Resolution CMN No. 2183 - Authorizes the Establishment and Operation of Financial Investment Funds and Application Funds in Investment Fund Quotas

RESOLUTION NO. 002183

Authorizes the establishment and operation of financial investment funds and application funds in investment fund quotas, and provides for the investment funds specified herein.

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the MONETARY COUNCIL, in a session held on July 20, 1995, considering the provisions of Law No. 4,728 of July 14, 1965, and Articles 3 and 4, item "c", of Decree-Law No. 1,290 of December 3, 1973,

HAS RESOLVED:

Article 1. Authorize the establishment and operation, in accordance with the regulations to be issued by the Central Bank of Brazil:

I - financial investment funds, intended for the raising of resources for application in a diversified portfolio of financial assets and other operational modalities available within the scope of the financial market;

II - application funds in quotas of investment funds, which must have as their exclusive objective the application of resources in quotas of financial investment funds and other investment funds that may be specified.

Paragraph 1. The regulation referred to in this article must include, at a minimum, the following:

I - the mandatory designation of a technically qualified administrator, responsible, civilly and criminally, for the management, supervision, monitoring, and provision of information related to the fund;

II - the mandatory adoption of the criterion for evaluating the assets comprising the fund's portfolio by their market value;

III - requirements for the diversification of the fund's applications;

IV - the system for crediting returns and conditions for redeeming fund quotas.

Paragraph 2. The hiring of a legal entity for the administration of the fund's portfolio is permitted, without prejudice to the responsibility of the administering institution and the designated administrator.

Article 2. Prohibit the issuance and placement, starting from October 1, 1995, of quotas for mutual fixed-income funds, commodity investment funds, financial application funds, investment funds in quotas of financial application funds, short-term fixed-income funds, and investment funds in quotas of short-term fixed-income funds.

Article 3. By December 29, 1995, the funds referred to in Article 2 must:

I - be transformed into financial investment funds or incorporated into them, provided that the financial assets and operational modalities comprising their respective portfolios are subject to evaluation at market prices; or

II - be liquidated, with the approval of their accounts by the general assembly of condominium owners.

Paragraph 1. The redemption of quotas issued by the funds subject to transformation or incorporation under this article must be carried out in accordance with the conditions provided in their respective regulations, computing, for this purpose, the holding periods verified in them.

Paragraph 2. For the purposes of Paragraph 1, the quotas of the fund subject to transformation or incorporation must be redeemed prior to those issued in the name of the same condominium owner by the financial investment fund.

Paragraph 3. The financial assets and/or operational modalities comprising the portfolio of the fund subject to transformation or incorporation may be maintained in the financial investment fund regardless of compliance with diversification requirements until their respective maturity or December 29, 1995, whichever occurs first.

Article 4. The investment fund constituted under Resolution No. 2,108 of September 12, 1994, shall be governed, insofar as applicable, by the regulation referred to in Article 1 of this Resolution, admitting the redemption of its issued quotas with returns at any time.

Article 5. Amend item II of Resolution No. 1,429 of December 15, 1987, which shall now read as follows:

"II - The Central Bank of Brazil is authorized to issue regulations governing the custody of gold traded in the financial market."

Article 6. This Resolution enters into force on the date of its publication, producing effects from August 1, 1995.

Article 7. The following are revoked:

I - from August 1, 1995, item I of Paragraph 1 of Article 1 of Resolution No. 2,108 of September 12, 1994;

II - from December 29, 1995:

a) Resolutions Nos. 1,286 of March 20, 1987, 1,589 of March 29, 1989, 1,729 of July 10, 1990, 1,765 of October 31, 1990, 1,791 of February 26, 1991, 1,912 of March 11, 1992, and 2,069 of April 29, 1994; Circulars Nos. 1,160 of April 22, 1987, 1,411 of December 29, 1988, 1,482 and 1,483 of May 16, 1989, 1,491 of June 1, 1989, 1,721 of May 9, 1990, 1,864 of December 14, 1990, 1,904 of February 26, 1991, 1,946 of April 24, 1991, 2,008 of August 8, 1991, 2,076 of November 7, 1991, 2,124 of January 24, 1992, 2,129 of January 29, 1992, 2,176 of May 20, 1992, 2,205 of July 24, 1992, 2,209 of August 5, 1992, 2,251 and 2,252 of November 18, 1992, 2,265 of January 14, 1993, 2,304 of May 4, 1993, 2,325 and 2,326 of June 30, 1993, 2,352 of August 4, 1993, 2,357 of August 12, 1993, 2,373 of October 21, 1993, 2,391 of December 22, 1993, 2,420 of April 29, 1994, 2,432 of June 29, 1994, 2,517 of December 9, 1994, 2,519 of December 15, 1994, and 2,542 of February 1, 1995; Letter-Circulars Nos. 2,335 of November 12, 1992, 2,339 of December 8, 1992, 2,407 of September 23, 1993, 2,409 of September 29, 1993, 2,492 of September 8, 1994, and 2,536 of April 20, 1995; and Communications Nos. 2,322 of February 22, 1991, 2,529 of September 9, 1991, 2,891 of June 26, 1992, 2,968 of August 11, 1992, 2,983 of August 28, 1992, 3,130 of December 22, 1992, 3,298 of May 3, 1993, 3,471 of August 23, 1993, 3,901 of May 17, 1994, and 4,041 of July 13, 1994;

b) item III of Resolution No. 1,429 of December 15, 1987; Articles 1 and 2 of Resolution No. 1,787 of February 1, 1991; the sole paragraph of Article 1 of Circular No. 1,890 of February 1, 1991; Article 2 of Circular No. 2,039 of September 13, 1991; item "a" of item II, of Article 1 of Circular No. 2,287 of March 10, 1993; Article 3 of Circular No. 2,301 of May 4, 1993; Article 2 of Circular No. 2,485 of September 22, 1994; Article 6 of Circular No. 2,511 of December 2, 1994; and items I and II of Article 3 of Circular No. 2,528 of December 28, 1994.

Brasília, July 21, 1995

Gustavo Jorge Laboissière Loyola
President