Instruction No. 50/2016 on the Procedure for Handling Complaints and/or Claims in the UMOA Regional Financial Market

UNION MONETAIRE OUEST AFRICAINE

crepmf

CONSEIL REGIONAL DE L'EPARGNE PUBLIQUE ET DES MARCHES FINANCIERS

INSTRUCTION N° 50/2016

ON THE PROCEDURE FOR HANDLING COMPLAINTS AND/OR CLAIMS IN THE UMOA REGIONAL FINANCIAL MARKET

The Regional Council for Public Savings and Financial Markets,

Having regard to the Convention of July 3, 1996 establishing the Regional Council for Public Savings and Financial Markets (hereinafter "the Council");

Having regard to the Annex to the Convention on the composition, organization, functioning and powers of the Council, particularly Articles 22 and 23;

Having regard to the General Regulations on the Organization, Functioning and Supervision of the UMOA Regional Financial Market, Articles 188 to 190;

Having regard to Decision No. CM/12/03/2013 of March 22, 2013 by the UMOA Council of Ministers appointing the President of the Regional Council;

Having regard to the resolutions of the Regional Council at its session on November 14, 2016;

HEREBY ADOPTS

Avenue Joseph ANOMA 01 B.P.: 1878 Abidjan 01/Côte d'Ivoire TEL.: (225) 20215742/20215179 Fax: 20221657 presidence@crepmf.org www.crepmf.org

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Instruction No. 50/2016

Article 1: Scope of Application

This Instruction aims to describe the procedure for handling complaints and/or claims, initiated by any interested parties, regarding faults, omissions or detrimental practices affecting their rights and the regular functioning of the regional financial market, which may be committed by all professionals operating on the regional financial market, in particular management companies, authorized commercial intermediaries, and Issuers, within the framework of compliance with their obligations regarding public savings offerings.

Article 2: Definition of Complaint and/or Claim, and the Professional's Obligation to Inform Clients Regarding Filing Procedures and Access to the Complaint/Claim Handling System

A complaint and/or claim is understood as a statement expressing the client's dissatisfaction with the professional due to faults, omissions or detrimental practices affecting their rights and/or the regular functioning of the regional financial market, in order to obtain redress or restoration of said rights.

A request for information, advice, or clarification does not constitute a complaint and/or claim. The professional must provide the client free of charge, in clear and understandable language, information on:

• the filing procedures, and where applicable, each level of complaint/claim handling established, including contact details (address, toll-free telephone number...) of the designated person(s) or body responsible for handling complaints or claims;
• the processing timeframes for the complaint or claim to which the professional commits.

When multiple intermediaries are involved in service delivery, this information is broken down for each category of complaints or claims requiring a distinct handling process.

Article 3: Different Stages of the Complaint/Claim Handling Procedure

The handling of complaints and/or claims comprises the following three (3) stages:

• The first stage, within the professional's organization;
• The second stage, within the professional associations;
• The third stage, with the Regional Council for Public Savings and Financial Markets, acting as mediator or conciliator.

Avenue Joseph ANOMA 01 B.P.: 1878 Abidjan 01/Côte d'Ivoire TEL.: (225) 20215742/20215179 Fax: 20221657 presidence@crepmf.org www.crepmf.org 2/6

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Instruction No. 50/2016

Article 4: The First Stage of Handling Complaints and/or Claims, Within the Professional's Organization

Within the professional's organization, constituted by central structures (BRVM and DC/BR), commercial intermediaries (Management and Intermediation Companies, Wealth Management Companies, Securities Collective Investment Scheme Management Companies (OPCVM), OPCVMs (Common Investment Funds, Variable Capital Investment Companies), canvassers, business introducers, Stock Market Investment Advisors, Account-Keeping Banks, a person will be designated as responsible for handling complaints and/or claims, who may be the compliance or internal control manager, or others.

Complaints and/or claims received according to each professional's internal organization, by any means of filing that justify their date, must be processed within a maximum timeframe of ten (10) working days from receipt, and must concern events occurring within a maximum period of one year.

The professional responds to the client's information requests regarding the progress of their complaint or claim handling. They keep the client informed within the indicated timeframe.

In case of rejection or partial/full refusal, the professional specifies in the response to the client the possible avenues for appeal, including the existence and contact details of the higher-level entity.

Since access to the complaint/claim handling mechanism is free of charge, no specific fees may be charged to the client for the handling of their complaint and/or claim.

The professional must have the means and procedures to identify letters, telephone calls, and emails that constitute complaints or claims, and define the handling circuits for them.

The professional must establish an organization for handling complaints and/or claims, particularly regarding the signing of letters or commercial gestures, the client's name, the date of receipt of the complaint/claim, the subject matter, the contract, product or service concerned, other intermediaries involved, the department or service targeted, the date of response to the client, the response provided (positive or negative), and identified malfunctions.

