Instruction No. 23/99 on Assets Managed by Collective Investment Schemes in Securities

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

INSTRUCTION NO. 23/99 RELATING TO ASSETS MANAGED BY COLLECTIVE INVESTMENT SCHEMES IN 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 Articles 18, 19 and 20 of the Annex to the said Convention,

Having regard to the General Regulation relating to the Organization, Operation and Control of the regional financial market of the UMOA, adopted by Decision No. 001/97 of the Council of Ministers of November 28, 1997,

Having regard to Articles 72 to 89 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 assets of a Collective Investment Scheme in Securities (OPCVM) may only consist of cash, securities and negotiable debt instruments issued in the countries of the UMOA.

By way of derogation from the principle stated above, the Regional Council may authorize investments in other securities or other negotiable debt instruments issued outside the Union.

Article 2
The assets of a Variable Capital Investment Company, a Common Investment Fund or any other form of Collective Investment Scheme in Securities approved by the Regional Council must be constituted permanently and to the extent of at least 85% by securities that have been the subject of a public offering or admitted to the listing of the Regional Securities Exchange.

Article 3
The assets of OPCVMs must be held by a single depositary chosen from among the legal persons authorized by the Regional Council to exercise the activities of account keeper and clearing house.

Article 4:
Any Variable Capital Investment Company, any Common Collective Investment Fund in Securities or any other form of Collective Investment Scheme in Securities approved by the Regional Council may not employ more than 10% of its assets in securities issued by the same issuer, unless they are securities issued or guaranteed by the States of the West African Monetary Union (UMOA).

In the case of securities issued or guaranteed by the States of the West African Monetary Union, the above ceiling may be increased to 15%.

Article 5:
Investments in mortgage-backed securities managed may not exceed 5% of the assets employed.

Article 6:
Collective Investment Schemes in Securities are required to make public, within a period of thirty days from the end of each quarter of the fiscal year, the detailed composition of their assets as of the last trading day of the quarter in question, certified by an auditor approved by the Regional Council.

After this period has expired, any person who requests it has the right to access this document at the registered office of the Collective Investment Scheme in Securities or the management company.

Article 7:
Thirty days at the latest after the meeting of the General Assembly which must approve the accounts, Variable Capital Investment Companies and management companies are required to publish their balance sheet, income statement and the detailed composition of their assets as of the date of the balance sheet closing, which must be the last trading day of the fiscal year in question.

Article 9:
This Instruction shall be published wherever necessary.

Done in Abidjan, on July 2, 1999

For the Regional Council
The President
L. NAKA