Instruction No. 32/2005 on the Withdrawal of Approval for Approved Market Participants by the UMOA Regional Council of Public Savings and Financial Markets

Regional Council of Public Savings and Financial Markets West African Monetary Union

INSTRUCTION NO. 32/2005
ON THE PROCEDURE FOR WITHDRAWAL OF APPROVAL FOR APPOINTED MARKET PARTICIPANTS APPROVED BY THE REGIONAL COUNCIL OF PUBLIC SAVINGS AND FINANCIAL MARKETS OF THE UMOA

The Regional Council of Public Savings and Financial Markets,

the Convention of July 3, 1996 establishing the Regional Council of Public Savings and Financial Markets and its Annex;

Decision No. 001/97 of the Council of Ministers dated November 28, 1997 establishing the General Regulation on the Organization, Operation, and Supervision of the Regional Financial Market of the UMOA;

Decision No. CM/14/09/2003 dated September 11, 2003 by the Council of Ministers of the UMOA appointing the President of the Regional Council of Public Savings and Financial Markets;

Decision of the Regional Council during its ordinary session on September 14, 2005;

HAS DECIDED AS FOLLOWS:

Article 1
In accordance with the provisions of Article 35 of the Annex to the Convention, the Regional Council of Public Savings and Financial Markets withdraws the approval of a market participant when that participant:

• fails to exercise its approval within twelve (12) months from the date of grant,
• has committed serious breaches of the regional financial market regulations,
• no longer meets the conditions required for approval,
• submits a reasoned request.

Article 2
The withdrawal of approval is notified to the market participant by registered letter with acknowledgment of receipt or by messenger.

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Article 3:
Upon notification by the Regional Council of Public Savings and Financial Markets of the withdrawal of approval to the market participant, it is prohibited from carrying out operations on its clients' portfolios or shares, except for those related to liquidation.

Article 4:
The Regional Council informs the public of the withdrawal of approval through publication in the Official Stock Bulletin (BOC) or by any other means.

Article 5:
The market participant must liquidate activities related to the approval within a maximum period of six (06) months from the date of notification of the withdrawal decision, following the procedure below:

1. submit to the Regional Council within one (01) month a statement of activities related to the approval and a clearance plan certified by the Statutory Auditor (for legal entities) for assessment and approval;
2. regularize all pending operations with all approved structures of the regional financial market;
3. terminate all contracts and commitments signed within the framework of activities related to the approval with any interested natural or legal person;
4. notify its clients in writing, either to request the transfer of their accounts to another authorized market participant, or to request the liquidation of their portfolios;
5. submit to the Regional Council at the end of the clearance operation a comprehensive and final report, certified by the Statutory Auditor (for legal entities).

Beyond the six (06) month period, if activities related to the approval are not cleared, the Regional Council designates an authorized market participant to continue or liquidate them.

Article 6:
When approval is withdrawn from a Management Company, the Depositories of collective investment funds (OPCVM) managed by it must designate another Management Company within a maximum period of one (01) month from the date of notification of the withdrawal decision.

Article 7:
Regarding collective investment funds (OPCVM), their Depositories must liquidate their assets within a maximum period of three (03) months from the date of notification of the withdrawal decision.

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Article 8:
Regarding natural person market participants, they must return their currently valid professional cards to the Regional Council of Public Savings and Financial Markets within a maximum period of one (01) month following the notification of the withdrawal decision.

Article 9:
In cases of bankruptcy, incapacity, death, or dissolution of a market participant, the Regional Council of Public Savings and Financial Markets designates another authorized market participant to handle routine affairs managed on behalf of clients, in order to safeguard the interests of said clients and the market.

Article 10:
In cases of absorption merger between two or more market participants, the approval of the absorbed participant(s) is automatically extinguished upon completion of the legal formalities of the absorption operation.

The absorbed participant(s) must submit a request for withdrawal of approval to the Regional Council of Public Savings and Financial Markets.

Article 11:
This Instruction, which enters into force from its date of signature, shall be published wherever necessary.

Done in Ouagadougou, on September 14, 2005 in two original copies

The President

(Signature)

Martin N. GBEDEY