French Monetary and Financial Code
In forceIn the event of the opening of receivership or compulsory liquidation proceedings against an intermediary referred to in Article L. 211-3, the court-appointed administrator or liquidator, together with the provisional administrator or liquidator appointed by the Autorité de contrôle prudentiel et de résolution, where applicable, shall verify on a security-by-security basis that all the financial securities held in an account with a central depository or another intermediary in the name of the defaulting intermediary, regardless of the nature of the accounts opened with these intermediaries, are in sufficient number to enable the intermediary to fulfil its obligations to the account holders.
If the number of such securities is insufficient, a proportional allocation is made among the account holders concerned on a financial security by financial security basis; the account holders may have the securities returned to them transferred to a securities account held by another intermediary or by the issuer.
For the claim corresponding to the financial securities which could not be returned to the account holders due to insufficient cash held by the central depository or another intermediary, the account holders are exempted from the declaration provided for in Article L. 622-24 of the Commercial Code.
The juge commissaire is informed of the result of the verification carried out by the administrator or liquidator and, where applicable, of the proportional distribution of the financial securities and of the transfers made at the request of the account holders.
