The Rules On BDRs Change Again For Better

On April 5, 2017 the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários – CVM) enacted CVM Instruction No. 585 (ICVM 585/2017), which amends the applicable regulation on Brazilian Depositary Receipts (BDRs) constituted by: (i) CVM Instruction No. 332, of April 4, 2000 (ICVM 332/2000), which provides for the issuance and trading of BDRS; (ii) CVM Instruction No. 476, of  January 16, 2009 (ICVM 476/2009), which provides for public offerings of securities distributed with restricted efforts; (iii) CVM Instruction No. 480, of December 7, 2009 (ICVM 480/2009), which provides for the registration of issuers, foreign and domestic, of securities admitted to trading on regulated markets in Brazil; and (iv) CVM Instruction No. 494, of April 20, 2011 (ICVM 494/2011), which provides for the incorporation and operation of investment clubs.