Resolution CMN No. 4,993 — Standards for Investment of Technical Reserves, Provisions, and Funds

Resolution No. 4,993

RESOLUTION
CMN No. 4,993, OF MARCH 24, 2022

Provides on the norms that regulate the investment of resources from technical reserves, provisions, and funds of insurance companies, capitalization societies, open complementary pension entities, and local reinsurers, on the investment of resources required in the Country to guarantee the obligations of admitted reinsurers and on the portfolio of the Individual Programmed Retirement Funds (Fapi).

The Central Bank of Brazil, in accordance with art. 9 of Law No.
4,595, of December 31, 1964, makes public that the National Monetary Council, in a session held on March 24, 2022, taking into account the provisions of arts. 1, 7, 9, and 14 of Decree No. 10,139, of November 28, 2019, 28 of Decree-Law No. 73, of November 21, 1966, 4 of Decree-Law No. 261, of February 28, 1967, 1 of Law No. 9,477, of July 24, 1997, 9 of Complementary Law No. 109, of May 29, 2001, and 17 of Complementary Law No. 126, of January 15, 2007,

R E S O L V E D:

Art. 1. The norms are established, in accordance with the attached Regulation, that regulate the investment of resources from technical reserves, provisions, and funds, as provided in the respective laws dealing with the subject, of insurance companies, capitalization societies, open complementary pension entities, and local reinsurers, as well as the acceptance of corresponding assets as guarantors of the respective resources, in accordance with the legislation and regulation in force, and the investment of resources required in the Country to guarantee the obligations of admitted reinsurers.

Sole Paragraph. The guidelines, requirements, modalities, allocation limits by asset and modality, limits by issuer, rules for operations with derivatives and committed operations, and applicable deadlines for the segment of open complementary pension plans and life insurance with survival coverage destined for Qualified Participants of Complementary Pension during the deferral period apply to the investment portfolios of the Individual Programmed Retirement Funds (Fapi).

Art. 2. The following are revoked:

I - Resolution No. 4,444, of November 13, 2015;

II - Resolution No. 4,449, of November 20, 2015;

III - Art. 1 of Resolution No. 4,484, of May 6, 2016;

IV - Resolution No. 4,633, of February 22, 2018;

V - Resolution No. 4,670, of June 14, 2018; and

VI - Resolution No. 4,769, of December 19, 2019.

Art. 3. This Resolution enters into force on May 2, 2022.

Roberto de Oliveira
Campos Neto

President of the Central Bank of Brazil

ATTACHED REGULATION TO CMN RESOLUTION NO. 4,993, OF MARCH 24, 2022

CHAPTER I

ON RESOURCES AND ACCEPTANCE OF ASSETS
AS GUARANTORS

Art. 1. The resources from technical reserves, provisions, and funds of insurance companies, capitalization societies, open complementary pension entities, and local reinsurers, as provided in the respective laws dealing with the subject, must be invested in accordance with the guidelines established in Chapters II to VII and X of this Regulation, while the resources required in the Country to guarantee the obligations of admitted reinsurers must be invested in accordance with the provisions of
Chapter IX.

CHAPTER II

GUIDELINES AND REQUIREMENTS FOR
INVESTMENT

Section I

Guidelines for Investment of
Resources

Art. 2. In the investment of resources covered by this Regulation, insurance companies, capitalization societies, open complementary pension entities, and reinsurers must:

I - observe the principles of safety, profitability, solvency, liquidity, diversification, adequacy to the nature of their obligations, and transparency;

II - conduct their activities with good faith, loyalty, and diligence;

III - maintain high ethical standards;

IV - adopt practices aimed at ensuring compliance with their obligations, considering, among other things, the established investment policy, observing the modalities, segments, limits, and other criteria and requirements established in this Regulation; and

V - observe, whenever possible, the aspects related to the economic, environmental, social, and governance sustainability of investments.

Section II

Requirements of Assets

Art. 3. The issuance, distribution, and trading of securities must observe the norms established by the Central Bank of Brazil and the Securities and Exchange Commission (CVM).

§ 1. Securities must have financial settlement, or the provision for delivery of the respective underlying financial assets, provided they are eligible to be accepted as guarantors of the resources of technical reserves, provisions, and funds, as provided in the respective laws dealing with the subject, of insurance companies, capitalization societies, open complementary pension entities, and reinsurers.

§ 2. Shares, securities, or any obligation issued by the insurance company itself, the capitalization society, the open complementary pension entity, or the local reinsurer, as well as shares, securities, and obligations issued by related parties, shall not be considered as guarantor assets.

§ 2. Shares, securities, or any obligation issued by the insurance company itself, the capitalization society, the open complementary pension entity, or the local reinsurer, as well as shares, securities, and obligations issued by related parties or acquired through commercial or financial transactions with related parties, shall not be considered as guarantor assets. (Revised, effective from 2/5/2022, by CMN Resolution No. 5,016, of 4/28/2022.)

§ 3. For the purposes of this Regulation, related parties to the insurance company, capitalization society, open complementary pension entity, or local reinsurer are:

I - entities controlled, directly or through other controlled entities, or whose control is shared;

II - entities belonging to the same economic group, that is, controlling entities and entities controlled by them, as well as entities under common control;

III - their affiliated entities, understood as those that:

a) the investor has significant influence, holding or exercising the power to participate in the decisions of the financial or operational policies of the investee; or

b) the investor holds 20% (twenty percent) or more of the voting capital of the investee;

IV - administrators or members of statutory boards of the insurance company, capitalization society, open complementary pension entity, or local reinsurer and their respective spouses or partners and relatives up to the second degree; and

V - entities in which the persons mentioned in item IV hold a participation equal to or greater than 10% (ten percent) of the capital.

