Regulatory Alerts2023-09-12
Circular No. 04/CREPMF/2022 on the Custodian Contract and Duties
The West African Monetary Union's Regional Council for Public Savings and Financial Markets (CREPMF) issues Circular No. 04/CREPMF/2022 to mandate that licensed Collective Investment Undertakings and their management companies permanently comply with detailed custodian contract requirements and safeguarding obligations. The regulation specifies mandatory contractual clauses covering asset types, custody delegation, confidentiality, information exchange, and anti-money laundering duties, while establishing rigorous monitoring, reconciliation, and ownership verification procedures for liquidity flows and financial instruments. Furthermore, it outlines precise reporting standards for prime brokers and step-by-step intervention protocols to ensure investor protection, risk mitigation, and regulatory transparency across the regional financial market.