The Autorité des Marchés Financiers (AMF) and the Association Française de la Gestion Financière (the French Asset Management Association – AFG) have produced a report on the outcome of the FROG working group’s and on the implementation of its actions to raise the profile and broaden the distribution of French funds abroad.
The FROG group, the product of the AMF’s and AFG’s shared objective to provide French and foreign asset management firms that have chosen to domicile their investment funds in France with the best possible conditions for international growth, is now presenting the fruit of its labours. Seven concrete measures were decided to make the Paris financial centre more attractive to international investors.
The first two will allow investors to:
1. Choose from a comprehensive catalogue of fund subscription/redemption solutions (including the development of a transfer agent offering in France);
2. Invest in SICAVs (open-ended investment companies) that have opted to comply with a governance charter.
The five other measures, which emphasise transparency or give management companies more flexibility, will also allow asset management firms to:
3. Improve management fee disclosure and provide a clearer picture in the online comparison tools;
4. Decide on the absence or use of the AMF’s fund classification, which has been made optional;
5. Develop their activities by having expanded delegation possibilities;
6. Manage in the best way their investment strategy, in line with market conditions and in the best interest of holders thanks to an expanded range of liquidity management tools;
7. Benefit from new pre-marketing possibilities.
The AFG also intends to promote international awareness of the French asset management industry’s many strengths. To that end, it has just named Jean-Louis Laurens as its ambassador. He will promote the French asset management’s strengths within the professional bodies and to major international investors.
Jean-Louis Laurens takes on this assignment after serving as managing partner and chairman of the management committee of Rothschild & Cie Gestion since 2009.