§ 4. The provisions of § 2 do not apply to shares that are part of a market index when allocated in investment fund portfolios for which the said index is a reference for the fund's investment policy, provided that the proportion of participation of each share in the composition of the said index is respected.

Art. 4. Only financial assets that are registered in registration systems, subject to custody, or subject to centralized deposit, in all cases in institutions authorized by the Central Bank of Brazil or the Securities and Exchange Commission, in their respective areas of competence, to perform the said activities, observing the provisions of § 3 of art. 11 of this Regulation, shall be considered as guarantor assets.

Art. 5. Securities must be subject to registration, with identification of the holder, of centralized deposit in an individualized account in the name of the insurer, capitalization society, open complementary pension entity, or local reinsurer, or subject to custody, in all cases in institutions authorized by the Central Bank of Brazil or the Securities and Exchange Commission, in their respective areas of competence, to perform the said activities.

§ 1. Registration systems must allow the identification of the insurer, capitalization society, open complementary pension entity, or local reinsurer with the consequent segregation of the assets of these from the assets of the custodian or clearing agent.

§ 2. Cash balances must remain deposited in financial institutions authorized to operate by the Central Bank of Brazil.

Art. 6. It is prohibited to acquire shares of investment funds whose direct or indirect activity in derivative markets generates, at any time, the possibility of loss greater than the net asset value of the investment fund or that obliges the shareholder to contribute additional resources to cover the fund's loss.

CHAPTER III

ON INVESTMENTS

Section I

Modalities for Investment of
Resources

Art. 7. Subject to the limitations and other conditions established in this Regulation, resources may only be allocated in the following modalities:

I - fixed income;

II - variable income;

III - real estate;

IV - investments subject to exchange rate variation; and

V - others.

Section II

Assets and Limits by Modality

Subsection I

Fixed Income Modality

Art. 8. In the investment of resources covered by this Regulation, the following limits and admitted assets must be observed:

I - up to 100% (one hundred percent) in the sum of the following assets:

a) Federal Public Debt Securities internal;

b) securitized credits by the National Treasury Secretariat;

c) shares of investment funds, constituted in the form of an open partnership and with the specific purpose of receiving resources from technical reserves and provisions, whose portfolios are represented exclusively by the securities referred to in items “a” and “b”, positions in derivative markets, and cash balances, which may be invested in committed operations, of which insurance companies, capitalization societies, open complementary pension entities, or local reinsurers are the only shareholders, and shares of investment funds in shares of investment funds with such characteristics, as per regulation in force (Special Investment Fund of Public Securities); and

d) shares of investment funds admitted to trading on the secondary market through a stock exchange whose portfolios of financial assets aim to reflect the variations and profitability of a fixed income index composed exclusively by the securities referred to in items “a” and “b”, except for the cash balances allowed by regulation in force (Public Securities Index Fund), as established by the Securities and Exchange Commission;

II - up to 75% (seventy-five percent) in the sum of the following assets:

a) securities or other fixed income financial assets issued by a public company whose public offering has been registered with the Securities and Exchange Commission, or has been exempted; and

b) infrastructure debentures issued in the manner provided in art. 2 of Law No. 12,431, of June 24, 2011, by a joint-stock company, public or closed, whose public offering has been registered with the Securities and Exchange Commission, or has been exempted, and that have a guarantee of federal public securities representing at least 30% (thirty percent) of the principal at the maturity date of the commitments stipulated in the issuance deed, observing the norms of the Securities and Exchange Commission;

III - up to 50% (fifty percent) in the sum of the following assets:

a) obligations or co-obligations of financial institutions authorized to operate by the Central Bank of Brazil;

b) shares of investment funds, constituted in the form of an open partnership, whose portfolio has as its main risk factor the variation of the domestic interest rate, or of a price index or both, or shares of investment funds in shares of investment funds with such characteristics (Fixed Income Funds), as established by the Securities and Exchange Commission; and

c) shares of investment funds admitted to trading on the secondary market through a stock exchange, in the manner regulated by the Securities and Exchange Commission, whose portfolios are composed of financial assets that seek to reflect the variations and profitability of fixed income reference indices (Fixed Income Index Fund); and

IV - up to 25% (twenty-five percent) in the sum of the following assets:

a) securities or other fixed income financial assets whose public offering has been registered with the Securities and Exchange Commission, or has been exempted, issued by a special purpose entity (SPE) constituted in the form of a joint-stock company, except for the hypothesis provided in item II, item “b”;

b) receivable certificates issued by securitization companies, as regulated by the Securities and Exchange Commission;

c) obligations of international financial organizations of which the Brazilian State is a part, admitted to trading in Brazil;

d) senior class shares of investment funds in credit rights (FIDC) and shares of investment funds in shares of investment funds in credit rights (FICFIDC); and

e) fixed income securities or values not related in this article, provided they have full credit insurance coverage, observing the specific regulation of the National Council of Private Insurance and the Superintendence of Private Insurance.

§ 1. Assets whose remuneration is associated with exchange rate variation are not admitted in the modality covered by this Subsection.

