Advanced Search

Order No. 2004-1201 12 November 2004 Relating To The Supplementary Supervision Of Credit Institutions, Insurance Undertakings And Investment Firms Within A Financial Conglomerate

Original Language Title: Ordonnance n° 2004-1201 du 12 novembre 2004 relative à la surveillance complémentaire des établissements de crédit, des entreprises d'assurance et des entreprises d'investissement appartenant à un conglomérat financier

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.
Learn more about this text...

Information on this text

Application texts

Summary

Order ratified by Article 7-I of Law No.2005-811 of 20 July 2005.

Keywords

ARTICLE 38 , CODE OF ASSURANCES , CODE OF MUTUALITY , CODE MONETARY AND FINANCIAL , CODE OF SOCIAL SECURITY , ORDERATION , RATIFICATION

Legislative records




JORF n°266 of 16 November 2004 page 19255
text No. 5



Order No. 2004-1201 of 12 November 2004 on the supplementary supervision of credit institutions, insurance companies and investment companies owned by a financial conglomerate

NOR: ECOX0400214R ELI: https://www.legifrance.gouv.fr/eli/ordre/2004/11/12/ECOX0400214R/jo/texte
Alias: https://www.legifrance.gouv.fr/eli/ordre/2004/11/12/2004-1201/jo/texte


President of the Republic,
On the report of the Prime Minister and the Minister of State, Minister of Economy, Finance and Industry,
Having regard to the Constitution, including article 38;
Having regard to Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary monitoring of credit institutions, insurance companies and investment companies owned by a financial conglomerate and amending Directives 73/239/EEC, 79/267/EEC, 92/49/EEC, 92/96/EEC, 93/6/EEC and 93/22/EEC and Directives 98/78/EC and 2000/12/EC of the European Parliament and the Council;
Considering the insurance code;
Considering the monetary and financial code;
Considering the code of mutuality;
Considering the social security code;
Considering the trade code, including its article L. 233-16;
Having regard to Act No. 2004-237 of 18 March 2004 empowering the Government to transpose by order Community directives and to implement certain provisions of Community law, including Article 1 thereof;
Considering the opinion of the National Insurance Council of 30 September 2004;
Having regard to the advice of the Higher Council of the mutuality dated 14 October 2004;
The Council of State heard;
The Council of Ministers heard,
Order:

