New Rules On The Brazilian Exchange Traded Funds (EFTs)

On September 16, 2013, the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários – CVM) issued CVM Instruction No. 537 (CVM Instr. 537/2013), amending CVM Instruction No. 359, of January 22, 2002 (CVM Instr. 359/2002), that regulates the incorporation, administration and operation of the Brazilian Market Index Investment Funds (Index Funds), also known in Brazil and abroad as Exchange Traded Funds (ETFs).

The EFT is organized as an open-end joint ownership, whose resources are intended for investment in securities portfolio that seek to replicate the variations and profitability of a benchmark index for an indefinite period of time. For this purpose, benchmark index means a specific market index recognized by CVM, with which the investment policy of the EFT is associated.