#2017-1107Ordinance on Financial Instruments Markets and Legal Separation of Portfolio Management Companies and Investment Firms
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This law separates the legal framework for portfolio management companies from investment firms in France. It aims to clarify operational and regulatory boundaries between these entities, impacting how they are regulated and how they operate within financial markets. Companies should review their current registration and compliance processes to ensure they align with the updated legal distinctions.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- The separation of legal frameworks for portfolio management companies and investment firms.
- Revisions in how these entities are regulated within financial markets.
- Mandates for companies to align their compliance processes with updated legal distinctions.
Obligations
What this law requires
Portfolio management companies must be legally separated and distinctly identified from other investment service providers in all regulatory filings and registrations under Articles L. 131-4, L. 141-6, and L. 144-1 of the Monetary and Financial Code.
Trading platform managers must implement effective security mechanisms to guarantee safety and authentication of information transfer means, minimize data alteration risk, prevent unauthorized access, and maintain data confidentiality when processing declarations for investment service providers (Article L. 420-3 V).
Trading platform managers must maintain at all times sufficient backup resources and mechanisms to support declaration activities for investment service providers (Article L. 420-3 V).
Trading platform managers must ensure colocation services and tariff structures comply with EU Delegated Regulation 2017/573 requirements regarding fairness and non-discrimination (Article L. 420-5).
Investment service providers (excluding portfolio management companies) must comply with tick size requirements as specified in EU Delegated Regulation 2017/588 for actions, certificates, and traded funds (Article L. 420-8).