As part of the reform of its markets in financial instruments directive, on 7 April 2016 the European Commission adopted a delegated directive that sets out provisions on the safeguarding of financial instruments and funds, product governance and inducements. Ahead of the directive’s transposition into the General Regulation, the Autorité des Marchés Financiers (AMF) has opened a public consultation that will run until 10 June 2017.
The European directive of 15 May 2014 on markets in financial instruments (MiFID II) will enter into force on 3 January 2018. Transposition of MiFID II into French law has already been partially achieved by way of the Ordinance of 23 June 2016, and a further Ordinance will follow in due course.
The AMF now has to transpose the provisions of the European Commission’s delegated directive of 7 April 2016 into its General Regulation.
The delegated directive sets out the MiFID II measures on the safeguarding of financial instruments and funds belonging to clients, and on product governance. It also establishes rules governing the provision or reception of fees, commissions or any other benefits.
Consequently, the AMF has launched a public consultation on proposed changes to its General Regulation. The following changes are proposed to Book III – Service Providers:
- adapt existing measures and create new ones on the safeguarding of financial instruments belonging to clients;
- create a chapter on the new product governance obligations;
- replace the existing provisions of Article 314-76 with new provisions on inducements.
In the consultation paper, the AMF also specifies how these different provisions will apply to asset management companies.
Consultation responses must be submitted by 10 June 2017 to:[email protected].