Regulatory Alerts2003-01-01
COSOB Regulation No. 03-02 of March 18, 2003, Relating to the Maintenance of Securities Custody Accounts
The Algerian Commission for the Organization and Supervision of Stock Market Operations (COSOB) issued Regulation No. 03-02 to establish the licensing requirements and operational rules for entities maintaining securities custody accounts. The regulation mandates that banks, financial institutions, and stock market intermediaries obtain specific authorization and adhere to strict standards regarding internal controls, accounting practices, and client identity verification. It further defines the fiduciary duties of custodians, including the obligation to safeguard assets, execute instructions solely based on client orders, and provide regular reporting on account movements and holdings.
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