France Dismisses Double-Trial System for Market Abuse

In France’s current legislation, a breach of the laws and regulations applicable to market abuse (i.e. insider trading) can be sanctioned on a criminal level and on administrative level (by the French Market Authority, the Autorité des Marchés Financiers). In a ruling similar to the Grande Stevens of March 2014 by the European Court of Human Rights, the French Conseil Constitutionnel upheld on 18 March 2015 that the double-prosecution applicable in France for market abuse was unconstitutional. Such double-trials can no longer be continued and France will have to revise its market abuse legislation before 1 September 2016.

Read the ruling (in French)

AMF Annual Compliance Presentation

The AMF held its annual training meeting for French compliance officers on 17 March 2015. The material included a detailed presentation of (i) the last year’s regulatory and legislative updates, (ii) the importance of risk management for French management companies focused in private equity and real estate and (iii) the impact of MiFID II on market intermediaries.

Read the full AMF materials (in French)

French Private Equity 2014 Market

The Association Française des Investisseurs pour la Croissance (AFIC, the French Private Equity association) published with Grant Thornton a detailed analysis of the 2014 French Private Equity market showing a 35% growth compared to 2013. Despite of this important increase, the French market remains nonetheless below its pre-crisis level. Earlier this month, the AFIC had published another study with the AFG (Association Française de Gestion, association representing French management companies) also showing an increase in fundraising for retail investors private equity funds. Both studies are available on the AFIC website.

AFG and Amafi's Response to ESMA on MiFID II/MiFIR

The AFG, (Association Française de Gestion), the association representing French management companies, replied to ESMA’s consultation paper on MiFID II and MIFIR on 2 March 2015. The answer pointed out the main concerns of French management companies including (i) the burden of heavy reporting requirements and (ii) the definition of liquid markets for bonds. The Amafi (Association of Financial Market Professionals) also replied to the ESMA consultation paper, the main criticism being on the transparency requirements for non-equity instruments. Both reports can be found on AFG and Amafi’s website.

Read AFG's response to ESMA's consultation paper

Read Amafi's response to ESMA's consultation paper