Regulatory Alerts2023-08-24
Instruction No. 3/97 on the Approval of the Central Depository and Settlement Bank
The Regional Council for Public Savings and Financial Markets of the West African Monetary Union issues Instruction No. 3/97 to formally approve Central Depository and Settlement Banks, authorizing them to conduct book-entry securities conservation, manage settlement and delivery cycles, and settle stock market compensation balances across all member states. The approval process requires applicants to submit certified articles of incorporation, capital distribution details, governing body compositions, executive officer lists with criminal records, and descriptions of technical and human resources. Furthermore, the authorization is contingent upon payment of a regulatory fee fixed by the Council and requires publication of an official notice in the stock exchange bulletin.
WEST AFRICAN MONETARY UNION REGIONAL COUNCIL FOR PUBLIC SAVINGS AND FINANCIAL MARKETS
INSTRUCTION NO. 3/97 ON THE APPROVAL OF THE CENTRAL DEPOSITORY/SETTLEMENT BANK
Whereas the Convention of July 3, 1996 establishing the Regional Council for Public Savings and Financial Markets, hereinafter referred to as the Regional Council; Whereas Article 21 of said Convention, Whereas Decision No. 001/97 of the Council of Ministers of the West African Monetary Union in its session on November 28, 1997 adopting the General Regulations concerning the Organization, Operation and Supervision of the regional financial market of the UMOA, hereinafter referred to as the General Regulations; Whereas Articles 12 to 16 and 20 to 22 of said General Regulations, Whereas the decision of the Regional Council in its session on November 29, 1997, The Regional Council hereby resolves:
Article 1: The Central Depository/Settlement Bank is authorized, upon its approval by the Regional Council, to carry out, throughout the territory of the Member States of the Union, the following activities: book-entry conservation and circulation of securities, management of the settlement/delivery cycle, and settlement of balances from compensations related to stock market transactions.
Article 2: The approval application submitted to the Regional Council must include the following documents: a) the articles of incorporation of the company, which must be established under the legal form of a public limited company and have its registered office in one of the Member States of the West African Monetary Union; b) the amount and distribution of its share capital and the identity of its shareholders; c) the composition of its governing bodies; d) the list of executive officers and their criminal records; e) the description of the technical and human resources available to the company.
Article 3: The approval granted to the Central Depository/Settlement Bank is subject to the payment of a fee, the amount of which is fixed by instruction of the Regional Council.
Article 4: The approval of the Central Depository/Settlement Bank is subject to a notice published in the official listing bulletin.
Done at Ouagadougou, on November 29, 1997 For the Regional Council The President L. NAKA 2