Regulatory Alerts2000-04-24
General Decision No. 2 of April 24, 2000 in Application of the Stockbroker Statute
The Financial Market Council issued this General Decision to establish the mandatory human and material resources required for stockbrokers to obtain preliminary and final approval. It mandates that applicants assign dedicated personnel without concurrent roles, maintain segregated order-receiving and executing structures, and operate from secure premises equipped with specific IT hardware for real-time exchange and clearing systems. Furthermore, the decision requires approved timestamping mechanisms, certified telephonic recording for phone orders, and computerized register options to ensure regulatory compliance.
General Decision No. 2 of April 24, 2000 in Application of the Stockbroker Statute 1 GENERAL DECISION OF THE FINANCIAL MARKET COUNCIL NO. 2 dated April 24, 2000 regarding the human and material means necessary for the exercise of stockbroker activities. The Board of the Financial Market Council, meeting on February 24, 2000, Having regard to Law No. 94-117 of November 14, 1994 on the reorganization of the financial market and in particular its Articles 28, 31, 48, 57 and 58, Having regard to Decree No. 99-2478 of November 1, 1999 establishing the statute for stockbrokers and in particular its Articles 1 and 3, Decides: Article 1 This General Decision applies to any person who has obtained preliminary approval for the exercise of stockbroker activities and who is seeking final approval, as well as to active stockbrokers in accordance with Article 11, paragraph 2 of the aforementioned Decree No. 99-2478. Article 2 For each of the following activities that it plans to undertake, the applicant commits to assigning at least one person who cannot hold other concurrent activities:
- trading and registration of securities and financial products;
- individual portfolio management in securities;
- portfolio management in securities for the stockbroker's own account;
- portfolio management in securities on behalf of collective investment undertakings (OPCVM);
- counterparty services;
- market making;
- financial solicitation. Article 3 The applicant must organize its operations to distinguish within its establishment a structure responsible for receiving and processing orders, as well as a separate structure responsible for executing orders on the stock exchange. Article 4 The applicant must have a dedicated premises exclusively used for its professional activities, meeting safety standards and equipped in particular with an anti-theft alarm system, a fire detector, and a safe for storing the cash and securities necessary for its operations. Article 5 The applicant must at least demonstrate the existence of the following equipment:
- computer hardware necessary for connecting to the real-time information system of the Tunis Stock Exchange,
- computer hardware necessary for connecting to the delivery system currently in force with the Depository, Clearing and Settlement Company. Article 6 If the applicant has opted to keep its registers on computer media, it must prior to operation submit a request to that effect to the Financial Market Council in accordance with Article 69 of the aforementioned Decree No. 99-2478. 2 General Decision No. 2 of April 24, 2000 in Application of the Stockbroker Statute Article 7 If the applicant accepts telephone orders, it must prior to operation submit its telephonic recording equipment for approval by the Financial Market Council. Article 8 The applicant must demonstrate a system capable of timestamping orders received from or initiated by clients. Timestamping refers to any system that assigns a stock order the date and time at which it was given or initiated. This system may only begin operating after receiving approval from the Financial Market Council. Article 9 This General Decision shall be published in the official bulletin of the Financial Market Council following the endorsement of the Minister of Finance. Tunis, April 24, 2000 Endorsement For the Board of the Financial Market Council Minister of Finance President Taoufik BACCAR Béchir EL YOUNSI