New Rules On Information Reporting For Investment Funds In Brazil

Two Instructions have been issued to date by the Brazilian Securities and Exchange Commission (CVM) to regulate the reporting of information about several kinds of investment funds, they are: Instructions CVM No. 405 and CVM No. 407, of February 27 and May 10, 2004, respectively. Instruction CVM No. 407 is actually a slight adjustment of Instruction CVM No. 405.

Since April 5, 2004 the startup, closing, conversion, spin-off, merger, consolidation and variation of information about financial investment funds, funds of investment in investment funds quotas, both regulated by specific rules, have been events reported to the CVM exclusively, via its electronic information system. This allows registration of the fund in respect to which information is reported (as is). Regarding specifically startups, fund managers are additionally required to attach the fund’s internal regulation and current prospect via that same electronic system.