French Monetary and Financial Code
In forceThe Autorité de contrôle prudentiel et de résolution may withdraw the authorisation of an investment firm at the request of the firm. It may also be decided ex officio by the AMF in the following cases:
1° The investment firm has obtained authorisation by making false statements or by any other irregular means ;
2° If it is class 1a, the investment firm no longer meets the prudential requirements set out in Part Three, Part Four or Part Six of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013, with the exception of the requirements set out in Articles 92a and 92b thereof;
2°a If it is a class 2 or class 3 investment firm, it no longer meets the prudential requirements laid down by Regulation (EU) 2019/2033 which are applicable to it;
3° The investment firm does not comply with its additional capital requirements imposed in accordance with II of Article L. 511-41-3 or in accordance with I of Article L. 533-4-4;
4° The investment firm no longer fulfils the conditions or undertakings to which its authorisation or a subsequent authorisation was subject or no longer offers the guarantee of being able to fulfil its obligations to its creditors and, in particular, no longer ensures the security of the funds entrusted to it by its depositors;
5° The investment firm has not made use of its authorisation within twelve months or if it has not been in business for at least six months.
Withdrawal of authorisation takes effect at the end of a period determined by the Autorité de contrôle prudentiel et de résolution.
During this period :
1. The investment firm remains subject to supervision by the Autorité de contrôle prudentiel et de résolution and the Autorité des marchés financiers. The Autorité de contrôle prudentiel et de résolution and the Autorité des marchés financiers may impose the disciplinary sanctions provided for in Articles L. 612-39 and L. 612-40 and the sanctions provided for in Article L. 621-15 on any investment firm whose authorisation has been withdrawn;
2. It may only carry out transactions that are strictly necessary for the discharge of its investment services;
3. The firm may only refer to its status as an investment firm by stating that its authorisation is in the process of being withdrawn.
Securities issued by the firm that are not traded on a regulated market are redeemed by the firm on their maturity date or, if this date is later than the expiry of the above-mentioned period, on the date set by the Autorité de contrôle prudentiel et de résolution.
At the end of this period, the firm loses its status as an investment firm and must have changed its corporate name.
Notwithstanding the provisions of 4° and 5° of article 1844-7 of the Civil Code, the early dissolution of an investment firm may only be ordered after withdrawal of its authorisation by the Autorité de contrôle prudentiel et de résolution. Notwithstanding articles L. 123-1 and L. 237-3 of the French Commercial Code, the publication and amending entry in the Trade and Companies Register relating to the dissolution must mention the date of the decision to withdraw authorisation issued by the Autorité de contrôle prudentiel et de résolution. Until its liquidation is completed, the undertaking remains subject to supervision by the Autorité de contrôle prudentiel et de résolution, which may impose all the penalties provided for in Articles L. 612-39 and L. 612-40 of this Code. The firm may not refer to its status as an investment firm without specifying that it is in liquidation.
