Proposals to make French funds more attractive for international marketing

A working group set up by Euroclear France, Ailancy, professional associations and different actors of the asset management industry, presented 16 propositions to simplify the marketing of French funds to foreign investors. Three matters are raised: KYC procedure, knowledge of the actors’ liabilities and order routing. The group suggested a clarification of the legal framework and that the implementation of the blockchain technology may simplify the process.

Read more (in French). 

AMF implements ESMA’s guidelines on MiFID II product governance

The AMF issued Position n° 2018-04, applicable from 12 April 2018, incorporating ESMA guidelines on MiFID II product governance requirements (ESMA 35-43-620) in its doctrine. The guidelines specify the obligations of manufacturers and distributors of financial products regarding the target market assessment and therefore strengthen investor protection.

Read the AMF's position in full (in French).

Clarification of the term “beneficial owner” under French AML legislation

The French Ordinance No 2016-1635 of 1 December 2016 implemented the Fourth Anti-Money Laundering Directive ((EU) 2015/849) of 20 May 2015. French law now requires non-listed companies to identify and disclose their “ultimate beneficial owner” in the beneficial owner register of the commercial court. According to the Décret n° 2018-284 of 18 April 2018, the beneficial owner is the natural person(s) who (i) holds directly or indirectly more than 25% of the capital or the voting rights, or (ii) has the control over the company. If such person cannot be identified, the managers are deemed to be beneficial owners.

Read the Décret in full (in French).

Amendment to the AMF General Regulation: liquidity management

The French Arrêté of 13 April 2018 amended the AMF General Regulation in order to clarify the liquidity management tools for UCITS and retail investment funds, which can now (i) suspend the issue of shares/units where it is provided for in the bylaws and (ii) implement redemption in kind. Regarding hedging arrangements, UCITS may only offer currency risk hedging whereas retail investment funds may cover currency risk as well as any other risk.

Read the Arrêté in full (in French).