. 4, paragraph 1.