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01/09/2017

FR - End of legal assimilation of management companies to investment firms in France.

On 27 June 2017, a decree was published regarding financial instruments markets and the separation of the legal regime applying to asset management companies (AMCs) from that of investment firms (IFs).

On 27 June 2017, a decree was published regarding financial instruments markets and the separation of the legal regime applying to asset management companies (AMCs) from that of investment firms (IFs). A significant share of Directive MIFID II had already been transposed by decree No. 2016-827 of 23 June 2016.This new decree is an additional transposition of the provisions of MiFID II into French law in the area of cooperation with ESMA by the competent authorities of the Member States. It also contains provisions for compliance with the MiFIR regulation. Furthermore, the decree also aims a separating the legal regimes for AMCs from that of investment firms. Indeed, until now, asset management companies were assimilated with investment firms under French law, which de facto placed them fully within the MiF II Directive’s scope of application. While AMCs will no longer be covered by IF status, they nonetheless remain investment service providers (ISPs) whenever they provide investment services to their clients and they will remain subject only to the provisions of MIFII relating to the services provided. Like the entire MiFID II / MiFIR corpus, this decree enters into force on 3 January 2018.