Financial Markets

Business environment

France

Europe

International

FRANCE

AMF

Autorité des Marchés Financiers (AMF) is the French securities regulator. It was formed in 2003 from the merger of three other authorities: Commission des Opérations de Bourse (COB), Conseil des Marchés Financiers (CMF) and Conseil de Discipline de la Gestion Financière (CDGF).

The AMF is an independent public body with legal personality and financial autonomy. Its remit is to safeguard investments, ensure that investors receive material information, and maintain orderly financial markets. It also contributes to market regulation at the European and international levels.

For more information, visit www.amf-france.org

Financial Security Act

The Financial Security Act (no. 2003-706) was passed by the French parliament on 1 August 2003 to address a crisis of investor confidence that first emerged in the USA with the Enron and WorldCom affairs and then spread to France with the likes of Vivendi. The act obliged companies listed in France to abide by financial transparency and risk management rules. It also required them to provide investors with comprehensive information and made their managers more accountable for signing off on the company accounts.

For more information, visit http://www.amf-france.org/affiche.asp?id=4746

Regulated markets

The Financial Activity Modernisation Act (no. 96-597) transposed the EU Investment Services Directive (93/22/EEC) into French law. Adopted on 2 July 1996, it overhauled the regulation of investment services providers and regulated markets, the activities of which encompassed the entire European Economic Area. In particular, it introduced the concentration requirement, requiring securities trades to be executed on a regulated market.

For more information, visit www.amf-france.org/documents/general/5778_1.pdf

Trade associations

Trade associations fall into two broad categories:

• those affiliated with the national association of investment firms and credit institutions, AFECEI, which represents the collective interests of its members. Under the Financial Activity Modernisation Act of 2 July 1996, investment firms must join an AFECEI-affiliated industry group
• other groups, including those representing the private equity industry (AFIC), business associations (MEDEF, AFEP, FFSA, Croissance Plus, etc.), investment clubs (FFCI) and groups representing specialist areas of the financial industry (AFTE, CLIFF, SFAF, etc.)

For more information, see the 1984 Banking Act (no. 84-46, 24 January 1984), the 1996 Financial Activity Modernisation Act (no. 96-597, 2 July 1996) and Articles L. 511.29 and L. 531-8 of the Monetary and Financial Code.

Banque de France

The French central bank, Banque de France, is responsible for currency stability and for the oversight of services intended specifically for individuals, local authorities, businesses, and the banking and financial sector.

For more information, visit www.banque-france.fr/
Also, see the 1983 Banque de France Act (93-980, 4 August 1993) and Articles L. 141-1 et seq of the Monetary and Financial Code

Banking authorities

The 1984 Banking Act and its amendments create a detailed framework for regulating the activities of credit institutions as well as competition and consolidation in the financial sector.

For more information, visit www.banque-france.fr/fr/supervi/telechar/regle_bafi/l8446.pdf