MiFID II / MiFIR update - France

Hello everybody, I am Roberto Cristofolini a Financial Services Partner in the Paris office and I would like to talk about the state of implementation of MiFID II. The transposition of MiFID II will take place in two stages. The French Parliament adopted a first Ordinance transposing Articles 1 to 66 out of 95 of MiFID II. An Ordinance in France is a measure equal to a French law.  Secondly, the French Parliament is expected to vote on a second Ordinance by 3 July 2017 to transpose the remaining Articles, mainly concerning the powers of the competent authorities.

The first Ordinance is broadly in line with MiFID II. Both French Ordinances will come into effect by 3 January 2018 as provided by MiFID II. By 3 January 2018 French law will also have been adapted to European Regulations such as MIFIR so as to ensure that no provision of French law is contrary to European Regulations. 

I would like to turn now to two specific points concerning third country investment firms. France took the option offered by Article 39 to require the establishment of a French branch for a third country investment firms intending to provide investment services or perform investment activities to retail clients in France. And secondly, an establishment of a French branch by a third country investment firm will require the prior authorisation of the ACPR [Autorité de contrôle prudential et de resolution], which is one of the French competent authorities. 

Concerning asset management companies, the AMF which is the second competent authority in France, has already published a number of guidelines designed to explain how MiFID II should be implemented in France. These guidelines contain provisions on client information by asset management companies on costs and charges. Secondly, on the required knowledge and experience of employees of asset management companies giving investment advice and information on financial services and products.

Thank you very much.