  • Chapter I: Amendments to the Insurance Code Article 1


    Chapter IV of Title III of Book III of the Insurance Code is thus amended:
    1° The title of the chapter is replaced by the following title: "Companies solvency and complementary monitoring of insurance groups and financial conglomerates";
    2° It is created a section I entitled “General Provisions” and comprising articles L. 334-1 and L. 334-2;
    3° Section L. 334-2 is amended as follows:
    (a) The first paragraph is replaced by the following:
    "For the application of the statutory and regulatory provisions relating to corporate solvency and the complementary monitoring of insurance groups and financial conglomerates:"
    (b) The 2° is replaced by the following:
    « 2° The expression: "participation means holding, directly or indirectly, at least 20% of the voting rights or capital of a company, or a set of rights in the capital of another company, which, by creating a lasting connection with it, is intended to contribute to the activity of the company";
    (c) At 3°, after the words: "a company that holds an interest in a company" are added the words: "or a company related to another company by a relationship specified in 7° of this article";
    (d) At 4°, after the words: "a company in which an interest is held" are added the words: "a company related to another company by a relationship specified in 7° of this article. » ;
    (e) The 7° to 13° are added:
    « 7° The term "group" means a set of companies composed of a parent company, its subsidiaries and entities in which the parent company or its affiliates hold participations, as well as related entities such that their administrative, management or oversight bodies are composed by a majority of the same persons or that they are placed under a single direction under a contract or statutory clauses. Institutions affiliated with a network and the central body within the meaning of Article L. 511-31 of the monetary and financial code are considered to be part of the same group for the purposes of this chapter. The same applies to entities belonging to cooperative groups governed by similar provisions in the legislation applicable to them;
    « 8° The term "regulated entity" means an insurance agency, a credit institution or an investment company having its head office in a Member State or in a State Party to the European Economic Area Agreement;
    « 9° The term "shared holding financial company" means a parent company other than a regulated entity, which, with its subsidiaries, at least one of which is a regulated entity with its headquarters in a Member State or another State Party to the European Economic Area Agreement, constitutes a financial conglomerate;
    « 10° The term "financial sector" means a sector composed of one or more entities in the following sectors:
    “(a) The banking and investment services sector, which includes credit institutions, investment companies, financial institutions or financial enterprises whose headquarters is located in a Member State or in a State Party to the Agreement on the European Economic Area;
    “(b) The insurance sector, which includes insurance companies, insurance companies, mutual insurance companies, mutual unions, insurance institutions, insurance institutions, pension institutions unions, insurance parity groupings or reinsurance companies whose head office is located in a Member State or in another State party to the agreement on the European Economic Area.
    "The financial sector also includes, where appropriate, one or more mixed holding financial companies;
    « 11° The term "competent authority shall mean any national authority of a Member State or another State Party to the Agreement on the European Economic Area, by a legislative or regulatory provision, with the power to monitor, individually or at the group level, one or more of the following categories of regulated entities:
    “(a) Insurance companies;
    “(b) Mutuals;
    “(c) Provident institutions;
    "(d) Credit institutions;
    “e) Investment companies;
    « 12° The term "competent authority concerned" means:
    « 1° Any competent authority of the States responsible for the consolidated sectoral monitoring of regulated entities belonging to a financial conglomerate;
    « 2° The coordinator designated in accordance with Article L. 334-9, if different from the authorities mentioned in 1°;
    « 3° Other competent authorities when the authorities mentioned in 1° and 2° deem it appropriate;
    « 13° The term "sectoral rules" refers to the rules concerning the prudential supervision of regulated entities and the rules for the complementary monitoring of entities belonging to an insurance group. » ;
    4° It is created a section II entitled: "Provisions for the Complementary Monitoring of Insurance Groups", including Article L. 334-3;
    5° It is created a section III which reads as follows:


