Resolution CMN No. 1787 Authorizing the Establishment of Financial Application Funds

RESOLUTION NO. 001787

AUTHORIZES THE ESTABLISHMENT OF FINANCIAL APPLICATION FUNDS, IN ACCORDANCE WITH THE REGULATIONS TO BE ISSUED BY THE CENTRAL BANK OF BRAZIL.

THE CENTRAL BANK OF BRAZIL, IN ACCORDANCE WITH ART. 9 OF LAW NO. 4.595, OF 12.31.64, MAKES PUBLIC THAT THE PRESIDENT OF THE NATIONAL MONETARY COUNCIL, BY ACT OF 02.01.91, BASED ON paragraph 2 OF ART. 2 OF LAW NO. 8.056, OF 06.28.90, "AD REFERENDUM" OF THAT COUNCIL, AND TAKING INTO ACCOUNT THE PROVISIONS OF LAW NO. 4.728, OF 07.14.65, AND ART. 3, ITEM I, OF LAW NO. 6.385, OF 12.07.76,

RESOLVES:

ART. 1. AUTHORIZE THE ESTABLISHMENT, AS WELL AS THE OPERATION FROM 03.01.91, OF FINANCIAL APPLICATION FUNDS, WHICH SHALL HAVE AS THEIR MAIN OBJECTIVE THE INVESTMENT OF RESOURCES IN A DIVERSIFIED PORTFOLIO OF FIXED-INCOME SECURITIES, IN ACCORDANCE WITH THE REGULATIONS TO BE ISSUED BY THE CENTRAL BANK OF BRAZIL.

ART. 2. SHORT-TERM APPLICATION FUNDS AND MUTUAL FIXED-INCOME FUNDS IN OPERATION MUST BE TRANSFORMED INTO THE FUNDS REFERRED TO IN THE PREVIOUS ARTICLE, INCORPORATED INTO THEM OR LIQUIDATED, AND MAY NOT, UNDER THE CURRENT FORM, CARRY OUT OPERATIONS FROM 03.01.91.

ART. 3. AUTHORIZE THE SECURITIES AND EXCHANGE COMMISSION (CVM) TO ISSUE THE NORMS AND ADOPT THE MEASURES IT DEEMS NECESSARY REGARDING THE ESTABLISHMENT AND OPERATION OF MUTUAL EQUITY FUNDS.

PARAGRAPH 1. THE CENTRAL BANK OF BRAZIL MUST BE PREVIOUSLY CONSULTED WHEN IT COMES TO INTRODUCING MAXIMUM LIMITS FOR THE INVESTMENT OF RESOURCES OF THE FUNDS REFERRED TO IN THIS ARTICLE IN CREDIT SECURITIES.

PARAGRAPH 2. UNTIL THE NORMS REFERRED TO IN THIS ARTICLE ARE ISSUED, THE PROVISIONS OF RESOLUTION 1,280, OF 03.20.87, WITH THE MODIFICATIONS INTRODUCED BY RESOLUTIONS NOS. 1,365, OF 07.30.87, AND 1,659, OF 10.26.89, REMAIN IN FORCE.

ART. 4. THE CENTRAL BANK OF BRAZIL MAY ISSUE THE NORMS AND ADOPT THE MEASURES IT DEEMS NECESSARY FOR THE EXECUTION OF THE PROVISIONS OF THIS RESOLUTION.

ART. 5. THIS RESOLUTION ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION.

ART. 6. ITEM III OF RESOLUTION NO. 1,280, OF 03.20.87, AND, FROM 03.01.91:

I - RESOLUTIONS NOS. 1,199, OF 10.10.86, 1,286, OF 03.20.87, 1,589, OF 03.29.89, 1,711, OF 05.15.90, 1,729, OF 07.10.90, AND 1,765, OF 10.31.90;

II - CIRCULARS NOS. 1,215, OF 08.06.87, 1,411, OF 12.29.88, 1,614, OF 03.22.90, 1,619, OF 03.23.90, 1,747, OF 06.05.90, 1,752, OF 06.07.90, 1,774, OF 07.10.90, 1,779, OF 07.18.90, 1,838, OF 11.01.90, AND 1,864, OF 12.14.90; AND

III - CIRCULAR LETTERS NOS. 1,662, OF 07.06.87, 1,706, OF 08.31.87, 1,879, OF 01.04.89, AND 2,116, OF 10.09.90.

BRASÍLIA (DF), FEBRUARY 1, 1991

IBRAHIM ERIS
PRESIDENT