Explanatory Note to CVM Instruction 87

EXPLANATORY NOTE TO CVM INSTRUCTION NO. 87, OF NOVEMBER 3, 1988.
Ref.: CVM Instruction No. 87, of November 3, 1988, which provides for Savings and Investment Plans (PAIT).
The increase in the number of investors holding long-term applications in the securities market is one of the main objectives of the Securities and Exchange Commission (CVM), finding support in government policy aimed at the expansion of this market. From the promulgation of DECREE-LAW NO. 2,292, of November 21, 1986, which instituted the Savings and Investment Plans (PAIT), the CVM has been making efforts to increase the attractiveness of this savings instrument, and thus make possible the emergence of a large-scale institutional investor. In this sense, the CVM actively participated, together with other competent authorities, especially the Central Bank of Brazil and the Federal Revenue Secretariat, in studies to implement the necessary and useful measures for the viability of these Plans. With this intent, the CVM issues INSTRUCTION NO. 87, which, by establishing the forms of transfer of assets comprising PAIT Portfolios and defining their respective accounting, contributes to making the instrument more agile and competitive. It is worth noting, furthermore, that by directing a percentage of 15% of applications in securities to investment in stocks and convertible debentures, the Instruction in question aims to expand the shareholder base of open companies. Original signed by ARNOLD WALD President