Instruction No. 20/99 on the Securities Account Agreement

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

INSTRUCTION NO. 20/99 RELATING TO THE
SECURITIES ACCOUNT AGREEMENT

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

Having regard to Articles 18 and 22 of the Annex to said Convention,

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

Having regard to Articles 140 to 144 of said General Regulations,

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

THE REGIONAL COUNCIL DECIDES:

Article 1
The opening of a securities account by Management and Intermediation Companies, banks authorized by the Council as account keepers and clearing houses, or any other body authorized by the Regional Council must necessarily be the subject of an account agreement concluded between this company and its client.

Article 2
The Securities Account Agreement must specify the following mandatory details:

1) Details concerning the parties to the agreement:

• The identity and address of the parties to the contract,
• The confidentiality incumbent upon the account management company,
• The liability of the parties to said agreement,
• The applicable law,
• The election of domicile,
• The mandatory signature of the agreement by the account management company and the account holder.

2) Details relating to the securities and securities accounts:

• The form and nature of the securities registered in the account,
• The availability of securities upon first request,
• The fiscal obligations relating to the securities registered in the account,
• The obligation to communicate tariffs,
• The transmission of a copy of the securities management mandate contract, if it concerns delegated management,
• The operating conditions of joint accounts,
• The conditions for closing the securities account,
• The conditions for terminating the agreement.

3) Details relating to orders and their execution:

• The periodicity of the securities account statement,
• The conditions for executing stock exchange operations:
• Transmission and receipt of instructions, prior provision,
• Information regarding the execution of instructions,
• The processing of income from registered securities.

Article 3
Any modification in the operation of the account must be the subject of prior notification by one of the parties, by registered letter with acknowledgment of receipt from one of the parties.

Article 4
Companies must manage the securities account agreement 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