French Monetary and Financial Code
In forceI.-The provisions of the first paragraph of article L. 532-18 and of the first paragraph of article L. 532-18-1 as well as the provisions of Section 2 of Chapter IV of Title I of Book II are applicable to management companies established in another Member State of the European Union which manage one or more FIAs governed by French law.
II - The Autorité des marchés financiers shall monitor compliance by the management companies referred to in I with the provisions of the first paragraph of Article L. 533-22-2-1 and 3° of the first paragraph of Article L. 533-10 when these management companies manage an AIF or market its units or shares on an unrestricted basis.
III - The Autorité des marchés financiers may require a management company referred to in I, which manages an AIF or markets its units or shares, to provide the information necessary to monitor the management company's compliance with the rules under the authority of this authority.
Where the Autorité des marchés financiers finds that a management company referred to in I which manages an AIF or markets its units or shares is in breach of any of the rules falling within its remit, it shall require that company to put an end to the breach and inform the competent authorities of its home Member State.
Where the management company refuses to provide the information referred to in the first paragraph or fails to take the necessary measures to put an end to the infringement referred to in the second paragraph, the AMF shall inform the competent authorities of the management company's home Member State.
If, despite the measures taken by the competent authorities of the management company's home Member State or if such measures prove inadequate or are not practicable in the Member State concerned, the management company continues to refuse to provide the information requested by the Autorité des marchés financiers pursuant to the first paragraph or persists in breaching the rules referred to in the second paragraph, the Autorité des marchés financiers may, after informing the competent authorities of the management company's home Member State, take appropriate measures, by virtue of its powers under Books V and VI, to prevent or penalise further irregularities and, to the extent necessary, prevent the management company from carrying out further transactions in mainland France, the overseas departments, the Department of Mayotte and Saint-Martin.
Where the activity of the management company in these territories consists of managing AIFs, the Autorité des marchés financiers may require it to cease managing such AIFs.
If the Autorité des marchés financiers has clear and demonstrable grounds for considering that the management company is in breach of obligations which do not fall within its competence, it shall inform the authorities of the management company's home Member State.
If, despite the measures taken by the competent authority of the home Member State or because of the inadequacy of such measures or in the absence of action within a reasonable time by the competent authority of the home Member State, the management company continues to act in a manner which is clearly prejudicial to the interests of the unitholders or shareholders of the AIF concerned, to the financial stability, or to the integrity of the French market, the Autorité des marchés financiers, after informing the competent authority of the home state of the management company, shall take the necessary measures to protect the unitholders or shareholders of the AIF concerned, financial stability and the integrity of the French market, including prohibiting the management company from continuing to market units or shares of the AIF concerned in mainland France, Guadeloupe, Guyana, Martinique, La Réunion, Mayotte and Saint-Martin.
