Regulatory Alerts2021-04-15
Circular No. 03/EMO/2021, of April 15 - Fundamental Information Document for OTC Derivatives
The Bank of Mozambique issued Circular No. 03/EMO/2021 to mandate a standardized Fundamental Information Document for over-the-counter (OTC) derivatives transactions. The circular requires financial counterparties to disclose essential product characteristics, risk profiles, potential financial losses, default procedures, and complaint mechanisms to ensure market transparency. This regulatory framework, effective April 16, 2021, operationalizes Article 14 of the Un-cleared OTC Derivatives Regulation by establishing the mandatory disclosure model for risk hedging products.
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