§ 2. The FICFIDCs mentioned in item “d” of item IV of the main text must contain a provision in their regulations that excludes the possibility of investment in subordinate class shares.

§ 3. FIDCs within the scope of the Program for Incentive to the Implementation of Projects of Social Interest (FIDC-PIPS) and Non-Standardized Credit Rights Investment Funds (FIDC-NP), as well as the respective fund shares with these assets, shall not be considered as guarantor assets mentioned in item “d” of item IV of the main text, as established by the Securities and Exchange Commission.

§ 4. The limit provided for in item IV of the main text, for investment in the asset covered by item “a”, may be expanded to 30% (thirty percent) in the case of shares of investment funds in the manner provided in art. 3 of Law No. 12,431, of 2011, or debentures issued by an SPE constituted in the form of a joint-stock company, public or closed, of real estate receivable certificates, and senior shares of issuance of an investment fund in credit rights, standardized or non-standardized, constituted in the form of a closed partnership, issued or assigned by a concessionaire, permit holder, authorized party, or lessee, to raise resources to implement investment projects in the infrastructure area, as provided in § 1-A of art. 2 of Law No. 12,431, of 2011.

Subsection II

Variable Income Modality

Art. 9. In the investment of resources covered by this Regulation, the following limits and admitted assets must be observed:

I - up to 100% (one hundred percent) in the sum of the following assets:

a) shares issued by public companies, corresponding subscription bonuses, subscription receipts, and deposit certificates, admitted to trading in a special segment, established by a stock exchange in Brazil, which ensures, through a contractual link between the exchange and the issuer, differentiated corporate governance practices, which contemplate, at least, the obligation of at least 25% (twenty-five percent) of shares permanently in circulation (free float) and express provision in the company's bylaws that its social capital be divided exclusively into ordinary shares; and

b) shares of investment funds, constituted in the form of an open partnership, whose portfolio is composed exclusively of the shares admitted in item “a”, corresponding bonuses or subscription receipts and deposit certificates of such shares, and shares of investment funds in shares of investment funds with such characteristics, as established by the Securities and Exchange Commission;

II - up to 75% (seventy-five percent) in the sum of the following assets:

a) shares issued by public companies that allow the existence of ON and PN shares (with additional rights), corresponding subscription bonuses, subscription receipts, and deposit certificates, admitted to trading in a special segment, established by a stock exchange in Brazil, which contemplate express provision in the company's bylaws that the board of directors must be composed of at least 5 (five) members, of which at least 20% (twenty percent) must be independent with a unified term of up to 2 (two) years, according to the criterion established by the stock exchange; and

b) shares of investment funds, constituted in the form of an open partnership, whose portfolio is composed exclusively of the shares admitted in item “a”, corresponding bonuses or subscription receipts and deposit certificates of such shares, and shares of investment funds in shares of investment funds with such characteristics, as established by the Securities and Exchange Commission;

III - up to 50% (fifty percent) in the sum of the following assets:

a) shares issued by public companies whose composition of the Board of Directors has a minimum of 3 (three) members (according to legislation), with a unified term of up to 2 (two) years, admitted to trading in a special segment, established by a stock exchange in Brazil, and corresponding subscription bonuses, subscription receipts, and deposit certificates;

b) shares of investment funds, constituted in the form of an open partnership, whose portfolio is composed exclusively of the shares admitted in item “a”, corresponding bonuses or subscription receipts and deposit certificates of such shares, and shares of investment funds in shares of investment funds with such characteristics, as established by the Securities and Exchange Commission;

c) shares of investment funds admitted to trading on the secondary market through a stock exchange whose portfolios are composed of financial assets that seek to reflect the variations and profitability of variable income reference indices (Variable Income Index Fund), as established by the Securities and Exchange Commission; and

d) shares of investment funds, constituted in the form of an open partnership, whose portfolio is referenced in an index composed of, at least, 50 (fifty) shares disclosed by a stock exchange in Brazil, corresponding bonuses or subscription receipts and deposit certificates of such shares, and shares of investment funds in shares of investment funds with such characteristics (Fund Referenced in Stock Index), as established by the Securities and Exchange Commission; and

IV - up to 25% (twenty-five percent) in the sum of the following assets:

a) shares without a minimum percentage in circulation (free float), corresponding subscription bonuses, subscription receipts, and deposit certificates, admitted to trading on a stock exchange in Brazil;

b) shares of investment funds, constituted in the form of an open partnership, whose portfolio is composed of shares admitted to trading in organized markets, bonuses or subscription receipts and deposit certificates of such shares, and shares of investment funds in shares of investment funds with such characteristics, as per regulation established by the Securities and Exchange Commission; and

c) debentures with profit participation, or convertible into shares or exchangeable for shares, whose distribution offering has been previously registered with the Securities and Exchange Commission, or whose registration has been, by it, exempted.

Subsection III

Real Estate Modality

Art. 10. Investments of up to 100% (one hundred percent) in shares of real estate investment funds (FII) and in shares of investment funds in shares of investment funds with such characteristics (FICFII) are admitted, as established by the Securities and Exchange Commission.

