Knowledge Base

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Questions

Which entities are authorized to carry out account keeping-custody activities under Article L.542-1 of the Code monétaire et financier?

European central banks only
Legal entities issuing their own financial instruments, credit institutions and investment firms authorized in France or their European branches, legal entities whose main purpose is the safekeeping of financial instruments, and certain institutions such as the Banque de France and the Caisse des dépôts
Digital services companies
Online brokers

Which article of the AMF General Regulation defines the principles governing the account between the account keeper-custodian and the client?

Article 322-19
Articles 322-5 and 322-6
Article 322-7
Article L.542-1

What is the minimum capital required for the authorization of an account keeper-custodian under Article R.542-1?

2.5 million euros
3.8 million euros
5 million euros
1 million euros

What guarantee is offered to investors in the event of fraudulent bankruptcy of an account keeper-custodian under Article L.322-1 of the Code monétaire et financier?

No guarantee is provided
An unlimited guarantee
A guarantee capped at 70,000 euros per person
A guarantee capped at 100,000 euros per person

Securities financing transactions using client assets require a specific written authorization.

True
False

Categorize items by dragging them to the appropriate zones

Items to categorize:

Minimum capital of 3.8 million euros
Segregation of client and proprietary assets
Application to the ACPR
Restitution of securities upon client request
Categories:

Regulatory obligations of account keepers-custodians

Authorization procedures

Five fundamental obligations of an account keeper-custodian under Article 322-7

Click to see answer

Account keepers-custodians may use clients' financial instruments without their prior express consent.

True
False