Socially Responsible Investment in France

The Autorité des Marchés Financiers (“AMF”) published a report on the French market practice with respect to Socially Responsible Investment (“SRI”). The study focused on the information provided to investors in relation to SRI. Pursuant to this study, the AMF noticed that the information was diverse from one fund to another. The AMF has therefore updated two Position-Recommendations on (i) the drafting of marketing documents and marketing of French UCIs and (ii) drafting of the French UCIs’ legal documentation, in order to provide guidelines on how to include SRI information in such documents.

Market Timing and Late Trading

The AMF has amended its Position n° 2004-07 which aims at preventing market timing and late trading activities in view of (i) the implementation of the AIFM Directive in France and (ii) the future implementation of the Solvency II Directive in France. The goal of such modification is to allow the communication of the portfolio details to insurance companies in order for them to determine their prudential ratios.

French Markets Key Figures: Asset Management Companies’ Profitability

The AMF published on 30 November 2015 the key figures on the profitability of French asset management companies. The figures show a steady growth in the total turnover (11.8 billion to 12.5 billion) and in operating income (from 2.3 billion to 2.5 billion). The revenue of French asset management companies are mainly formed by management fees (almost 80% of the total revenue).