Regulatory Alerts2016-02-24
Instruction COSOB No. 16-02 of February 24, 2016, on the Honesty Requirements for the Executive of a Commercial Stock Exchange Intermediary
Issued by the Algerian Capital Market Authority (COSOB), this instruction defines the documentation required to verify the honesty of executives at commercial stock exchange intermediary firms. It mandates that executives must not have been convicted of specific crimes, including fraud, corruption, money laundering, or bankruptcy, nor declared bankrupt or civilly liable for a bankrupt entity. Applicants must submit a third-category criminal record extract, a sworn declaration of no convictions, and any additional documents requested by the Commission for assessment.
Instruction COSOB No. 16-02 of February 24, 2016, on the Honesty Requirements for the Executive of a Commercial Stock Exchange Intermediary
Article 1. — Pursuant to Article 11 of COSOB Regulation No. 15-01 of April 15, 2015, regarding the conditions for approval, obligations, and supervision of stock exchange intermediaries, this instruction aims to define the documents that the applicant must submit to attest to the honesty of the executives of the Stock Exchange Intermediary – commercial company.
Article 2. — The applicant must be able to justify that the executives of the Stock Exchange Intermediary – commercial company have not been convicted:
- for a felony;
- for embezzlement, extortion, corruption, theft, fraud, issuing a check without sufficient funds, or breach of trust;
- for misappropriations committed by public depositaries or by extortion of funds or valuables;
- for bankruptcy;
- for violations of exchange legislation and regulations;
- for forgery of documents or forgery of private commercial or banking documents;
- for violations of company law;
- for handling goods obtained as a result of these offenses;
- for any offense related to drug trafficking, money laundering, and terrorism;
- that the executives have not been convicted by a foreign court with final judgment, which constitutes a conviction for one of the crimes or misdemeanors mentioned in this article under Algerian law;
- that the executives have not been declared bankrupt, that bankruptcy has not been extended to them, and that they have not been convicted of civil liability as an officer of a bankrupt legal entity, whether in Algeria or abroad, or that such conviction has not been rehabilitated.
Article 3. — The applicant must submit for each executive:
- a third-category extract of the criminal record;
- a sworn declaration attesting that they have not been convicted for any of the offenses cited in the previous article;
- and any document required by the Commission to assess whether the executives meet the honesty conditions.
The Commission may verify the information presented with specialized public institutions and organizations to control their accuracy.
Article 4. — This instruction enters into force on the date of its signature.
Done in Algiers, on February 24, 2016
Abdelhakim BERRAH COSOB Regulation Instruction No. 16-02