Joint Decision CVM/SPC No. 02 of February 26, 1998

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JOINT DECISION CVM/SPC NO. 02, OF FEBRUARY 26, 1998 SECURITY AND EXCHANGE COMMISSION OF BRAZIL (CVM) SECRETARIAT FOR COMPLEMENTARY PENSION (SPC) Establishes conditions for the capitalization with shares of mutual investment funds in stocks - free portfolio, by closed private pension entities.

The Board of the Security and Exchange Commission of Brazil (CVM) and the Acting Secretary of the Secretariat for Complementary Pension of the Ministry of Social Security and Assistance, having regard to the provisions of Resolution No. 2467, of February 19, 1998, of the National Monetary Council,

D E C I D E:

Article 1. Establish the following conditions for the capitalization, by closed private pension entities, of quotas of mutual investment funds in stocks - free portfolio, with shares owned by them:

I - the shares must have proven liquidity on a stock exchange, defined cumulatively by the following criteria:
a) minimum of R$ 2,000,000.00 (two million reais) of trading volume per month, in the last six months; b) minimum of R$ 18,000,000.00 (eighteen million reais) of trading volume in the last six months; c) minimum of one hundred trades per month, in the last six months.

II - the price to be considered for the capitalization of quotas shall be equivalent to the average quotation of the shares on the stock exchanges, on which these shares were most traded, on the business day preceding the day of capitalization;

III - for the purposes of the provision of item II, if the shares used in the capitalization of quotas have not been traded on the last business day's session, it will be admitted to adopt as reference the respective average quotations of the immediately preceding session, with a limit of the third session preceding the day of capitalization;

IV - in the event that the fund is constituted in accordance with CVM Instruction No. 254, of September 19, 1996, the shares comprising the portfolio of the closed private pension entity in the mutual fund, cumulatively with the similar shares held directly by the entity, may not exceed the application or diversification limits established in the current regulations applicable to them.

Article 2. Failure to observe the provisions of this Joint Decision shall subject the closed private pension entities and their administrators, as well as the administrators of the mutual fund, to the sanctions provided for in the current legislation and regulations.

Article 3. This Joint Decision enters into force on the date of its publication in the Official Gazette of the Union.

Signed original by
FRANCISCO DA COSTA E SILVA
President of
SECURITY AND EXCHANGE COMMISSION OF BRAZIL (CVM)

Signed original by
MÔNICA MESSENBERG GUIMARÃES
Acting Secretary of
SECRETARIAT FOR COMPLEMENTARY PENSION (SPC)