AMF Doctrine Update
The Autorité des Marchés Financiers (the French financial markets regulator, the “AMF”) updated several of its instructions to provide additional details, including:
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Position-Recommendation n° 2011-24 on the drafting of marketing documents: marketing documents of certain tax (Malraux SCPI and Déficit foncier SCPI) French real estate funds (société civile de placement immobilier) shall detail clearly the outcome of the tax deduction on the gains made by the investors pursuant to their subscriptions;
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Position-Recommendation n° 2012-12 on fees: additional clarification is inserted with respect to performance fees. The document is also updated in respect of the AIFMD with respect to certain funds’ denomination;
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Position n° 2011-02 on securitization vehicles: the document has been updated in respect of the implementation of the AIFMD; and
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Position-Recommendation n° 2012-10 on employees investment funds: among others, additional details have been included with respect to the methodology of valuation of unlisted companies.
The revised instructions can be found on the AMF’s website.
MIF 2 Directive – AMF Guide
The AMF published a guide on the implementation of the MIF 2 Directive. The document is drafted as a Q&A on several issues with respect to the implementation of the MIF 2 Directive, subject to the level 3 provisions which will be published by the ESMA.
This guide addresses the issues met by the French management companies as providers of investment services.
AMF Publication – French Management Companies Share Capital
The AMF has published a draft update of its Position-Recommendation n° 2012-19 on the share capital of French management companies. The draft document focuses on the obligations with respect to share capital set forth in the French regulations. The proposed amendment is motivated (i) by the implementation of the CRR EU Regulations and (ii) by the revised ESMA Q&A on the AIFMD with respect to the calculation of additional own funds. It should be noted that the draft also authorizes the investment of French management companies’ own funds in new illiquid instruments, provided that certain conditions are met. The draft was published in advance of its implementation to enable French management companies to anticipate its application.
AFG Publications
In the context of the recent focus by regulators on funds’ cash management and the implementation of the AIFMD, the Association Française de la Gestion Financière (the “AFG”, the French professional association representing management companies) published on 22 February 2016 guidelines on cash management issues. The guidelines aim at offering a methodological guide and a range of recommendations which applies to management companies and members of the AFG.
The AFG also published an update to its Swing Pricing code of conduct. The update amended certain provisions and added additional details on the implementation of the provisions.