Subsection
IV

On
Investments Subject to Exchange Rate Variation

Art. 11. In the investment of resources covered by this Regulation, the following limits and admitted assets must be observed:

I - up to 100% (one hundred percent) in the sum of the following assets:

a) Federal Public Debt Securities whose remuneration is associated with the variation of the foreign currency quotation;

b) shares of investment funds, constituted in the form of an open partnership, whose portfolio is composed of at least 80% (eighty percent) of assets related to the variation of foreign currency prices or to the variation of the exchange rate coupon (Foreign Exchange Investment Fund) or shares of investment funds in shares of investment funds with such characteristics, as established by the Securities and Exchange Commission;

c) shares of fixed income investment funds, constituted in the form of an open partnership, that have 80% (eighty percent), at least, of its net asset value represented by securities representative of the external debt of responsibility of the Union or shares of investment funds in shares of investment funds with such characteristics (Fixed Income External Debt Fund), as established by the Securities and Exchange Commission;

d) shares of investment funds, constituted in the form of an open partnership, of the Fixed Income, Stocks, Multimarket, and Foreign Exchange classes that include in their name the suffix “Investment Abroad”, or shares of investment funds in shares of investment funds with such characteristics, as established by the Securities and Exchange Commission;

e) shares of investment funds admitted to trading on the secondary market through a stock exchange, in Brazil, whose portfolios are composed of financial assets that seek to reflect the variations of reference indices in fixed income or variable income abroad (Foreign Investment Index Fund), provided they are registered with the Securities and Exchange Commission;

---

f) shares of investment funds classified as Multimarket whose investment policy allows the purchase of assets or derivatives with exchange rate risk, constituted in the form of an open-end condominium, or shares of investment funds in shares of investment funds with such characteristics (Multimarket Funds), in the forms regulated by the Securities and Exchange Commission (CVM); and

g) Structured Operations Certificates (COE) with Protected Nominal Value referenced in exchange rates or exchange rate variation;

II - up to 75% (seventy-five percent) in the sum of the following assets:

a) securities deposit certificates backed by shares issued by open companies or similar companies headquartered abroad – Brazilian Depositary Receipts (BDR), traded on a stock exchange in the country; and

b) shares of investment funds that bear the designation “Shares - BDR Level I”, constituted in the form of an open-end condominium, in accordance with the regulation established by the Securities and Exchange Commission (CVM);

III - up to 50% (fifty percent) in debt securities representing corporate debt of Brazilian open companies, issued and negotiable abroad; and

IV - up to 25% (twenty-five percent) in the sum of the following titles issued or unconditionally guaranteed by financial institutions abroad in foreign currency:

a) fixed-term deposits for up to 6 (six) months, renewable;

b) deposit certificates; and

c) titles issued by central governments of foreign jurisdictions and their respective central banks, provided that the external risk classification of the issuance, granted by a credit rating agency registered or recognized in Brazil by the Securities and Exchange Commission (CVM), is equal to or greater than AA- or equivalent classification.

§ 1º The acquisition of securities and financial instruments referred to in this Subsection is limited to assets considered, by the manager, to have low credit risk.

§ 2º Federal public bonds issued by the Union abroad are exempt from the provisions of § 1º.

§ 3º The securities and financial instruments issued abroad, referred to in item “a” of item I and items III and IV of the caput, must be registered in a centralized registration and deposit system, in a custodial center, or regularly book-entry, in all cases, in institutions authorized by the competent authority in the country where the investment is made or in institutions referred to in art. 4º, according to specific regulation.

§ 4º The registration, book-entry, custody, or central deposit system referred to in § 3º must allow the identification of the investment made by the insurance company, capitalization company, open pension entity, or local reinsurer, with the consequent segregation of the assets of the registration, book-entry, custody, and settlement agent.

Subsection V

Of the Other Modality

Art. 12. In the application of resources referred to in this Regulation, the following limits and admitted assets must be observed:

I - up to 100% (one hundred percent) in the sum of the following assets:

a) shares of investment funds classified as Multimarket, constituted in the form of an open-end condominium, or shares of investment funds in shares of investment funds with such characteristics (Multimarket Funds), in the forms regulated by the Securities and Exchange Commission (CVM); and

b) COE with Protected Nominal Value;

II - up to 75% (seventy-five percent) in the sum of the following assets:

a) shares of Investment Participation Funds (FIP) qualified as Investment Entities, in the forms regulated by the Securities and Exchange Commission (CVM); and

b) shares of investment funds classified as Shares – Access Market, observing the regulation established by the Securities and Exchange Commission (CVM); and

III - up to 25% (twenty-five percent) in the sum of the following assets:

a) COE with Nominal Value at Risk; and

b) certificates of Certified Emission Reductions (CER) or carbon credits from the voluntary market, admitted to trading on a stock exchange, commodities and futures exchange, or organized over-the-counter market, registered or deposited, respectively, in a registrant or central depository entity, authorized by the Central Bank of Brazil or by the Securities and Exchange Commission (CVM) in their respective areas of competence, to perform the referred activities.

§ 1º Shares of funds classified as Multimarket whose investment policy allows the purchase of assets or derivatives with exchange rate risk and COE referenced in exchange rates or exchange rate variation shall not be classified in the modality referred to in this Subsection.

§ 2º The FIP must provide in its bylaws the determination that the investment fund manager, or managers linked to its respective economic group, maintain, at minimum, 3% (three percent) of the subscribed capital of the fund.

§ 3º It is prohibited to insert a clause in the FIP bylaws that establishes preference, privilege, or differentiated treatment of any nature to the manager and/or persons linked in relation to other unitholders.

