Regulatory Alerts2023-11-07
Instruction COSOB No. 23-02 of November 7, 2023, Establishing Due Diligence Requirements for Participatory Investment Advisors During Project Selection
The Commission for the Organization and Supervision of Stock Exchange Operations (COSOB) issued Instruction No. 23-02 to mandate specific due diligence procedures for Participatory Investment Advisors. This regulation requires advisors to verify project viability, assess the competence and integrity of project promoters, and ensure the coherence of information provided before selecting projects for investor platforms. The instruction entered into force immediately upon its signature on November 7, 2023, in accordance with Article 21 of Regulation COSOB No. 23-01.
REPUBLIC OF ALGERIA DEMOCRATIC AND POPULAR Market Supervisory Authority Commission for the Organization and Supervision of Stock Exchange Operations
Instruction COSOB No. 23-02 of November 7, 2023, Establishing the Due Diligence That the Participatory Investment Advisor Must Perform When Selecting Participatory Investment Projects
Article 1st – The purpose of this instruction is to establish the framework regarding the due diligence that the Participatory Investment Advisor must implement to proceed with the selection of participatory investment projects to be proposed to investors via its participatory investment advisory platform, in application of Article 21 of COSOB Regulation No. 23-01 of 21 Ramadan 1444 corresponding to April 12, 2023, fixing the conditions for approval, exercise, and control of participatory investment advisors.
Art. 2 – The participatory investment advisor must take all necessary measures to verify and ensure, in particular:
- the viability of the participatory investment project;
- the competence and integrity of the promoters of the participatory investment project;
- the coherence of the information relating to the participatory investment project, provided by the project promoters.
Art. 3 – This instruction enters into force as of the date of its signature.
Done in Algiers, on November 7, 2023 Youcef BOUZENADA