Regulatory Alerts2023-09-12
Circular No. 14/CREPMF/2022 on Liquidity Management Tools
The Regional Council for Public Savings and Financial Markets (CREPMF) has issued Circular No. 14/2022 to mandate that approved West African Monetary Union (UMOA) collective investment schemes and their management companies implement standardized liquidity management tools, including redemption gates, swing pricing, adjusted fees, side pockets, and temporary redemption suspensions. The regulation establishes precise trigger thresholds, calculation methodologies, maximum duration limits, and strict confidentiality and reporting obligations to ensure fair treatment of investors and preserve market integrity during liquidity stress. It further requires management companies to formally document their policies, maintain records for regulatory review, and apply proportional execution rules while prohibiting post-centralization order modifications.