Resolution CMN No. 4484 — Amends the Regulation annexed to Resolution No. 4,444 of November 13, 2015 regarding the application of resources from technical reserves, provisions, and funds of insurance companies and capitalization societies

The Central Bank of Brazil, pursuant to Article 9 of Law No. 4,595 of December 31, 1964, makes public that the National Monetary Council, in an extraordinary session held on May 5, 2016, considering the provisions of Articles 28 of Decree-Law No. 73 of November 21, 1966, 4 of Decree-Law No. 261 of February 28, 1967, 1, § 5 of Law No. 10,185 of February 12, 2001, 9 of Complementary Law No. 109 of May 29, 2001, and 17 of Complementary Law No. 126 of January 15, 2007,

RESOLVES:

Art. 1 The Regulation annexed to Resolution No. 4,444 of November 13, 2015, shall be effective with the following alterations:

“Art. 3 ........................................................

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§ 4 The provision of § 2 of this article does not apply to shares that are part of a market index when allocated to investment fund portfolios for which said index is a reference for the fund's investment policy, provided that the proportion of participation of each share in the composition of said index is respected.” (NR)

“Art. 8 ........................................................

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b) infrastructure debentures issued in the manner set forth in Art. 2 of Law No. 12,431 of June 24, 2011, by a corporation, open or closed, whose public offering has been registered with the Securities and Exchange Commission (Comissão de Valores Mobiliários), or has been exempted, and which possess a guarantee of federal public bonds representing at least 30% (thirty percent) of the principal at the maturity date of the commitments stipulated in the issuance deed, observing the regulations of the Securities and Exchange Commission;

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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 as a corporation, except for the hypothesis provided for in item II, letter “b” of this article;

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

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§ 3 Credit Rights Investment Funds within 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 share funds with these assets, shall not be considered as guarantor assets mentioned in letter “d” of item IV, in accordance with the regulation established by the Securities and Exchange Commission.

§ 4 The limit referred to in item IV, for application to the asset referred to in letter “a”, may be increased to 30% (thirty percent) in the case of investment fund shares in the manner provided for in Art. 3 of Law No. 12,431 of 2011, or debentures issued by an SPE constituted as an open or closed corporation, real estate receivables certificates, and senior shares of standardized or non-standardized credit rights investment fund issuances or assignments by concessionaires, permit holders, authorized operators, or lessees, to raise resources aimed at implementing investment projects in the infrastructure area, in the manner set forth in § 1-A of Art. 2 of Law No. 12,431 of 2011.” (NR)

“Art. 9 ........................................................

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b) shares of investment funds, constituted in the form of an open partnership, whose portfolio is composed exclusively of the shares admitted in letter “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, in accordance with the regulation established by the Securities and Exchange Commission;

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b) shares of investment funds, constituted in the form of an open partnership, whose portfolio is composed exclusively of the shares admitted in letter “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, in accordance with the regulation established by the Securities and Exchange Commission;

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b) shares of investment funds, constituted in the form of an open partnership, whose portfolio is composed exclusively of the shares admitted in letter “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, in accordance with the regulation established by the Securities and Exchange Commission;

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

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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, in accordance with the regulation established by the Securities and Exchange Commission;

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“Art. 10. Applications of up to 100% (one hundred percent) in real estate investment fund shares (FII) and in shares of investment funds in shares of investment funds with such characteristics (FICFII) shall be admitted, in accordance with the regulation established by the Securities and Exchange Commission.” (NR)

“Art. 11. .......................................................

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

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

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III - up to 50% (fifty percent) in titles and securities representing corporate debt of Brazilian publicly-held companies, issued and tradable abroad;

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“Art. 12. ......................................................

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§ 3 Shares of funds classified as “Multimarket” whose investment policy allows the purchase of assets or derivatives with exchange risk and COEs referenced in exchange rates or exchange rate variation shall not be classified in this modality.” (NR)

“Art. 13. .......................................................

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

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“Art. 14. In the application of the resources governed by this Resolution, the following limits must be observed:

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

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

a) investment fund;

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a) open company not related in item III;

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

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c) FIDC and FICFIDC;

d) FII and FICFII; and

e) SPE;

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§ 4 The portion of Variable Income resources from open supplementary pension plans and life insurance with survivorship coverage invested through the investment funds referred to in Chapter IV (FIE) 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 this article, provided that the proportion of participation of each share in the composition of the respective index is respected.” (NR)

“Art. 15. .......................................................

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b) FII and FICFII;

c) FIP and FICFIP; and

d) FMIEE;

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

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; and

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

Sole Paragraph. For the purpose of verifying compliance with the limits referred to in letters “a” and “b” of item III, the total number of shares, the total bonus of subscription, subscription receipts and deposit certificates of shares 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, must be added to the total of shares.” (NR)

“Art. 17. .......................................................

§ 1 The resources of the FIEs referred to in the caput may be applied in shares of investment funds especially constituted to receive such resources, in the form of an open partnership (FIFE).

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§ 3 FIFE may only have FIE as a shareholder.

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§ 5 For the purpose of computing 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 FIFE in which they invest, weighted by their participation in their net assets.

§ 6 The portfolios of FIFE must be composed exclusively of the assets contemplated in Chapter III, and the limits provided for in that same Chapter and in Art. 22 of this Regulation do not apply to them.

§ 7 It is permitted to apply the resources governed by this article in a single FIE, including the fund referred to in letter “c” of item I of Art. 8.” (NR)

“Art. 21. .......................................................

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§ 4 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 19, observing the requirements of the assets, the allocation limits by modality and segment, the limits per issuer and investment, and the timeframes governed by this Regulation.” (NR)

“Art. 24. For the purpose of calculating the timeframes referred to in Art. 23, repurchase agreements referred to in Art. 22 and the assets referred to in Art. 8 must be considered, with the exception of the asset listed in letter “d” of item IV of Art. 8, the convertible or exchangeable fixed-income debentures into shares referred to in letter “c” of item IV of Art. 9 and letter “a” of item I of Art. 12, which are part of the portfolios of the investment funds especially constituted referred to in Arts. 17 and 18.

Sole Paragraph. For the computation of the average remaining term and renegotiation terms of applications in investment funds, referred to in letters “c” and “d” of item I and letters “b” and “c” of item III of Art. 8 of this Regulation, the final assets used in the calculation of the timeframes referred to in Art. 23 must be considered, as set forth in the caput.” (NR)

Art. 2 Article 1 of Resolution No. 3,042 of November 28, 2002, shall be effective with the following wording:

“Art. 1 Establish that the resources of the reserves, provisions, and funds of insurance companies specialized in health insurance, constituted in accordance with the criteria fixed by the National Council of Supplementary Health (Consu), must be applied observing the guidelines and conditions provided for in the Regulation annexed to Resolution No. 4,444 of November 13, 2015, except those contained in Arts. 17 to 19 of said Regulation.

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Art. 3 This Resolution enters into force on May 22, 2016.

                        Alexandre Antonio Tombini President of the Central Bank of Brazil