Regulatory Alerts2023-09-12
Circular No. 10/CREPMF/2022 on the Calculation of General Expenses for Determining the Equity Level of OPC Management Companies
The General Secretariat of the Regional Council for Public Savings and Financial Markets (CREPMF) issued Circular No. 10/CREPMF/2022 to mandate approved OPC Management Companies in the UMOA region to calculate their required equity levels based on adjusted general expenses. The directive specifies that total operating charges must be reduced by fully discretionary bonuses, product retrocessions, shared commissions, non-recurring expenses, and remuneration paid to linked distribution agents. This calculation method ensures the mandated equity threshold never falls below a specified percentage of the preceding year's adjusted expenses and takes immediate effect upon publication.
WEST AFRICAN MONETARY UNION crepmf REGIONAL COUNCIL FOR PUBLIC SAVINGS AND FINANCIAL MARKETS
CIRCULAR NO. 10/CREPMF/2022
ON THE CALCULATION OF GENERAL EXPENSES FOR DETERMINING THE EQUITY LEVEL OF OPC MANAGEMENT COMPANIES
The General Secretariat of the Regional Council for Public Savings and Financial Markets (CREPMF) reminds approved OPC Management Companies (SGOs) operating in the UMOA regional financial market that, in accordance with current regulations, they must comply with the provisions of this Circular, which specifies the elements defining the determination of general expenses in relation to the equity level of OPC Management Companies, which must never be less than a percentage of said general expenses from the previous year.
The general expenses referred to in Article 5, paragraph 1, point a) iii) of Instruction No. 66/CREPMF/2021 concerning Collective Investment Schemes and their Management Companies on the UMOA regional financial market are determined as follows:
| General Expenses | Amount N | Amount N-1 | |
|---|---|---|---|
| + | Total expenses (operating charges) | ||
| - | Fully discretionary bonuses and variable remuneration | ||
| - | Product retrocessions charged to operating expenses related to the distribution of collective investments | ||
| - | Payable shared commissions and remuneration (linked to receivable commissions and remuneration) | ||
| - | All non-recurring expenses resulting from non-ordinary activities | ||
| - | Remuneration paid to linked agents in the context of OPC distribution |
This Circular takes effect from its publication date.
Done in Abidjan on 03 JAN 2022
The General Secretary Ripert BOSSOUKPE
Avenue Joseph ANOMA 01 B.P. 1878 Abidjan 01/Côte d'Ivoire Website : http://www.crepmf.org 1 TEL.: (225) 20 27 21 57 / 20 27 51 56 20 Fax: (225) 27 20 33 23 04 Email : sg@crepmf.org