Without prejudice to the criminal penalties provided for in Article 35 of the law (Law No. 99/015 of 22 December 1999), investment service providers are subject to administrative sanctions for breaches of their professional obligations consisting of:
• Distorting the functioning of the market;
• Providing an unjustified advantage to persons who would not have obtained it under normal market conditions;
• Undermining the equality of information and treatment of investors or their interests;
• Allowing issuers and investors to benefit from practices contrary to their obligations.
The sanctions incurred are as follows:
• A warning;
• A reprimand;
• Suspension, for a period not exceeding one year, of all or part of the investment services, with the exception of transactions strictly necessary to protect the interests of clients;
• Withdrawal of authorization.
The suspension and withdrawal of authorization are notified to the investment services provider and published in a legal notices journal.
The Commission's decisions are subject to appeal before the Administrative Chamber of the Supreme Court.
The Commission may also withdraw the authorization of an investment services provider, either on its own initiative or at the request of the investment services provider, when the provider:
• No longer meets the conditions to which the authorization is subject;
• Has not used its authorization within twelve months;
• Has not been conducting business for at least six months.
The withdrawal of authorization takes effect upon the expiration of a period determined by the Commission. During this period, the securities investment firm:
• Remains subject to the Commission's supervision;
• May only carry out operations strictly necessary for the fulfilment of its investment services and the protection of its clients' interests;
• May only refer to itself as an investment service provider by specifying that its authorization is being withdrawn.
These obligations also apply to credit institutions with regard to the investment services for which they have been authorized.
The Commission shall specify the conditions for the application of this article by regulation.
Is liable to a fine of 500,000 to 5,000,000 CFA francs any natural or legal person who:
• Commits one of the practices defined in Article 32 of the law;
• Provides investment services to third parties as a regular business activity without being authorized to do so;
• Conducts trading or exchanges other than those provided for in this Act in securities admitted to trading on a market, without using an investment service provider;
Insider trading constitutes an offense punishable by imprisonment for six (6) months to two (2) years and a fine of one (1) to ten (10,000,000) CFA francs:
• For managers of a commercial or industrial company and for persons who, in the course of their profession or functions, possess privileged information about the situation or prospects of an issuer whose securities are traded on the market, knowingly carry out or allow to be carried out, directly or indirectly, one or more transactions before the public becomes aware of this information and with the aim of making an undue profit;
• Any person who, in the course of their profession or duties, possesses privileged information about the situation or prospects of an issuer whose securities are traded on a market, and who communicates this information to a third party outside the normal scope of their profession or duties with the aim of making an undue profit, is liable to imprisonment for six (6) months to two (2) years and a fine of one (1) million to ten million (10,000,000) CFA francs, or one of these two penalties only.