They must ensure that the collaborator(s) in contact with the client or receiving their requests have training enabling them to clearly identify received complaints or claims and appropriately use the complaint/claim handling circuit(s).

Avenue Joseph ANOMA 01 B.P.: 1878 Abidjan 01/Côte d'Ivoire TEL.: (225) 20215742/20215179 Fax: 20221657 presidence@crepmf.org www.crepmf.org 3/6

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Instruction No. 50/2016

In the absence of a response within ten (10) working days from receipt of the client's complaint or claim, or in case of client dissatisfaction, the client is informed (by the professional themselves if dissatisfied) of the possibility to file with the professional associations to which the professional is affiliated, within ten (10) working days after the expiration of the initial ten (10) day period without a response from the professional, or upon notification of the professional's response.

Article 5: The Second Stage of Handling Complaints and/or Claims, Within Professional Associations

Professional associations operating on the regional financial market, in particular the Professional Association of Management and Intermediation Companies (APSGI) and the Professional Association of Account-Keeping Banks (APBCTC), constitute the second stage for handling complaints or claims, in case of client dissatisfaction after passing through the first stage.

Professional associations have a timeframe of twenty (20) working days from receipt of the appeal to address their response to the client.

Professional associations, like professionals, must establish a complaint/claim handling organization, particularly regarding the signing of letters or commercial gestures, client name, receipt date, subject matter, contract/product/service concerned, other intermediaries, targeted department/service, response date, response provided (positive/negative), and identified malfunctions.

Professional associations, like professionals, must formalize this organization in one or more complaint/claim handling procedures and communicate it to all relevant collaborators.

In the absence of a response within twenty (20) working days from receipt of the client's complaint/claim, or in case of dissatisfaction, the client is informed (by the professional association itself if dissatisfied) of the possibility to file with the Regional Council, acting as mediator or conciliator, within ten (10) working days after the expiration of the twenty (20) day period without a response from the professional, or upon notification of the association's response.

Avenue Joseph ANOMA 01 B.P.: 1878 Abidjan 01/Côte d'Ivoire TEL.: (225) 20215742/20215179 Fax: 20221657 presidence@crepmf.org www.crepmf.org 4/6

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Instruction No. 50/2016

Article 6: The Third Stage, The Regional Council for Public Savings and Financial Markets, Mediator, Conciliator

The Regional Council, filed within the aforementioned timeframe, has a three-month period to rule on the complaint and/or claim emanating from the client, acting either as Mediator or Conciliator, depending on the nature of the filing.

When the Regional Council rules on a client's complaint/claim against an actor of the Financial Market, it acts as Mediator.

In this case, the Regional Council will designate a delegated mediator among its members, responsible for processing the file and submitting a draft recommendation to the Council, which, once validated by it, will propose the recommendation to the conflicting parties.

When the Regional Council rules on a complaint/claim by an actor of the Financial Market against another actor who also holds client status, it acts as Conciliator.

The Regional Council will designate a delegated conciliator among its members responsible for facilitating rapprochement between the conflicting parties, and submitting an mission report to the Council, which will either confirm conflict resolution through rapprochement or note conciliation failure.

Recourse to the Regional Council constitutes the final stage of complaint/claim handling. In case of dissatisfaction in conciliation or mediation, any diligent party may either resort to arbitration or initiate judicial proceedings before the competent court.

Article 7: Monitoring and Supervision of Complaint/Claim Handling - Incorporation of Identified Malfunctions through Claims

The professional is required:

• to implement monitoring of complaints and/or claims and provide reports to the relevant services/personnel of the professional, and where applicable, to the bodies defining the commercial policy of the network to which the professional belongs or to persons acting on their behalf;
• to identify malfunctions in order to implement corrective actions at the professional level and, where applicable, at the network or acting persons' level.

Professionals required to have a compliance and internal control system must:

• implement the necessary means and procedures to ensure appropriate control over information provided, organization, and quality of complaint/claim handling;

Avenue Joseph ANOMA 01 B.P.: 1878 Abidjan 01/Côte d'Ivoire TEL.: (225) 20215742/20215179 Fax: 20221657 presidence@crepmf.org www.crepmf.org 5/6

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Instruction No. 50/2016

• take into account and control risks borne by clients that may be caused by identified malfunctions through complaints or claims;
• report in the annual compliance and internal control report on identified malfunctions through claims and indicate whether measures have been taken.

Article 8: Entry into Force

This Instruction shall enter into force on the date of its signature and will be published wherever necessary.

Done at Abidjan, on November 23, 2016

THE PRESIDENT

(Signature)

Jeremias PEREIRA

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