Regulatory Alerts2023-08-24
Instruction No. 19/99 on the Contract for the Management of Listed Securities
The Regional Council for Public Savings and Financial Markets of the West African Monetary Union issues Instruction No. 19/99, which mandates that listed securities management mandates exercised by approved wealth management companies, investment firms, and banks must be formalized in a written contract. This contract must explicitly detail the parties' identity and liability, the mandate's objectives and characteristics, communication methods, validity and termination conditions, jurisdictional clauses, signing details, and management fees. Furthermore, the agreement must bear the signatures of both the principal and the agent, ensuring that all entrusted mandates are managed strictly in the clients' best interests.
WEST AFRICAN MONETARY UNION REGIONAL COUNCIL FOR PUBLIC SAVINGS AND FINANCIAL MARKETS
INSTRUCTION NO. 19/99 ON THE CONTRACT FOR THE MANAGEMENT OF LISTED SECURITIES Having regard to the Convention of 3 July 1996 establishing the Regional Council for Public Savings and Financial Markets, hereinafter referred to as the Regional Council, Having regard to the General Regulations on the Organization, Operation and Supervision of the Regional Financial Market of the UMOA, hereinafter referred to as the General Regulations, adopted by decision No. 001/97 of the Council of Ministers on 28 November 1997, Having regard to Articles 38 and 60 of the said General Regulations, Having regard to the decision of the Regional Council at its session on 2 July 1999, THE REGIONAL COUNCIL HEREBY RESOLVES: Article 1 The listed securities management mandate exercised by Wealth Management Companies, Investment and Intermediation Companies, and banks approved by the Regional Council in their capacity as account keepers and clearing houses must necessarily be subject to a written contract. Article 2 The contract must contain the following mandatory details:
- information concerning the contracting parties:
- the identity and address of the contracting parties,
- the liability of the contracting parties.
- information concerning the management mandate:
- the objectives of the management mandate (security, profitability),
- the characteristics of management,
- the means of transmitting instructions (telephone, fax, telex),
- the notification of the mandate,
- the validity conditions of the contract,
- the termination conditions of the management mandate,
- the jurisdiction clause,
- the date and place of contract signing,
- management fees. Article 3 The listed securities management mandate contract must necessarily bear the signatures of the principal and the agent. Article 4 Investment and Intermediation Companies, Wealth Management Companies, and banks approved by the Regional Council to exercise account keeping and clearing activities must manage the mandates entrusted to them in the best interest of their clients. Article 5 This Instruction shall be published wherever necessary. Done at Abidjan, on 2 July 1999 For the Regional Council The President L. NAKA 2