Morocco has fundamentally transformed its regulatory approach to collective investment schemes, replacing three-decade-old legislation with Law 03.25, which establishes enhanced transparency, supervision, and investor protection aligned with international standards.
The 1993 founding legislation served Morocco’s emerging financial market adequately during an era of limited actors and relatively simple financial instruments. However, as markets became more sophisticated, products diversified, and international standards evolved, the original framework revealed significant limitations. The new law represents more than technical updates—it constitutes a paradigm shift in collective savings regulation.
Law 03.25 introduces clearly organized thematic blocks covering general provisions, fund establishment, prudential rules, investor information, oversight, and sanctions. The legislation’s modernized language defines concepts precisely, eliminating ambiguities from previous regulations.
A major innovation establishes six formal fund categories: equity, bond, diversified, monetary, contractual, and participatory funds. This classification structures market offerings, clarifies investment strategies, and facilitates comparison for savers. Each category carries specific rules regarding asset composition, risk levels, and management constraints.
Participatory finance, absent from the 1993 framework, receives explicit legal recognition. Participatory funds may now invest in sukuk, investment deposits, or Sharia-compliant equities, subject to religious council approval. This integration responds to growing demand for Islamic finance-compliant products within rigorous prudential frameworks.
The law strengthens risk management provisions, legally defining liquidity, global risk, and counterparty risk concepts. Concentration limits per issuer remain but are refined, with clearly framed exceptions for government securities or index funds. Financial derivatives usage is authorized but strictly regulated to prevent speculative excesses, reflecting alignment with international standards including European UCITS directives.
Transparency requirements undergo substantial improvement. Simple information notices are replaced by formal prospectuses approved by Morocco’s Capital Market Authority. All preliminary communications require oversight, substantial modifications need new approval, and continuous investor information becomes central obligation.
The Authority’s expanded powers for licensing, permanent oversight, and sanctions reflect proactive, preventive regulation aimed at reinforcing market confidence and protecting Morocco’s collective investment industry.
