The Same Trustee May Now Participate In Different Issues Of The Same Company In Brazil

The Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários) issued CVM Instruction No. 519, of January 26, 2012 (CVM Instr. 519/2012), which amends CVM Instruction No. 28, of November 23, 1983 (CVM Instr. 28/1983), dealing with the fiduciary activity performed by the debenture holders´ trustee (agente fiduciário dos debenturistas) in the Brazilian capital market. The changes introduced by CVM Instr. 519/2012 are described herein.

Before commenting these changes, however, it is important to mention that, at the beginning of the current year, CVM Instruction No. 490, of January 24, 2011 (CVM Instr. 490/2011), was enacted in order to modify CVM Instr. 28/1983 and allow the same trustee to participate of issues of debentures made by any affiliate, controlling, controlled or company which is a member of the same group of the issuer¹.