Section III

Of the Allocation Limits by Modality for each Segment

Art. 13. Insurance companies, capitalization companies, open pension entities, and local reinsurers must apply the resources referred to in this Regulation, according to each of the segments and maximum limits by modality as follows:

I - applications of open complementary pension plans and life insurance with survival coverage, whose remuneration is based on the yield of investment portfolios during the deferral period:

a) in the Fixed Income modality: up to 100% (one hundred percent), observing the limits of art. 8º and Section IV of this Chapter;

b) in the Variable Income modality: up to 70% (seventy percent), observing the limits of art. 9º and Section IV of this Chapter;

c) in the Real Estate modality: up to 20% (twenty percent), observing the limits of art. 10 and Section IV of this Chapter;

d) in the Investments Subject to Exchange Rate Variation modality: up to 20% (twenty percent), observing the limits of art. 11 and Section IV of this Chapter; and

e) in the Other modality: up to 20% (twenty percent), observing the limits of art. 12 and Section IV of this Chapter;

II - applications of open complementary pension plans and life insurance with survival coverage, whose remuneration is based on the yield of investment portfolios during the deferral period, destined exclusively to Qualified Participants as defined by the National Council of Private Insurance:

a) in the Fixed Income modality: up to 100% (one hundred percent), observing the limits of art. 8º and Section IV of this Chapter;

b) in the Variable Income modality: up to 100% (one hundred percent), observing the limits of art. 9º and Section IV of this Chapter;

c) in the Real Estate modality: up to 40% (forty percent), observing the limits of art. 10 and Section IV of this Chapter;

d) in the Investments Subject to Exchange Rate Variation modality: up to 40% (forty percent), observing the limits of art. 11 and Section IV of this Chapter; and

e) in the Other modality: up to 40% (forty percent), observing the limits of art. 12 and Section IV of this Chapter;

III - applications of insurance companies and local reinsurers linked to foreign currency operations and export credit insurance:

a) in the Fixed Income modality: up to 100% (one hundred percent), observing the limits of art. 8º and Section IV of this Chapter;

b) in the Variable Income modality: up to 49% (forty-nine percent), observing the limits of art. 9º and Section IV of this Chapter;

c) in the Real Estate modality: up to 20% (twenty percent), observing the limits of art. 10 and Section IV of this Chapter;

d) in the Investments Subject to Exchange Rate Variation modality: up to 100% (one hundred percent), observing the limits of art. 11 and Section IV of this Chapter; and

e) in the Other modality: up to 20% (twenty percent), observing the limits of art. 12 and Section IV of this Chapter; and

IV - other applications referred to in this Regulation, not related in items I to III:

a) in the Fixed Income modality: up to 100% (one hundred percent), observing the limits of art. 8º and Section IV of this Chapter;

b) in the Variable Income modality: up to 49% (forty-nine percent), observing the limits of art. 9º and Section IV of this Chapter;

c) in the Real Estate modality: up to 20% (twenty percent), observing the limits of art. 10 and Section IV of this Chapter;

d) in the Investments Subject to Exchange Rate Variation modality: up to 10% (ten percent), observing the limits of art. 11 and Section IV of this Chapter; and

e) in the Other modality: up to 20% (twenty percent), observing the limits of art. 12 and Section IV of this Chapter.

Section IV

Of the Limits by Issuer and Investment

Subsection I

Of the Allocation Limits by Issuer

Art. 14. In the application of resources referred to in this Resolution, the following limits must be observed:

I - up to 100% (one hundred percent) if the issuer is:

a) the Union;

b) funds referred to in item “c” of item I of the caput of art. 8º; and

c) investment funds specially constituted referred to in arts. 17 to 20;

II - up to 49% (forty-nine percent) if the issuer is:

a) investment fund; and

b) index fund;

III - up to 25% (twenty-five percent) if the issuer is a financial institution;

IV - up to 15% (fifteen percent) if the issuer is:

a) open company not related in item III; and

b) SPE, in the case of infrastructure debentures mentioned in item “b” of item II of the caput of art. 8º;

V - up to 10% (ten percent) if the issuer is:

a) international financial organizations;

b) securitization company;

c) FIDC and FICFIDC;

d) FII and FICFII;

e) SPE;

f) FIP; and

g) investment funds classified as Shares – Access Market; and

VI - up to 5% (five percent) if the issuer is not included in items I to V.

§ 1º For the purposes of this article, companies controlled by the same state or municipal treasuries, as well as entities that are related parties, according to § 3º of art. 3º, are considered as a single issuer.

§ 2º For the calculation of the limits defined in item III of the caput, the financial institution with co-obligations of its responsibility shall be considered as the issuer.

§ 3º For the purpose of verifying the limit established in item “b” of item V of the caput, in the case of issuances of receivable certificates with the establishment of a fiduciary regime, each separate patrimony constituted with the adoption of the referred regime is considered as the issuer.

§ 4º The portion of resources of Variable Income from open complementary pension plans and life insurance with survival coverage invested through the investment funds referred to in Chapter IV (FIEs), in equity FIEs whose portfolio contains shares that are part of a market index that is a reference for its investment policy, is exempt from observing the limits provided for in items III and IV of the caput, provided that the proportion of participation of each share in the composition of the respective index is respected.

Subsection II

Of the Concentration Limits by Issuer

Art. 15. In the application of resources referred to in this Regulation, the following limits must be observed:

I - up to 25% (twenty-five percent) of the net assets of the same:

a) FIDC and FICFIDC;

b) FII and FICFII; or

c) FIP.

