Regulatory Alerts2023-08-24
Instruction No. 06 CREPMF/2021 on Minimum Share Capital and Prudential Standards for Approved Management and Intermediation Companies on the UMOA Regional Financial Market
The Regional Council for Public Savings and Financial Markets (CREPMF) of the West African Monetary Union (UMOA) has issued Instruction No. 06 CREPMF/2021 to establish a minimum share capital of one billion FCFA and comprehensive prudential standards for approved Management and Intermediation Companies (MICs). The regulation mandates that MICs maintain Net Regulatory Equity calculated against fixed overhead costs, custody assets, and primary market activities, while requiring at least 25% of equity to be invested in high-quality liquid assets subject to strict diversification and leverage limits. Furthermore, it imposes a robust internal control framework, standardized quarterly and annual prudential reporting, and strict penalties for non-compliance, with existing firms granted a one-year transition period and new entrants required to comply immediately upon the instruction's January 1, 2022 effective date.