Instruction No. 19/99 on the Management Mandate Contract for Listed Securities

WEST AFRICAN MONETARY UNION
REGIONAL COUNCIL FOR PUBLIC SAVINGS AND FINANCIAL MARKETS

INSTRUCTION NO. 19/99 ON THE MANAGEMENT MANDATE CONTRACT FOR LISTED SECURITIES

Having regard to the Convention of July 3, 1996 establishing the Regional Council for Public Savings and Financial Markets, hereinafter referred to as the Regional Council,

Having regard to the General Regulation relating to the Organization, Operation and Control of the Regional Financial Market of the UMOA, hereinafter referred to as the General Regulation, adopted by decision No. 001/97 of the Council of Ministers of November 28, 1997,

Having regard to Articles 38 and 60 of the said General Regulation,

Having regard to the decision of the Regional Council in its session of July 2, 1999,

THE REGIONAL COUNCIL DECIDES:

Article 1
The management mandate for listed securities exercised by Asset Management Companies, Intermediary Management Companies, and banks approved by the Regional Council in their capacity as account keepers and clearing houses must necessarily be the subject of a written contract.

Article 2
The contract must contain the following mandatory mentions:

1) Information concerning the parties to the contract:

• The identity and address of the parties to the contract,
• The liability of the contracting parties.

2) Information concerning the management mandate:

• The objectives of the management mandate (security, profitability),
• The characteristics of the management,
• The means of transmitting instructions (telephone, fax, telex),
• The notification of the mandate,
• The conditions for the validity of the contract,
• The conditions for the termination of the management mandate,
• The jurisdiction clause,
• The date and place of signing the contract,
• Management fees.

Article 3
The management mandate contract for listed securities must necessarily bear the signature of the principal and the agent.

Article 4
Intermediary Management Companies, Asset Management Companies, and banks approved by the Regional Council to carry out account keeping and clearing activities must manage the mandates entrusted to them in the interest of their clients.

Article 5
This Instruction shall be published wherever necessary.

Done in Abidjan, on July 2, 1999

For the Regional Council
The President
L. NAKA
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