#2015-1024Ordinance No. 2015-1024 on Adapting Legislation to EU Financial Law
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This law updates France's financial regulations to align with EU standards, focusing on deposit guarantee mechanisms and financial resolution processes. It mandates that financial institutions participate in a deposit guarantee fund, outlining who is eligible for coverage and how operations are funded.
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Key Changes
- Financial institutions must join the deposit guarantee and resolution fund
- Defines the deposit guarantee mechanism and financial resolution funding
- Excludes certain deposits from coverage based on specific criteria
Obligations
What this law requires
Financial institutions (credit establishments, investment enterprises, financing companies, financial holding companies, and mixed financial holding companies) authorized in France must adhere to the deposit guarantee and resolution fund (fonds de garantie des dépôts et de résolution).
Credit institutions must provide deposit guarantee coverage up to a specified ceiling for funds held in accounts denominated in euros or other State currencies, provided the funds are to be returned by the credit institution to the account holder per applicable legislative, regulatory, or contractual provisions and do not serve as collateral for obligations.
Deposit guarantee coverage must exclude deposits held by credit establishments, investment enterprises, financing companies, financial holding companies, electronic money institutions, payment institutions, insurance/reinsurance enterprises, collective investment undertakings, pension organizations, the State, territorial collectivities, and public institutions.
Certain categories of deposits are excluded from guarantee coverage including: deposits evidenced only by financial instruments, deposits not reimbursable at par, deposits constituting own funds, deposits linked to criminal money laundering convictions, anonymous or unidentified deposits, and negotiable debt securities.
The deposit guarantee mechanism must be activated by the Prudential Supervisory and Resolution Authority (ACPR) when it determines a credit institution cannot immediately or shortly restore funds to depositors, triggering the institution's deregistration and revocation of authorization.