Regulatory Alerts2023-09-12
Circular No. 01-2018 on the Procedures for the Split or Transformation of Common Investment Funds into Variable Capital Investment Companies on the UMOA Regional Financial Market
The Regional Council for Public Savings and Financial Markets (CREPMF) issues this circular to establish the procedural framework for Common Investment Funds (FCPs) that exceed regulatory asset thresholds. It mandates that affected FCPs must either split into multiple funds or transform into Variable Capital Investment Companies (SICAVs) based on decisions by the management company's board. The document defines transformation as a complete asset and liability transfer to a newly created SICAV, while defining split as dividing an FCP into two or more funds with identical characteristics subject to prior regulatory approval.
West African Monetary Union Regional Council for Public Savings and Financial Markets CIRCULAR NO. 01-2018 ON THE PROCEDURES FOR THE SPLIT OR TRANSFORMATION OF COMMON INVESTMENT FUNDS INTO VARIABLE CAPITAL INVESTMENT COMPANIES ON THE UMOA REGIONAL FINANCIAL MARKET
The General Secretariat of the Regional Council for Public Savings and Financial Markets (CREPMF) reminds approved Collective Investment Schemes in Securities (OPCVMs) and OPCVM Management Companies (SGOs) on the regional financial market that, in accordance with current regulatory provisions, Common Investment Funds (FCPs) must, from a certain level of assets under management, undergo a split into multiple Funds or a transformation into a Variable Capital Investment Company (SICAV). This circular sets out the general principles that approved stakeholders must comply with when carrying out these split or transformation operations.
I. DEFINITIONS For the application of this circular, is understood by:
- TRANSFORMATION: The operation by which a Common Investment Fund is transformed into a Variable Capital Investment Company, through the transfer of all assets and liabilities of the Fund to the SICAV to be created among the unit holders. The FCP that thus transfers all its net assets shall be dissolved.
- SPLIT: The operation by which a Common Investment Fund is divided into two or more Common Investment Funds, following the exceedance of the maximum regulatory asset level. The Common Investment Funds resulting from the split must retain the same characteristics as the initial Fund, unless prior authorization is granted by the Regional Council for Public Savings and Financial Markets. Any project for the transformation or split of an OPCVM is decided by the Management Company's Board of Directors. It is submitted for prior approval to the Regional Council for Public Savings and Financial Markets.
1 Avenue Joseph ANOMA TEL.: (225) 20 21 57 42 | 20 31 56 20 P.O. Box 1878 Abidjan 01/Côte d'Ivoire Fax: (225) 20 33 23 04 Website: http://www.crepmf.org Email: sg@crepmf.org