Recommendation on Minimum Information to be Provided by Stock Market Intermediaries to Investors

17, Campagne CHKIKEN – 16043 - Val d'HYDRA – Ben Aknoun- Alger. Tel: 023 47 27 93/ 47 28 03 Fax: 023 47 28 00 / 47 28 04

The Algerian Democratic and Popular Republic

COSOB Recommendation on Minimum Information to be Provided by Stock Market Intermediaries to Investors

Stock market intermediaries (SMIs) and professionals authorized to provide advice on the placement of securities and financial products listed on the stock exchange or issued through a public offering procedure must present each solicited client with an information note containing all information deemed useful for making investment decisions in securities and other financial products.

The information note must:

• Be drafted on a written document in a concise, clear, and accurate manner using simple language to facilitate understanding by the investor;
• Be offered free of charge to the client and before subscribing to the product;
• Contain all relevant information necessary for making an investment decision, taking into account the complexity of each proposed product. It must highlight all characteristics of the product, including definitions, costs, risks, expected returns, and associated rights and benefits;
• Contain references and useful links guiding the investor to more detailed information;
• Mention the references of the SMI;
• Be available throughout the SMI's network and on its website.

The information note must be communicated to the Commission (30 days) before its publication. The information reported in the note must be updated as necessary to incorporate new developments related to the proposed products. Any substantial modification must be brought to the attention of the Commission under the same conditions.

The Commission may, if necessary, review the information note even after its dissemination and request its modification or withdrawal if it deems that it harms the interests of clients.

The minimum information, below, must be developed in the information note:

• Definition of the product: A precise and succinct definition must be given for each title likely to be issued and/or traded on the stock exchange, namely:

  • Shares or corporate bonds;
  • Treasury bonds assimilable;
  • Shares or units of UCITS (Undertakings for Collective Investment in Transferable Securities).

• Characteristics of the product:

  • Nominal value of the title;
  • Issue price;
  • Quotation and price at the secondary market level;
  • Redemption price;
  • Redemption terms.

• Rights linked to the product: The rights linked to each product must be clearly explained in the information note so that investors can base their decisions and distinguish between the rights conferred by each product;

• Risks associated with the product;

• Purchase/sale procedure for titles: The note must describe to the client the entire purchase/sale procedure from the receipt of the order to its execution.

• Remuneration:

  • Interest rate/coupon detachment;
  • Dividend.

• Other benefits associated with the product:

  • Preferential subscription rights for future issuances;
  • Voting rights;
  • Conversion of titles... etc.

• Charges and commissions related to the product;

• Contact details of the persons and structures responsible for receiving and executing orders.

Commission for the Organization and Supervision of Stock Market Operations Tasqamut n usuddes d toessast n temhilin n tbursa

17, Campagne CHKIKEN – 16043 - Val d'HYDRA – Ben Aknoun- Alger. Tel: 023 47 27 93/ 47 28 03 Fax: 023 47 28 00 / 47 28 04