French Monetary and Financial Code
In forceI. - When the Autorité de contrôle prudentiel et de résolution initiates disciplinary proceedings against an investment services provider from another Member State of the European Union or another State party to the Agreement on the European Economic Area operating in mainland France, Guadeloupe, French Guiana, Martinique, La Réunion, Mayotte and Saint-Martin, it shall send the competent authority of the home State of the institution in question the letter referred to in Article R. 612-36.
The Enforcement Committee of the Autorité de contrôle prudentiel et de résolution shall also send the said authority any observations in response sent by the institution and inform it of the summons provided for in Article R. 612-39 .
It shall include in the proceedings all information provided by the said authority on the measures it has adopted.
Except in urgent cases, a period of at least 30 clear days must elapse between the communication to the competent authority of the home State and the hearing provided for in article R. 612-39.
Before following the procedure provided for in the preceding paragraphs, the Autorité de contrôle prudentiel et de résolution may, in an emergency, take any precautionary measure to ensure the protection of persons to whom investment or related services are provided in France.
In the event of an infringement of rules of general interest within the meaning of Article L. 511-24 or of the provisions mentioned in II of Article L. 561-36-1, the Autorité de contrôle prudentiel et de résolution may impose a disciplinary sanction without following the procedure set out in the preceding paragraphs.
II. - The Autorité des marchés financiers may sanction any breach of the rules it is responsible for ensuring compliance with, committed in France by an investment services provider or a management company with a branch in France or operating in France under the freedom to provide services.
Where the AMF finds that an investment service provider or management company with a branch or operating under the freedom to provide services within its territory is not complying with the rules with which it is responsible for ensuring compliance, it may issue an injunction to the investment service provider or management company concerned to put an end to the irregular situation within a specified period. It shall inform the competent authority of the home State of the service provider or management company and request it to take appropriate measures to put an end to the irregularities observed and to protect investors' interests. It shall include in the proceedings all information provided by that authority on the measures it has adopted.
If, despite the injunction and the measures taken by the home state, the ISP or the management company continues to infringe the rules applicable to it, the AMF, after informing the competent authority of the home state, shall take appropriate measures to prevent or penalise further irregularities and, if necessary, to prevent the ISP or the management company from carrying out further transactions in France. It shall inform the competent authority of the home Member State, the European Commission and the European Securities and Markets Authority.
In an emergency, the AMF may temporarily suspend the activity in France of the service provider or management company in question and take any precautionary measures necessary to ensure the protection of persons to whom services are provided in France by that service provider or management company. It shall inform the competent authority of the home Member State, the European Commission and the European Securities and Markets Authority.
