Joint Decision BACEN/CVM 10/02

1
JOINT DECISION 10
BANK OF BRAZIL SECURITIES AND EXCHANGE COMMISSION

Provides for measures to be adopted by the Securities and Exchange Commission and the Bank of Brazil, due to the enactment of Law 10.303 of 2001 and Law 10.411 of 2002.

The Collegiate Board of the Bank of Brazil and the Collegiate Board of the Securities and Exchange Commission,

having regard to the provisions of Laws 4.595 of December 31, 1964, and 6.385 of December 7, 1976, as amended by Law 10.303 of October 31, 2001, and considering:

I - the competence attributed to the Securities and Exchange Commission, by virtue of the aforementioned Law 10.303 of 2001 and Law 10.411 of February 26, 2002, regarding the issuance of regulations, the granting of authorizations and registrations, and the supervision of derivative contracts, regardless of the underlying assets, as well as commodity and futures exchanges, clearing and settlement entities for securities transactions, and any collective investment titles or contracts publicly offered, including quotas of financial investment funds, funds applying in quotas of investment funds, and investment funds abroad;

II - that, until regulations are issued by the Securities and Exchange Commission based on the competence referred to in the preceding item, the provisions issued by the National Monetary Council and the Bank of Brazil remain in force;

III - the existence of a provision in the aforementioned Law 10.303 of 2001 regarding activities that must be developed jointly by the Bank of Brazil and the Securities and Exchange Commission,

HAVE DECIDED:

Art. 1. It is established that commodity and futures exchanges, clearing and settlement entities for securities transactions, as well as institutions administering financial investment funds, funds applying in quotas of investment funds, and investment funds abroad, must continue to use the information system offered by the Bank of Brazil, until a dedicated information system is made available by the Securities and Exchange Commission.

Sole Paragraph. The provisions of the caput apply to information sent to the Bank of Brazil by any other means.

Art. 2. A working group is created, composed of members from the Bank of Brazil and the Securities and Exchange Commission, with the objective of, within thirty days, drafting a draft agreement to be signed between the two Autarchies, establishing procedures and deadlines regarding the following measures and operational procedures to be adopted concerning matters related to Law 6.385 of 1976, as amended by Law 10.303 of 2001:

I - exchange of data and information to be maintained by the two autarchies, within the scope of the financial and capital markets, including regarding operations carried out in commodity and futures exchanges and in clearing and settlement entities for securities transactions;

II - exercise of supervision of the activities of the funds referred to in Art. 1.

III - prior statement by the Bank of Brazil regarding regulations to be issued by the Securities and Exchange Commission, whenever related to prudential rules applicable to derivative markets, commodity and futures exchanges, clearing and settlement entities for securities transactions, and investment funds referred to in Art. 1, which have repercussions on the conduct of monetary, exchange, and credit policies and on the operation of financial institutions and other entities authorized by it to operate;

IV - prior statement by the Securities and Exchange Commission regarding regulations to be issued by the Bank of Brazil that have repercussions on the securities market and on the operation of institutions in the securities distribution system.

V - duration of the aforementioned agreement.

Art. 3. This joint decision enters into force on the date of its publication.

Brasília, May 2, 2002

Arminio Fraga Neto
President
BANK OF BRAZIL

Norma Jonssen Parente
Acting President, SECURITIES AND EXCHANGE COMMISSION

SEE ALSO THE CVM BACEN AGREEMENT - SIGNED ON 5/07/2002