Mandate Management: The AMMC Publishes a Guide for Public Consultation

According to the AMMC, this guide aims to present recommendations and best practices governing mandate management activities. This initiative comes in response to the growing trend of individual portfolio management in Morocco and the current absence of specific regulations dedicated to this activity. Mandate management, also known as individual or discretionary management, involves an investor delegating the management of their portfolio of financial instruments to a professional. This is done through a written management mandate that outlines investment objectives, acceptable risk levels, authorized instruments, and reporting methods. The guide specifies the minimum information that must be included in a management mandate. This includes the identities of the parties involved, the purpose and scope of the powers granted to the manager, the investment policy, associated risks, fees and commissions, as well as client information procedures, with reporting intervals not exceeding three months. Additionally, the document provides recommendations regarding the human, technical, and organizational resources that managers should implement to carry out this activity effectively. It emphasizes the qualifications of personnel, the establishment of an internal control system, the adoption of written procedures, and adherence to ethical rules, particularly concerning the prevention of conflicts of interest and equitable treatment of clients. To protect the savings invested in the capital markets, the guide is directed at both mandate managers and investors. Investors are encouraged to ensure clarity in the mandate, understand the fee levels, review the planned information procedures, and assess the risk management systems in place before signing any agreements. The AMMC reminds stakeholders that this guide is not regulatory or mandatory but serves as a living document that may be updated in response to future regulatory developments. Market participants and professionals are invited to submit their remarks and comments during this public consultation to the following address: [email protected].