Knowledge Base

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Questions

Which article of the AMF General Regulation transposes the MiFID II requirements concerning conflicts of interest?

Article 321-40
Article 321-47
Article 321-50
Article 321-51

What is the minimum retention period for the conflicts of interest register according to the AMF?

1 year
3 years
5 years
7 years

What is the main method used to identify conflicts of interest under French law?

The annual mapping of potential conflict situations
The annual declaration of conflicts by clients
The quarterly external audit of transactions
Monthly consultation with regulators

Categorize items by dragging them to the appropriate zones

Items to categorize:

Procedures preventing the exchange of information between persons exposed to conflicts
Removal of direct links between the remuneration of persons carrying out conflicting activities
Separate supervision of potentially antagonistic functions
Implementation of specific procedures to manage an identified conflict
Categories:

Organisational prevention

Active conflict management

Personal declarations by employees regarding their external interests are part of the conflicts of interest identification framework.

True
False

Disclosure to the client on a durable medium is the primary means of managing conflicts of interest according to the AMF.

True
False

Difference between MiFID I and MiFID II regarding conflicts of interest

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According to Article 33 of Delegated Regulation 2017/565, which conflict of interest situation applies when the firm could make a financial gain at the client's expense?

An adviser recommends products generating the highest commissions
A manager invests client funds in securities issued by the parent company
An analyst issues recommendations on a company for which the institution holds a placement mandate
The firm conducts identical activities for multiple clients creating competing interests