Eligibility of UK equities for French plan d’épargne en actions if Hard Brexit

In February, France passed an ordinance (the “Ordinance”) relating to the consequences of a no-deal Brexit. Article 4 provides the rules applicable to the eligibility of UK equities for a French plan d’épargne en actions (PEA). Pursuant to the Ordinance and the terms of a decree:

• UK equities will remain eligible for the PEA for a period of 15 months after the date of the no-deal Brexit; and
• Shares or units of UK UCITS will remain eligible for the PEA for a period of 15 months after the date of the no-deal Brexit.

In addition, EU UCITS may decide to remain eligible or not for the French PEA after the date of a no-deal Brexit. In order to be eligible for the PEA, a UCITS must hold at least 75% ratio of its assets invested in EEA-based companies (the Ratio). The Ordinance and the decree provide the rules applicable to UK equities held by such EU UCITS after a no-deal Brexit:

• For EU UCITS which decide to remain eligible for the PEA, UK equities will remain eligible for the Ratio for a period of 21 months after the date of the no-deal Brexit; and
• For EU UCITS which decide not to remain eligible for the PEA, UK equities will remain eligible for the Ratio for a period of 15 months after the date of the no-deal Brexit.

GDPR guide for French management companies

The AFG published a guide for French management companies with respect to the GDPR, which entered into force last year. The goal of this guide is to provide assistance in meeting compliance issues and new obligations provided by GDPR.

Among other guidance, the guide highlights the kinds of personal data usually collected by management companies and details how to handle them in a way that complies with the management companies’ obligations, under the control of the Commission Nationale de l'Informatique et des Libertés (CNIL), which oversees the application of GDPR in France.

Read: The guide

AMF update on its guide on UCI monitoring

The Autorité des Marchés Financiers (the French financial markets regulator, the AMF) updated its guide n° 2011-25 which provides rules for the monitoring of funds. Included in this guide is an outline of control procedures, end of life management, side pockets, exposure and calculation of overall risks, information, and more.

Read: The updated guide 2011-25