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 ON ASSETS MANAGED BY COLLECTIVE INVESTMENT SCHEMES IN SECURITIES

Whereas the Convention of July 3, 1996 establishing the Regional Council for Public Savings and Financial Markets (hereinafter "the Regional Council"), Whereas Articles 18, 19 and 20 of the Annex to said Convention, Whereas the General Regulation on the Organization, Operation and Supervision of the Regional Financial Market of the UMOA, adopted by Decision No. 001/97 of the Council of Ministers on November 28, 1997, Whereas Articles 72 to 89 of said General Regulation, Whereas the decision of the Regional Council in its session on July 2, 1999, THE REGIONAL COUNCIL HEREBY RESOLVES:

Article 1
The assets of a Collective Investment Scheme in Securities (CIS) may consist solely of cash, securities, and negotiable debt instruments issued within UMOA countries. By way of derogation from the above principle, 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 permanently constitute at least 85% of securities that have been subject to a public offering or admitted to the listing of the Regional Securities Exchange.

Article 3
The assets of CIS must be held by a single depositary chosen from legal entities authorized by the Regional Council to perform custodian and clearing activities.

Article 4:
Any Variable Capital Investment Company, Common Collective Investment Fund in Securities, or any other form of CIS approved by the Regional Council may invest no more than 10% of its assets in securities issued by a single issuer, unless such securities are issued or guaranteed by states of the West African Monetary Union (UMOA). In the case of securities issued or guaranteed by UMOA states, the aforementioned ceiling may be increased to 15%.

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

Article 6:
Collective Investment Schemes in Securities are required to make public, within 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 relevant quarter, certified by an auditor approved by the Regional Council. After this period, any person making a request has the right to access this document at the registered office of the Collective Investment Scheme in Securities or its management company.

Article 7:
Within thirty days at the latest following the General Assembly meeting that approves the accounts, Variable Capital Investment Companies and management companies are required to publish their balance sheet, income statement, and detailed composition of assets as of the balance sheet date, which must be the last trading day of the relevant fiscal year.

Article 9:
This Instruction shall be published wherever necessary.

Done at Abidjan, on July 2, 1999
For the Regional Council
The President
L. NAKA