AMF Doctrine – Authorisation of “Pre-Marketing” Activities

The AMF updated its Position n° 2014-04, which is a guide to the marketing regime of UCITS and AIFs in France. These changes have been implemented following the lobbying of the task force (entitled French Route & Opportunities Garden) recently created which aims at improving French financial market competitiveness.

This update introduced the notion of “pre-marketing” of funds in France. Pursuant to this new regime, among others, it is now possible to conduct certain marketing activities of a fund prior to its authorisation. The revised Position also provides clarifications with respect to certain activities which do not constitute marketing.

Read AMF Instruction n° 2014-04 dated 4 July 2016 (in French). 

Read the legal update from Dechert’s financial services practice in Paris dated July 2016: "French AMF Permits Certain "Pre-Marketing" Activities".

AMF Doctrine – Details on Professional Obligations Towards Retail Clients

The Autorité des Marchés Financiers (the French Financial Markets Authority, the “AMF”) updated on 30 June 2016 its Position n° 2007-21 on the obligations of investment services providers managing portfolios for retails clients. The revised Position includes two clarifications:

• “Careful” profile for management mandates: no more than 30% of the retail client’s portfolio shall be invested in risky assets like equities, speculative bonds (high yield) or in all types of assets deemed to be risky. The remaining 70% shall be invested in securities with a lower risk profile. 
• Management report: management reports shall, for the considered period, provide relevant information on the management of the portfolio.

Read AMF Instruction n° 2007-21 dated 30 June 2016 (in French).

AMF Publication – UCITS V Directive: Guide for Asset Management Companies

The AMF updated its guide for asset management companies regarding UCITS 5 Directive on 3 August 2016. This guide has been drafted by taking into account the provisions of the Ordinance n° 2016-312 of 17 March 2016 implementing the UCITS V Directive under French law. This update aims at detailing the differences between the UCITS V Directive and the AIFM Directive on certain key aspects, including, among others:

• Remuneration provisions.
• Transparency obligations with respect to investors.

Read the Guide dated 3 August 2016 (in French).

Update of the AMF and ACPR Guide on crowdfunding

The guide on Crowdfunding initially published by the AMF and the Autorité de Contrôle Prudentiel et de Résolution (the French banking authority) on 30 September 2014 has been updated on 26 August 2016. This update provides certain clarifications as to the crowdfunding regime applicable in France.

Read the AMF and ACPR Guide dated 26 August 2016 (in French).