II - up to 25% (twenty-five percent) of the separate patrimony constituted by the totality of credits submitted to the fiduciary regime that back the issuance of the same receivable certificate; and

III - up to 20% (twenty percent):

a) of the total capital of the same open company;

b) of the voting capital of the same open company; or

c) of the net assets of the same financial institution.

Sole Paragraph. For the purpose of verifying compliance with the limits referred to in items “a” and “b” of item III of the caput, the total of shares must be added to the total of subscription bonuses, subscription receipts, and share deposit certificates of the same company, the shares of investment funds, and the shares of investment funds in shares of investment funds classified as equity funds that have as their objective to invest in a single company, or financial or economic group.

Subsection III

Of the Allocation Limits by Investment

Art. 16. In the application of resources referred to in this Regulation, a limit of 25% (twenty-five percent) of the same class or series of titles or securities must be observed.

§ 1º This article is exempt from:

I - federal public debt securities;

II - securitized credits by the National Treasury Secretariat;

III - shares, subscription bonuses of shares, and subscription receipts of shares; and

IV - infrastructure debentures mentioned in item “b” of item II of the caput of art. 8º.

§ 2º Allocation of a maximum of 5% (five percent) of the same COE with Nominal Value at Risk is only permitted.

CHAPTER IV

OF THE INVESTMENT FUNDS ESPECIALLY CONSTITUTED (FIEs)

Art. 17. The application of resources of open complementary pension plans and life insurance, with survival coverage, structured in the variable contribution modality, whose remuneration is based on the yield of investment portfolios, must be made, during the deferral period, always in shares of investment funds especially constituted, in the form of an open-end condominium, of which insurance companies and open pension entities are, directly or indirectly, the only unitholders (FIEs).

Sole Paragraph. FIEs of plans destined to Qualified Participants, as defined by the National Council of Private Insurance, must be exclusive for this type of participant.

Art. 18. The application of resources of open complementary pension plans and life insurance must be made, during the period(s) in which the reversal of financial results is contractually provided, always in shares of investment funds especially constituted, in the form of an open-end condominium, of which insurance companies and open pension entities are, directly or indirectly, the only unitholders (FIEs).

Sole Paragraph. For open complementary pension plans and life insurance with contractual provision for the reversal of financial results approved prior to November 1, 2002, which do not contractually provide for the application of the totality of the resources of the mathematical provision of benefits to be granted in quotas of an especially constituted investment fund, the provisions of this article apply facultatively.

Art. 19. The application of resources of open complementary pension plans and life insurance with survival coverage, which do not contractually provide for the reversal of financial results during the benefit grant period, may be made, in this period, in FIE shares.

§ 1º The provisions of the caput do not apply to open complementary pension plans and life insurance without provision for the reversal of financial results approved prior to November 1, 2002, which do not contractually provide for the application of the totality of the resources of the mathematical provision of benefits to be granted in quotas of an especially constituted investment fund.

§ 2º The FIE destined for the application of the resources referred to in the caput must be distinct from the FIEs constituted to receive the resources referred to in arts. 17, 18, and 20.

Art. 20. The application of resources of life insurance that possess exclusively risk coverage, if the National Council of Private Insurance defines that they must be applied in especially constituted investment funds, must follow the same rules established for the application in FIE shares of resources of life insurance with survival coverage.

Sole Paragraph. The FIE destined for the application of the resources referred to in the caput must be distinct from the FIEs constituted to receive the resources referred to in arts. 17 to 19.

Art. 21. The following provisions apply to arts. 17 to 20:

I - the resources of the FIEs referred to in arts. 17 to 20 may be applied in shares of investment funds especially constituted to accommodate such resources, in the form of an open-end condominium (FIFEs);

II - the FIEs will be classified as:

a) FIE Type I (FIE-I): only insurance companies and open pension entities may be unitholders; or

b) FIE Type II (FIE-II): only FIEs-I may be unitholders;

III - FIFEs may only have FIEs as unitholders;

IV - each FIE, individually, must observe the provisions of Chapter III;

V - for the purpose of calculating the limits referred to in this Regulation, the portfolios of FIEs are considered to be the composition of their own portfolio and the portfolios of all FIFEs in which they invest, weighted by the participation of these in the net assets of those; and

VI - the portfolios of FIFEs must be composed exclusively of the assets contemplated in Chapter III, the limits provided for in the referred Chapter and in art. 25 of this Regulation not applying to them.

CHAPTER V

OF DERIVATIVES

Art. 22. It is optional for the investment funds especially constituted referred to in arts. 17 to 20 and item “c” of item I of the caput of art. 8º of this Regulation to carry out operations through derivative contracts.

Art. 23. The operation of the FIE or FIFE in derivative markets:

I - must observe the prior evaluation of the risks involved;

II - is conditioned on the existence of control systems adequate to its operations;

III - cannot generate, at any time, the possibility of loss greater than the net asset value of the investment fund;

IV - cannot generate, at any time, the possibility that the unitholder is obliged to contribute additional resources to cover the fund's loss;

V - cannot carry out short option sales operations; and

VI - cannot be carried out without the guarantee of the central counterparty of the operation.

