Knowledge Base
Explain the legal framework for financial instruments and investment services
Which European directive is the founding text of the legal framework for financial instruments and investment services?
MiFID II Directive 2014/65/EU of 15 May 2014 is the founding text at the European level. It is supplemented by MiFIR Regulation No 600/2014, which applies directly without requiring national transposition.
Which delegated regulation specifies the organisational requirements for investment services?
Delegated Regulation (EU) 2017/565 details the organisational requirements and operating conditions. It is part of more than forty delegated regulations that supplement the Level 1 texts such as MiFID II.
Which body is responsible for protecting savings invested in financial instruments and ensuring the proper functioning of markets in France?
The AMF ensures the protection of savings invested in financial instruments, investor information, and the proper functioning of markets. Its missions are defined in Article L.621-1 of the Code monétaire et financier.
What is the primary role of the ACPR in the context of investment services?
The ACPR ensures the preservation of financial system stability and client protection. It grants authorisations to investment firms and exercises prudential supervision over capital adequacy, liquidity, and governance.
The MiFIR regulation No 600/2014 requires national transposition to apply in France.
The MiFIR regulation applies directly without requiring national measures, in accordance with the principle of 'negative' transposition. Only the MiFID II directive was transposed through ordinance No 2016-827.
Effective application date of MiFID II in France
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Ordinance No 2016-827 transposed MiFID II, but its effective application date was 3 January 2018. This date marked a significant strengthening of investor protection and market transparency.
Bills of exchange are included in the definition of financial instruments under Article L.211-1 of the Code monétaire et financier.
Article L.211-1 expressly excludes bills of exchange and certificates of deposit from the definition of financial instruments. Only financial securities and financial contracts are included.
Categorize items by dragging them to the appropriate zones
Items to categorize:
Financial markets regulation
Financial stability supervision
Financial authorities in France are classified according to their roles. The AMF is responsible for financial markets, while the ACPR supervises financial stability and protects clients in the banking and insurance sectors. This classification illustrates the division of roles in the 'twin peaks' model.
Categorize items by dragging them to the appropriate zones
Items to categorize:
Financial market supervision
Financial stability and client protection
Legal transposition
Authorisation of market participants
The AMF supervises financial markets, while the ACPR ensures financial stability and client protection. Ordinance No. 2016-827 transposes MiFID II, and Article L.532-9 concerns the authorisation of portfolio management companies.
Categorize items by dragging them to the appropriate zones
Items to categorize:
Regulatory authorities
Structural laws
Advisory bodies
It is important to distinguish the different types of actors and instruments within the regulatory framework. Regulatory authorities include the AMF and the HCSF, structural laws are those that have marked the framework's evolution, and advisory bodies such as the CCLRF and the CCSF play a consultative role.