Regulatory Alerts2003-12-21
Instruction COSOB No. 03-04 of December 21, 2003, on the Model Mandate for the Administration of Registered Securities
The COSOB issued Instruction No. 03-04 on December 21, 2003, to define the standard model for the mandate of administration of registered securities between a securities account-keeper and the holder. This instruction mandates the use of the attached model contract, which authorizes the financial intermediary to perform administrative acts such as collecting income while requiring specific instructions for disposal acts like exercising capital increase rights. The mandate is effective upon signature and can be terminated by either party at any time without notice via registered letter, with the intermediary assuming responsibility for order identity and operational regularity.
Instruction COSOB No. 03-04 of December 21, 2003, on the Model Mandate for the Administration of Registered Securities
Article 1. — In application of COSOB Regulation No. 03-02 of March 18, 2003, relating to the maintenance of securities conservation accounts, particularly its Article 18, the purpose of this instruction is to define the model of the mandate for the administration of registered securities to be concluded by a securities account-keeper and a holder of registered securities who entrusts its administration to them.
Art. 2. — The model of the mandate for the administration of registered securities is attached to this instruction and forms an integral part of it.
Art. 3. — This instruction enters into force on the date of its signature.
Done in Algiers on, December 21, 2003.
The President Ali SADMI
ANNEX
MODEL OF MANDATE FOR THE ADMINISTRATION OF REGISTERED SECURITIES
Between the undersigned:
Name and first name(s) of the holder residing at ………………………..………………………………………………………………… The authorized financial intermediary
It has been agreed as follows, in application of the provisions of Article 18 of COSOB Regulation No. 03-02 of March 18, 2003, relating to the maintenance of securities conservation accounts.
Article 1. — The signatory or signatories of this contract grant(s) a mandate to the authorized intermediary, who accepts it, to administer the portfolio of registered securities listed in accounts with the issuers and reproduced under account number………………………
Art. 2. — The following administrative acts are authorized for the agent within the framework of this contract, notably the collection of income.
Conversely, disposal acts, notably the exercise of rights regarding capital increases, securities settlements, or cash settlements, are carried out upon specific instructions from the signatory or signatories. The authorized intermediary may claim the tacit acceptance of the principal for certain operations, in accordance with current practices at the account-keeper.
Art. 3. — All orders relating to the administered securities may only be given by the signatory or signatories to the mandated intermediary, in accordance with current regulatory provisions.
Under these conditions, the authorized intermediary assumes responsibility for the identity and capacity of the order giver, as well as for the regularity of the operation, with the issuer then being released from any responsibility.
COSOB Regulation Instruction No. 03-04
Art. 4. — The authorized intermediary shall notify the signatory of said contract of operations that have affected the account.
Account statements will be sent at least annually.
In the case where the administration account is opened in the name of several holders, operation notices and account statements will be sent to the first holder or to the agent.
Art. 5. — The administration mandate may be denounced at any time and without any notice period by either party, by registered letter with acknowledgment of receipt.
Done at………… on,
For the authorized intermediary For the holder(s)
NB: Signatures must be preceded by the handwritten mention "read and approved"
COSOB Regulation Instruction No. 03-04