§ 1º Derivative contracts must be registered, cleared, and financially settled in systems authorized by the Central Bank of Brazil or by the Securities and Exchange Commission (CVM), in their respective areas of competence, and that have an agreement with the Superintendence of Private Insurance.

§ 2º The registration, clearing, and settlement systems referred to in § 1º must allow the identification of the derivative contract carried out.

§ 3º The insurance company, capitalization company, open pension entity, and local reinsurer must inform the Superintendence of Private Insurance, when requested, of the characteristics, counterparties, premiums paid, margins deposited, as well as the exposure of the derivative contracts entered into.

§ 4º The exposure resulting from the use of derivative instruments must be considered for the purpose of classifying the portfolio of the investment funds especially constituted referred to in arts. 17 to 20, observing the asset requirements, allocation limits by modality and segment, limits by issuer and investment, and timeframes referred to in this Regulation.

§ 5º The use of derivative instruments by FIE and FIFE is conditioned on its bylaws containing specific clauses explaining the provisions provided for in items I to VI of the caput.

Art. 24. The positions of the FIE or FIFE in derivative markets must observe the following conditions:

I - margin required limited to 15% (fifteen percent) of the net asset value of each FIE or FIFE; and

II - total value of option premiums paid limited to 5% (five percent) of the net asset value of each FIE or FIFE.

Sole Paragraph. In the calculation of the limit referred to in item II of the caput, in the case of operations with options that have, cumulatively, the same quantity, the same underlying asset, the same maturity, and in which the premium represents the maximum loss of the operation, the value of the premiums paid minus the value of the premiums received shall be considered.

CHAPTER VI

OF COMMITTED OPERATIONS

Art. 25. It is optional for the investment funds especially constituted referred to in arts. 17 to 20 and item “c” of item I of the caput of art. 8º to carry out fixed income bond purchase operations with a commitment to resell, conjugated with the repurchase commitment assumed by the seller, for a predetermined future date (committed operation).

§ 1º The operations referred to in the caput are limited to 25% (twenty-five percent) of the net asset value of each investment fund especially constituted referred to in arts. 17, 18, and 20.

§ 2º The fixed income titles received as collateral in the carrying out of the committed operation must be considered for the purpose of classifying the fund's portfolio in the modalities, requirements, conditions, or limits defined in this Regulation.

§ 3º Committed operations must be registered and settled in an institution authorized by the Central Bank of Brazil or by the Securities and Exchange Commission (CVM), in their respective areas of competence.

§ 4º The institution referred to in § 3º must allow the identification of the committed operation carried out.

§ 5º The carrying out of the operations referred to in the caput is conditioned on the prior authorization of the Superintendence of Private Insurance, in accordance with what is determined by art. 85 of Decree-Law No. 73, of November 21, 1966.

§ 6º The committed operations carried out by the investment funds especially constituted referred to in item “c” of item I of the caput of art. 8º must be backed obligatorily by the titles referred to in items “a” and “b” of item I of the caput of art. 8º.

CHAPTER VII

OF THE TIMEFRAMES OF THE INVESTMENT FUNDS ESPECIALLY CONSTITUTED

Section I

Of the Timeframes

Art. 26. The set of fixed income assets of the investment funds especially constituted referred to in arts. 17 to 20, of the same insurance company or open pension entity, must present a minimum remaining average maturity of 1,095 (one thousand and ninety-five) calendar days.

§ 1º The metrics and definitions necessary for the calculation of the classification rules provided for in the caput will observe the provisions of Section II of this Chapter.

§ 2º For the purpose of verifying the timeframe referred to in the caput, the arithmetic mean of the values observed daily, at minimum, in the period referring to the last 63 (sixty-three) business days preceding the reference day, must be used.

§ 3º The administrators of the funds referred to in the caput, when requested by the Superintendence of Private Insurance, must inform of the timeframe referred to in the caput.

Section II

Of the Metrics and Definitions for the Calculation of the Timeframes of the Investment Funds Especially Constituted

---

Art. 27. For the purpose of calculating the time periods referred to in art. 26, the repurchase operations referred to in art. 25 and the assets referred to in art. 8º must be considered, with the exception of the asset listed in item “d” of paragraph IV of the caput of art. 8º, the fixed-income convertible or exchangeable debentures referred to in item “c” of paragraph IV of the caput of art. 9º and item “a” of paragraph I of the caput of art. 12, which are part of the portfolios of investment funds especially constituted as referred to in arts. 17 to 20.

Sole paragraph. For the calculation of the remaining average maturity of investments in investment funds, referred to in items “c” and “d” of paragraph I and items “b” and “c” of paragraph III of the caput of art. 8º of this Regulation, the final assets used in the calculation of the time periods referred to in art. 26 must be considered, as provided in the caput.

Art. 28. For the purposes of the provision in art. 26, the remaining average maturity of the portfolio is given by the remaining average maturity, in calendar days, weighted by their respective financial values:

I - of fixed-income securities; and

II - of repurchase operations.

§ 1º For the purpose of the provision in item I of the caput, the fixed-income assets specified in art. 27 must be considered.

§ 2º Fixed-income securities received as collateral for repurchase operations must be disregarded in the calculation referred to in the caput.

§ 3º The remaining average maturity of a fixed-income security is given by the average of the maturities of each principal and interest payment, weighted by their respective nominal values on the date of calculation of the portfolio's average maturity, without considering any index projection.

