Under Article L.542-1 of the Code monétaire et financier, entities authorized to carry out account keeping-custody activities include 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.

Articles 322-5 and 322-6 of the AMF General Regulation define the principles governing the account, the rights and obligations of the parties, as well as the information requirements and confidentiality obligations.

Article R.542-1 of the Code monétaire et financier stipulates that an application to the ACPR with minimum capital of 3.8 million euros is required for the authorization of an account keeper-custodian.

In the event of fraudulent bankruptcy of an account keeper-custodian, investors benefit from a securities guarantee capped at 70,000 euros per person, as stipulated in Article L.322-1 of the Code monétaire et financier.

Under the AMF General Regulation, securities financing transactions using client assets require a specific written authorization to protect client interests.

The distinction between the regulatory obligations of account keepers-custodians and authorization procedures is crucial for understanding the legal framework in which account keepers-custodians operate.

The five fundamental obligations are: exercising all due care to initiate securities and cash movements in accordance with client instructions, ensuring strict accounting of securities and their movements, facilitating the exercise of rights attached to financial securities, guaranteeing the segregation of client assets from its own assets, and returning registered securities upon client request.

The protection of client assets is based on the prohibition of using clients' financial instruments without their prior express consent, as stipulated by the AMF General Regulation.