#2021-796Ordinance Transposing EU Directive on Prudential Supervision of Investment Firms
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This law streamlines and updates regulations for investment and credit institutions in France, aligning them with EU directives. It primarily impacts firms that manage significant assets or belong to larger financial groups. Companies must now comply with new licensing and capital requirements, mandating enhanced risk management strategies to ensure financial stability.
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Key Changes
- Revised capital and licensing requirements for large asset management firms.
- Inclusion of investment firms within prudential supervision frameworks.
- Mandatory risk management and internal control strategies for firms.
Obligations
What this law requires
Investment firms previously licensed as investment enterprises must submit an application for credit establishment licensing no later than when either: (1) average total monthly assets calculated over 12 consecutive months reach or exceed €30 billion, or (2) average total monthly assets are below €30 billion but the firm is part of a group whose consolidated total assets reach or exceed €30 billion
Credit establishments must calculate average total monthly assets over a 5-year consecutive period and ensure they remain below specified thresholds if using authorization exclusively for activities defined in article 4 of EU Regulation 575/2013
Class 1 bis investment enterprises and other specified entities must comply with all operational limitations resulting from applicable legislative and regulatory texts that govern them
The Prudential Supervision and Resolution Authority (ACPR) may require specified entities to take corrective measures within a determined timeframe to restore financial/liquidity situation, improve management methods, or ensure organizational adequacy to avoid non-compliance with EU Regulation 575/2013 within 12 months
Systemically important global establishments cannot be subsidiaries of credit establishments, Class 1 bis investment enterprises, financial holding companies, investment holding companies, or mixed financial holding companies within the EU or EEA