§ 4º The maturity of each principal and interest payment is given by the remaining maturity of each financial event, understood as the number of calendar days between the date of calculation of the portfolio's average maturity and the date of each maturity, excluding the calculation date from the count and including the maturity date.

§ 5º The remaining average maturity of the repurchase operation is understood as the number of calendar days between the date of calculation of the portfolio's average maturity and the maturity date of the operation, excluding the calculation date from the count and including the maturity date.

§ 6º The financial value referred to in the caput is given by the book value, evaluated daily.

Section III

Formulas for Calculating the Remaining Average Maturity of the Fixed-Income Portfolio of Especially Constituted Investment Funds

Art. 29. For the calculation of the time period referred to in art. 28 of this Regulation, the following formulas must be considered:

I - remaining average maturity of a fixed-income security (PMtrfi), in calendar days:

a) q is the quantity of financial events (interest or principal) of fixed-income security i;

b) Qj is the remaining maturity of each financial event j (interest or principal) of fixed-income security i, given in calendar days; and

c) VNqj is the nominal value of each financial event j (interest or principal) of fixed-income security i;

II - remaining average maturity of the fixed-income security portfolio (PMctrf), in calendar days:

a) m is the quantity of fixed-income securities in the portfolio;

b) PMtrfi is the remaining average maturity of fixed-income security i, calculated according to §§ 3º and 4º of art. 28, in calendar days; and

c) VFtrfi is the financial value of fixed-income security i;

III - remaining average maturity of the repurchase operation portfolio (PMcoc), in calendar days:

a) n is the quantity of repurchase operations in the portfolio;

b) Poci is the remaining maturity of repurchase operation i calculated according to § 5º of art. 28, in calendar days; and

c) VFoci is the financial value of repurchase operation i; and

IV - remaining average maturity of the fixed-income portfolio (PMR), in calendar days:

CHAPTER VIII

OF PASSIVE DISALIGNMENT OF ESPECIALLY CONSTITUTED INVESTMENT FUNDS

Art. 30. Passive disalignments resulting from the following will not be considered as non-compliance with the limits established in this Resolution:

I - fluctuation in the values of the assets of the FIE portfolio;

II - receipt of shares as bonus;

III - receipt of bonuses or subscription receipts;

IV - exercise of the right of preference; or

V - redemption of FIE quotas.

§ 1º The excesses referred to in this article must be eliminated within a period of 1 (one) year from the occurrence of the disalignment.

§ 2º Investments that aggravate the verified excesses are prohibited until the respective alignment.

CHAPTER IX

OF RESOURCES REQUIRED IN THE COUNTRY TO GUARANTEE OBLIGATIONS OF ADMITTED REINSURERS

Art. 31. The resources required in the Country to guarantee the obligations of admitted reinsurers, observing the other provisions in force, may only be applied, individually or cumulatively:

I - up to 100% (one hundred percent) in:

a) federal public bonds; and

b) FIE, whose portfolio is composed exclusively of federal public bonds; and

II - up to 80% (eighty percent) in:

a) debentures whose public offering has been registered with the Securities and Exchange Commission (Comissão de Valores Mobiliários), or for which a waiver has been granted, issued by corporations, with a low credit risk rating, granted by a risk rating agency registered or recognized by the Securities and Exchange Commission;

b) obligations issued by international financial organizations authorized to raise resources in Brazil, with a low credit risk rating, granted by a risk rating agency registered or recognized by the Securities and Exchange Commission;

c) quotas of investment funds, constituted in the form of an open-ended condominium, whose portfolio is composed of at least 80% (eighty percent) of assets related to the variation in foreign currency prices or to the variation of the currency swap, or quotas of investment funds in quotas of investment funds with such characteristics (Currency Fund), as regulated by the Securities and Exchange Commission;

d) quotas of fixed-income investment funds, constituted in the form of an open-ended condominium, which have at least 80% (eighty percent) of their net asset value represented by securities representing external debt of the Union, or quotas of investment funds in quotas of investment funds with such characteristics (Fixed Income External Debt Fund), as regulated by the Securities and Exchange Commission;

e) quotas of investment funds of the Fixed Income, Equity, Multi-Manager, and Currency classes that include the suffix “Investment Abroad” in their name, constituted in the form of an open-ended condominium, or quotas of investment funds in quotas of investment funds with such characteristics, as regulated by the Securities and Exchange Commission; and

f) quotas of investment funds admitted to trading on the secondary market through a stock exchange in Brazil, whose portfolios are composed of financial assets that seek to reflect variations in reference indices for fixed income or equity abroad, provided they are registered with the Securities and Exchange Commission (Index Fund for Investment Abroad).

Sole paragraph. The requirements referred to in Section IV of Chapter III of this Regulation apply, where applicable, to the provisions of this article.

CHAPTER X

OF PROHIBITIONS

Art. 32. Applications referred to in this Regulation will not be accepted in:

I - securities or financial instruments issued or jointly obligated by individuals;

II - shares of open companies admitted to trading on an organized over-the-counter market accredited by the Securities and Exchange Commission that do not belong to an organized over-the-counter market index, or that have not belonged to the same index in the previous month, as well as their respective subscription bonuses, subscription receipts, depositary receipts for shares, or any securities or financial instruments convertible into shares or whose exercise gives the right to receive or acquire shares;

III - portfolios managed by individuals or investment funds whose portfolios are managed by individuals; and

IV - quotas of investment funds that do not have procedures for evaluation and measurement of portfolio investment risk.