    “Section III



    " Provisions relating to the supplementary monitoring of regulated entities belonging to a financial conglomerate
    "Art. L. 334-4. - Regulated entities belonging to a financial conglomerate are subject to additional monitoring under the conditions set out in this section, without prejudice to the sectoral rules applicable to them.
    "Art. L. 334-5. - I. - A group within the meaning of Article 7 L. 334-2 is a financial conglomerate when the following conditions are met:
    « 1° A regulated entity is at the head of the group or one of the affiliates of the group at least is a regulated entity, and:
    “(a) In the case where a regulated entity is at the head of the group, it is either the parent company of an entity of the financial sector or an entity that holds an interest in an entity of the financial sector or an entity related to an entity of the financial sector within the meaning of Article L. 334-2;
    “(b) In the case where there is no regulated entity at the head of the group, the activities of the group are carried out mainly in the financial sector;
    « 2° At least one of the group's entities belongs to the insurance sector and at least one belongs to the banking sector and investment services;
    « 3° The consolidated or aggregated activities of the group's entities in the insurance sector and the consolidated or aggregated activities of the entities in the banking and investment services sector are important.
    “II. - Regulation:
    « 1° The thresholds from which the activities of a group are considered to be primarily in the financial sector;
    « 2° The thresholds from which activity in each sector is considered important;
    « 3° The thresholds, criteria or conditions under which the competent authorities concerned may agree not to consider the group as a financial conglomerate or not to apply the provisions on supplementary monitoring.
    "III. - Any subgroup of a group that meets the criteria set out in I of this Article shall be exempted from the supplementary monitoring regime when it belongs to a group identified as a financial conglomerate subject to additional monitoring. However, the conglomerate coordinator or, where appropriate, the designated coordinator pursuant to section L. 334-9 for the complementary monitoring of the subgroup may, by a reasoned decision, submit the subgroup to the supplementary monitoring regime under conditions prescribed by regulation.
    "Art. L. 334-6. - The Commission for the Control of Insurance, Mutuals and Provident Institutions, the Banking Commission, the Autorité des marchés financiers, in liaison, if any, with the supervisory authorities of the regulated entities of the Member States or other States parties to the Agreement on the European Economic Area, identify the groups within the scope of the complementary monitoring of the financial conglomerates and exchange any useful information for the fulfilment of their respective missions.
    "When a group has been identified as a financial conglomerate and the control board is designated, in accordance with the provisions of section L. 334-9, as the supplementary monitoring coordinator, it shall inform the group head entity or, failing that, the regulated entity that displays the highest balance in the largest financial sector of the group. It also informs the competent authorities who have approved the regulated entities of the group and the competent authorities of the Member State or the other State party to the agreement on the European Economic Area in which the financial company holding joint has its head office, as well as the European Commission.
    "Art. L. 334-7. - I. - Complementary monitoring at a conglomerate level applies to any regulated entity meeting one of the following criteria:
    « 1° It is the head of the conglomerate;
    « 2° It is a parent company with a joint holding company with its head office in a Member State or in another State Party to the agreement on the European Economic Area;
    « 3° It is linked to another financial sector entity within the meaning of Article L. 334-2.
    “II. - In cases other than those referred to in I and Article L. 334-18, where persons hold a participation in a regulated entity or have a link of participation with those entities or have a significant influence on them that is not a result of participation or a link of participation, the competent authorities concerned shall, by mutual agreement, determine in respect of the objectives of the regulated surveillance, if and to what extent a complementary monitoring of the entities as a whole
    "To apply this supplementary monitoring, the conditions set out in Article L. 334-5, I, 2° and 3° shall be met.
    "Art. L. 334-8. - Regulated entities belonging to a financial conglomerate are subject under conditions specified by regulation to additional requirements for the adequacy of equity, transactions between the various entities of the conglomerate, concentration and risk management and internal control.
    "Art. L. 334-9. - I. - The coordinator is the competent authority responsible for the coordination and exercise of the complementary monitoring. The co-ordinator of the competent authorities of one of the Member States or other States parties to the European Economic Area Agreement which meets the criteria defined by regulation is the coordinator.
    “II. - It may decide, after consultation with the relevant authorities and the financial conglomerate, what method of calculating the additional requirements for the adequacy of the equity is applied, and decide not to include a particular entity within the scope of calculating the additional requirements for the adequacy of the equity in cases specified by regulation.
    "Art. L. 334-10. - When it is a coordinator, the supervisory board shall, under the supplementary supervision:
    « 1° Coordination of the collection and dissemination of any useful information in the normal course of business as in emergency situations, and in particular of any important information relevant to the prudential supervision of a competent authority under sectoral rules;
    « 2° The prudential control and assessment of the financial situation of a financial conglomerate;
    « 3° The assessment of the application of the rules relating to the adequacy of clean funds, the concentration of risks and transactions between the various entities of the conglomerate in accordance with the provisions of Article L. 334-8;
    « 4° Evaluation of the structure, organization and internal controls of the financial conglomerate;
    « 5° The planning and coordination of prudential activities, in cooperation with the relevant authorities.
    "Art. L. 334-11. - When the coordinator of a financial conglomerate is an authority of another Member State or a party to the agreement on the European Economic Area, he shall, in respect of the entities established in France, carry out the tasks defined in Article L. 334-10.
    "Art. L. 334-12. - In order to facilitate the exercise of complementary monitoring, the supervisory board shall conclude with the competent authorities concerned and, as appropriate, any other competent authority concerned, coordination agreements. These agreements are published in the Official Journal of the French Republic. They may entrust additional missions to the coordinator and specify the procedures to be followed in the context of supplementary monitoring. They may also specify the modalities for coordination with other competent authorities.
