New Rules For The Brazilian Structured Operations Certificate (COE)

On November 20, 2013, the Board of the Central Bank of Brazil (Banco Central do Brasil – Bacen) issued the two Circulars mentioned herein, about certain issues of the Structured Operations Certificates (Certificados de Operações Estruturadas – COEs), created by Law No. 12,249, of June 11, 2010, and regulated by the Brazilian Monetary Council (Conselho Monetário Nacional – CMN) Resolution No. 4,623, of September 5, 2013: (a) Bacen Circular No. 3,684 – that establishes standardized methodology for performing sensitivity analysis of the market value of the COE, for information purposes to the registry system administrator; and (b) Bacen Circular No. 3,685 – that establishes criteria for evaluation of the relationship between the initial investment in COE and their potential results.