Acting as the financial market authority, the CDVM was established by “Dahir”, (Royal Decree) establishing Law No. 1-93-212 and aims to:
To fulfill its mission, CDVM is empowered to the following:
Through circulars, the CDVM sets rules of professional practices, ethical codes and technical and practical applications of laws and regulations. The process of drawing up circulars is conducted in cooperation with professionals and relies on best practices with regard to international standards in regulating securities markets. The circulars complete the law, decrees and orders by setting clear and detailed rules. The circulars shall unify the practices; clarify the market regulations and explain the rights and obligations of all.
As appropriate, the CDVM approves collective investment products or formulate recommendations in their regard and approves prospectuses intended for investors. The products concerned are: UCITS, CIF on securitization and in venture capital.
This prerogative enables CDVM to secure investments by ensuring compliance with legal and regulatory requirements relating to products and investors’ information and to verify the ability of professionals to manage those products.
Stakeholders subject to approval application procedure are brokerage firms, Securitization Trust and Venture Capital Funds management companies. CDVM examines the applications and sends a recommendation to the Ministry of Finance that accepts or rejects the application. CDVM verifies that the professionals who have requested approval offer sufficient guarantees, particularly with regard to their organization, technical and financial capabilities and management experience.
The CDVM approves financial transactions prospectuses of issuers concerning public offerings, Buyback programs, after reviewing the adequacy and consistency of information for investors. The objective is to ensure that investors have all the relevant information to make informed decisions. The approved prospectuses by CDVM are freely available to the public prior to the transaction
The objective of this control is to ensure that investors receive regular information about issuers. Thus, the CDVM ensures that issuers meet their obligations to publish annual, semiannual, and quarterly financial statements and disclose all material information that may affect the share price of their securities or affect the savings of Securities holders.
It ensures that information is concise, truthful, accurate and disclosed on a timely basis to the entire financial community.
Professionals subject to CDVM control are the brokerage firms, the stock exchange, the account holders, the central depository and the management companies.
This control comes in two complementary ways: On-site control, through inspections conducted in the premises of the intermediaries, and document control, through reportings whose content and frequency are fixed by the CDVM.
The main purpose of this control is to ensure that professionals have permanently adequate safeguards, particularly with regard to organization, technical, financial and human resources and to verify that the conditions for delivering Application approval are maintained.
CDVM receives complaints from investors concerning suspicious trading transactions in securities, and verifies the consistency of the complaint and takes appropriate action accordingly.
The CDVM ensures compliance of securities market transactions with the rules in order to guarantee market integrity. The CDVM conducts investigations when necessary.
When facts are proven, the CDVM can seek sanctions against parties that committed the violations or breached the rules regulating their activities or the functioning of the market. Sanctions are pronounced following a procedure that respects the rights of the concerned parties.