    "Art. L. 334-13. - The Supervisory Board cooperates with the competent authorities responsible for the monitoring of regulated entities belonging to a financial conglomerate and, when it does not exercise that role, with the coordinator.
    "For the needs of the exercise of their respective functions, the competent authorities may exchange information on regulated entities belonging to a financial conglomerate, in accordance with the sectoral rules, with the central banks of the Member States or other States parties to the agreement on the European Economic Area, the European System of Central Banks and the European Central Bank.
    "The conditions for the application of this section are set by regulation.
    "Art. L. 334-14. - By derogation from Act No. 68-678 of 26 July 1968 on the communication of documents and information of an economic, commercial, industrial, financial or technical nature to foreign natural or legal persons, any entity established in France, belonging to a financial conglomerate whose co-ordinator is an authority of a Member State or another State Party to the agreement on the European Economic Area shall transmit to the co-ordinator, at its request, any information that may be of interest.
    "Art. L. 334-15. - When the competent authorities of a Member State or another State Party to the Agreement on the European Economic Area, in specific cases, wish to verify the information relating to an entity established in France, regulated or not, owned by a financial conglomerate and referred to in Article L. 310-12, they request the supervisory board to carry out this audit.
    "The supervisory board shall, within the scope of its competence, either by conducting the audit itself, or by permitting the authority that has submitted the application to do so, or by permitting an auditor or an expert to do so.
    "If it does not carry out the audit itself, the competent authority that has submitted the application may, if it wishes, be associated with it.
    "Art. L. 334-16. - Where the control board, in the performance of its duties as coordinator, finds that the solvency of regulated entities belonging to a financial conglomerate may be compromised, or that the transactions between the various entities of the conglomerate or that the risk concentrations threaten the financial situation of these regulated entities, or that a regulated entity fails to comply with the requirements of section L. 334-8, or that a joint financial company
    « 1° One or more of the sanctions provided for in 1, 2, 4 and 4 bis of Article L. 310-18;
    « 2° Either instead, in addition to these sanctions, a monetary penalty which must be based on the gravity of the breaches committed and cannot exceed the highest of the following two amounts:
    "3% of the non-tax revenue earned during the last fiscal year, calculated over a twelve-month period, by the regulated entity in the subsidiary insurance sector of the joint holding financial company having made the largest turnover. This maximum is increased to 5% in the event of a new breach of the same obligation;
    "The minimum capital to which the subsidiary regulated entity of the joint holding financial company falls under the banking and investment services sector. When it includes several subsidiaries that are regulated entities, the fine cap is determined by reference to the capital of the regulated entity in that sector that is the highest minimum capital.
    "The corresponding amounts are paid to the public treasury and recovered as claims of the foreign state to tax and estate.
    "The control board may decide to defer its decision upon the expiry of a time limit for regulated entities or the holding financial company located at the head of the group to take any action to restore or strengthen their financial balance or to correct their practices.
    "In the cases referred to in the preceding paragraphs, the provisions of the last three paragraphs of Article L. 310-18 shall apply.
    "The monitoring commission shall inform the competent authorities responsible for the sectoral monitoring of the regulated entities of the financial conglomerate of these findings.
    "When the co-ordinator is a competent authority of another Member State or another State Party to the Agreement on the European Economic Area, the co-ordinator may pronounce against a joint holding financial company that has its seat in France, under the conditions provided for in the preceding paragraph, the sanctions provided for in this Article or take the measures provided for in its national law.
    "The competent sectoral authorities, including the monitoring commission when acting in this capacity, may use, for the purpose of complementary monitoring, the powers of sanctions they have under sectoral monitoring with respect to regulated entities under their control.
    "Art. L. 334-17. - When a regulated entity uses its membership of a financial conglomerate to avoid, in whole or in part, the application of the sectoral rules under its jurisdiction, the supervisory board may use the powers provided for in section II of the Single Chapter of Title I of Book III and Chapter III of Title II of Book III.
    "Art. L. 334-18. - When regulated entities belonging to a group engaged in activities both in the banking sector and in the insurance sector have a parent company for a company whose head office is located in a non-member State or party to the agreement on the European Economic Area, the supervisory board, when it fulfils the conditions set by Article L. 334-9 to be coordinator, verifies, on its own initiative or at the request of the This authority shall consult with the relevant authorities. If there is no equivalency, the provisions on supplementary monitoring are applied to these regulated entities.
    "In order to ensure the complementary monitoring of regulated entities belonging to a financial conglomerate whose parent company has its head office in a State that is not a party to the European Economic Area, the competent authorities may also apply other methods that they consider appropriate. These methods must have been validated by the supervisory board when it meets the requirements set out in Article L. 334-9 to be coordinator, after consultation with the other competent authorities concerned. The competent authorities may, inter alia, require the establishment of a joint holding financial company with its head office in a Member State or in another State Party to the Agreement on the European Economic Area and apply the provisions relating to the supplementary supervision to the regulated entities of the financial conglomerate encrypted by this joint holding financial company. The methods referred to in this paragraph shall be notified to the relevant authorities and to the European Commission.
    "Art. L. 334-19. - For the purpose of the supplementary monitoring provided for in this chapter, the control committee may conclude the agreements provided for in Article L. 334-12 with the competent authorities of a non-member State or not party to the agreement on the European Economic Area for the control of any entity, regulated or not, belonging to a financial conglomerate. »

