French Monetary and Financial Code
In forceI. - Investment funds governed by Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011, known as "AIFs":
1° Raise capital from a number of investors with a view to investing it, in the interests of these investors, in accordance with an investment policy which these AIFs or their management companies define ;
2° Are not UCITS.
Where the AIF does not delegate the management of the capital raised globally, and subject to the provisions of the last paragraph of II and the provisions of 2°, 3° and the last paragraph of III of this article, the second paragraph of III of article L. 532-9 and I of article L. 214-167, it must meet the conditions applicable to portfolio management companies and comply with the provisions applicable to such companies.
II. - The following are governed by this section
1° AIFs open to non-professional investors governed by sub-section 2 ;
2° FIAs open to professional investors governed by sub-section 3;
3° Employee savings funds governed by sub-section 4;
4° Securitisation or financing undertakings governed by sub-section 5.
When an asset management company manages one or more AIFs falling under 1° to 4° of this II whose total asset value, combined with the other assets it manages and calculated in accordance with Article 2 of Commission Delegated Regulation (EU) No 231/2013 of 19 December 2012, is below the thresholds mentioned in IV of Article L. 532-9, these AIFs do not apply the provisions of paragraphs 1, 3, 4 and 5 of sub-section 1 and their management company is subject to the disclosure requirements set out in the General Regulation of the Autorité des marchés financiers. Their portfolio management company may choose to subject these AIFs to the provisions of paragraphs 1 to 5 of sub-section 1.
III. - AIFs not mentioned in II are referred to as: "Other AIFs".
Where a legal person manages one or more "Other AIFs" whose total value of assets, combined with the other assets it manages and calculated in accordance with Article 2 of Commission Delegated Regulation (EU) No 231/2013 of 19 December 2012:
1° Is greater than the thresholds mentioned in IV of Article L. 532-9, these "Other AIFs" appoint a depositary and are managed by a portfolio management company. These "Other AIFs" apply the provisions of paragraphs 1 to 5 of sub-section 1 and their management company is subject to the information requirements set out in the General Regulation of the Autorité des marchés financiers ;
2° Is below the thresholds mentioned in IV of Article L. 532-9, these "Other AIFs" appoint a custodian and are managed by a portfolio management company when they have at least one non-professional unitholder or shareholder. These "Other AIFs" do not apply the provisions of paragraphs 1, 3, 4 and 5 of sub-section 1 and their portfolio management company is subject to the disclosure requirements set out in the General Regulation of the Autorité des marchés financiers. Their portfolio management company may choose to subject these "Other AIFs" to the regime described in 1°;
3° Is below the thresholds mentioned in IV of Article L. 532-9, these "Other AIFs" are not required to appoint a depositary or to be managed by a portfolio management company when they have only professional unitholders or shareholders. These "Other AIFs" do not apply the provisions of VI of this article and paragraphs 1 to 5 of sub-section 1. The legal entity that manages these "Other AIFs" is registered with the Autorité des marchés financiers and is subject to the disclosure requirements set out in the general regulations of the Autorité des marchés financiers. It may choose to subject these "Other FIAs" to the regime described in 1°.
Where a portfolio management company manages one or more AIFs covered by II of this article and one or more "Other AIFs" covered by III of this article, the total value of whose assets, combined with the other assets it manages and calculated in accordance with Article 2 of Commission Delegated Regulation (EU) No 231/2013 of 19 December 2012, is less than the thresholds mentioned in IV of Article L. 532-9, these AIFs do not apply the provisions of paragraphs 1, 3, 4 and 5 of sub-section 1 and their management company is subject to the disclosure requirements set out in the General Regulation of the Autorité des marchés financiers. Their portfolio management company may choose to subject these AIFs to the regime described in 1°.
IV. - A "feeder AIF within the meaning of Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011" is an AIF which meets one of the following conditions:
1° At least 85% of its assets are invested in the units or shares of a master AIF within the meaning of Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 ;
2° At least 85% of its assets must be invested in several master AIFs where these master AIFs have identical investment strategies;
3° At least 85% of its assets must be exposed to a master FIA.
A master AIF within the meaning of Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 is an AIF in which another AIF invests or to which another AIF is exposed in accordance with 1°, 2° or 3°.
V. - The registered office and head office of an AIF or of the portfolio management company which manages an AIF are located in France. However, the registered office and head office of the management company may be located in another Member State of the European Union or in a third country if it carries on business in France under the freedom of establishment or the freedom to provide services pursuant to Article L. 532-21-3 or Article L. 532-30.
VI. - An AIF that has not delegated the overall management of its portfolio to a portfolio management company has an initial capital of at least €300,000.
VII. - The "principal broker" is a credit institution, a regulated investment firm or another entity subject to prudential regulation and adequate supervision offering services to professional investors primarily to finance and execute transactions in financial instruments as counterparty and which may also provide other services such as clearing and settlement of transactions, custody services, securities lending, technical services and customised operational support.
VIII. - The portfolio management company may delegate its functions under the conditions laid down in the General Regulations of the Autorité des marchés financiers.
IX. - I to IV apply to sub-funds as defined in Article L. 214-24-26.
X. - For the purposes of this section, references to the Member States of the European Union and to the European Union shall be understood to include the other States party to the Agreement on the European Economic Area.
