Articles 321-46 to 321-51 of the AMF General Regulation transpose the MiFID II requirements into French law. More specifically, Article 321-47 incorporates the five conflict situations defined in Article 33 of the delegated regulation. It is essential for management companies to be familiar with these articles to comply with the regulations.

Article 35 of the delegated regulation requires the maintenance of a register of services and activities that have given rise to a conflict that is or may be detrimental. This register must be retained for the regulatory periods allowing the AMF to reconstruct each stage of the handling process. Although the text does not explicitly specify the minimum duration, it is generally accepted that this duration must be sufficient to allow effective supervision by the AMF.

Under French law, Articles 321-46 to 321-51 of the AMF General Regulation transpose the MiFID II requirements. One of the main methods for identifying conflicts of interest is the annual mapping of potential conflict situations. This mapping must be updated upon any organisational change or launch of new services, as mentioned in the text. It includes, among other things, operations where a manager invests client funds in securities issued by the parent company.

Article 34 of the delegated regulation defines a hierarchy in conflict management. Organisational prevention measures include procedures to prevent the exchange of information between persons exposed to conflicts, separate supervision, and the removal of direct links between remuneration. Active management measures come into play when prevention proves insufficient and may include specific procedures to manage the identified conflict.

The text mentions that personal declarations by employees regarding their external interests and family connections supplement the conflicts of interest identification framework. These declarations are essential because they help identify potential conflict situations that might not otherwise be apparent.

The text specifies that disclosure to the client on a durable medium is a means of managing conflicts of interest, but only as a last resort. The AMF sanctions commission has sanctioned several institutions for abusive use of disclosure as the primary management method, recalling its strictly subsidiary nature. Conflict management follows a hierarchy of interventions, with organisational prevention as the preferred approach.

Article 23 of the MiFID II directive requires investment service providers to take 'all appropriate measures' to identify and prevent or manage conflicts of interest. This wording marks a tightening compared to MiFID I, which only required 'reasonable' measures. This means that European regulators' expectations have increased, requiring more rigorous and systematic measures for conflict management.

Article 33 of Delegated Regulation 2017/565 defines five conflict of interest situations. The first situation specifically concerns cases where the firm or a relevant person could make a financial gain or avoid a loss at the client's expense. This situation is crucial because it involves direct harm to the client, requiring particular attention during risk mapping.