Regulatory Alerts2006-05-08
Decree No. 2006-1294 of May 8, 2006, implementing the provisions of Article 23 of Law No. 2005-96 of October 18, 2005 on strengthening the security of financial relations
The Tunisian President, acting on the proposal of the Minister of Finance, issued Decree No. 2006-1294 to implement Article 23 of Law No. 2005-96 by establishing a minimum capital of 100,000 dinars for portfolio management companies and requiring them to maintain capital equal to at least 0.5% of managed assets until reaching 500,000 dinars. The decree mandates that the Financial Market Council grant approvals based on submitted applications and activity plans within one month, while subjecting mergers, demergers, and controlling capital acquisitions to prior regulatory approval. Furthermore, it disqualifies individuals with final convictions for financial crimes or bankruptcy from managing these companies and requires the safeguarding of client securities and cash with licensed banks, alongside the appointment of a compliance officer.