#2007-544Ordinance on Financial Instruments Markets
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This law updates the French financial instruments market regulations, establishing clear rules for the issuance and management of financial instruments and investment services. It mandates financial service providers to comply with new standards and introduces a guarantee mechanism to protect investors.
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Key Changes
- Expanded definition of financial instruments
- New standards for financial service providers
- Investor protection through a guarantee mechanism
Obligations
What this law requires
Financial service providers must comply with new standards for issuance and management of financial instruments as defined in Article L. 211-1, including restrictions that instruments financiers (types 1-3) can only be issued by the State, legal entities, common investment funds, real estate investment funds, or common credit funds.
Portfolio management companies (sociétés de gestion de portefeuille) providing investment services or holding collective investment fund units in registered form must adhere to a separate guarantee mechanism as established in Article L. 322-5.
Portfolio management companies adhering to the investor guarantee mechanism must provide necessary financial resources to the guarantee fund and may be required to subscribe to non-negotiable, registered association certificates upon membership.
Member companies must pay their called contributions (cotisations) to the guarantee fund or face sanctions under Article L. 621-15 and late payment penalties paid directly to the fund according to its internal regulations.
Financial service providers must offer investment services as defined in Article L. 321-1, including reception and transmission of orders, execution of orders, proprietary trading, portfolio management, investment advice, underwriting, guaranteed placement, non-guaranteed placement, and operation of multilateral trading systems.