Country Manual Products – Morocco – BRP Update 2024
BRP has updated its Country Manual Products for Morocco
| Source of changes | Answers |
|---|---|
| Law / Regulation | Yes |
| New Position of the Authorities | No |
| Evolution of Expert’s Interpretation | Yes |
Definitions & Concepts, Regulatory Overview and Behaviour Template
The Country Manual has been reviewed to ensure that the content of all the documents remains accurate and up to date.
Regulatory changes
Since the last version of our Country Manual, we have added the following legal bases to the list of the applicable legal framework:
- Law 19-14 of 25 August 2016 (replacing Law 1-93-211 of 21 September 1993);
- Law 44-12 of 28 December 2012 (replacing Law 1-93-212 of 21 September 1993);
- Circular of the Moroccan Capital Market Authority (AMMC) No. 03/19 (replacing Part III of AMMC Circular, edition of 1 October 2014); and
- Arrêté No. 103-18 of 4 January 2018 (replacing Art. 12-3 of Law 1-93-212 of 21 September 1993).
Material changes
The changes/modifications are as follows:
- In alignment with the Country Manual Private Banking (CM PB), the provision of macroeconomic information/reports and Investment research and Financial analysis documents/reports is now only permitted onshore in Morocco (at target) and via remote means of communication into Morocco (remote) on a one-to-one and occasional basis;
- It is highlighted that any provision of execution only services by foreign (unlicensed) service providers onshore in Morocco (at target) and via remote means of communication into Morocco (remote) triggers local licensing requirements. It is therefore now only permitted to accept unsolicited client orders in the relevant scenarios if they are passed to the service provider’s country of establishment for execution (except for local Securities which are listed on the Casablanca Stock Exchange as there is a monopoly for locally licensed brokerage firms). Accordingly, the Country Manual Behaviour Template (CM P BT) provides the answers “Grey zone” (at target) and “Grey zone/YES – Except for Securities listed in the country. Provided orders are passed to the service provider’s country of establishment for execution” (remote);
- In further alignment with the CM PB, the provision of investment advice and product related marketing activities are now only permitted within the framework of a written “advisory agreement” and via remote means of communication into Morocco (remote) (onshore in Morocco (at target) remains a “Grey zone”);
- Please note that, based on guidance from our local counsel, the provision of investment advice based on a written “advisory agreement” requested by the investor and covering the relevant financial services/products (this latter condition has been added), which does not trigger the “local distribution rules”, remains an unofficial “current market practice”. This view has not been officially recognized in Morocco and may only be seen as an interpretation of the local laws and regulations which may change without prior notice depending on future court decisions and/or official statements of the local authorities. Accordingly, a “cautious approach” is recommended based on an analysis of the circumstances and all the potential risks in relation to each specific business model.
Non-material changes
Some other comments and contents have been redrafted in the Country Manual without introducing substansive changes to better reflect the evolving interpretation of the regulatory framework (e.g. in relation to the locally applicable Private Placement Regime).
For more information, please contact us: info@brpsa.com
Geneva, February 16th, 2024