    Article 2


    The first sentence of the first paragraph of Article L. 345-2 is replaced by the following:
    "The companies subject to State control pursuant to Article L. 310-1 and having their head office in France, the companies referred to in Article L. 310-1-1, the insurance group companies defined in Article L. 322-1-2 and the mixed holding financial companies defined in Article L. 334-2 shall establish and publish consolidated accounts in terms defined by regulation of the regulatory committee. »

    Article 3


    Title II of Book III is amended as follows:
    1° Section L. 321-1 is supplemented by the following provisions:
    "Before an approval is granted to an insurance company that is:
    “(a) Either a subsidiary of an insurance company approved in another Member State or a party to the agreement on the European Economic Area;
    “(b) Either a subsidiary of the parent company of a registered insurance company in another member state or party to the agreement on the European Economic Area;
    "(c) Either a company controlled by a person, physical or legal, who also controls a registered insurance company in another Member State or party to the agreement on the European Economic Area,
    the competent authorities of the other Member State or party to the agreement on the European Economic Area concerned are consulted. »
    2° After L. 321-1-1, an article L. 321-1-2 is inserted as follows:
    "Art. L. 321-1-2. - The committee of insurance companies consults the authority responsible for the supervision of credit institutions or investment companies, when it decides on an application for approval submitted by a subsidiary of an approved credit institution or an investment company approved in a Member State or in another State party to the agreement on the European Economic Area or a subsidiary of the parent enterprise of an approved investment company » ;
    3° Section L. 322-1-2 is amended as follows:
    (a) At 1°, after the words: "The expression: "insurance group companies means companies", the words are inserted: "who are not joint holding financial companies within the meaning of Article L. 334-2 and";
    (b) At 2°, the words: "and that insurance companies whose head office is located outside France" are replaced by the words: "or insurance companies whose head office is located outside France or the joint holding financial companies within the meaning of Article L. 334-2";
    4° Section L. 322-2 is amended as follows:
    (a) In the first paragraph, following the words: "an insurance group corporation defined in Article L. 322-1-2", the words are added: "or a joint holding financial company defined in Article L. 334-2";
    (b) In the seventeenth paragraph, before the words: "the competence, as well as the experience necessary for their function" is inserted the word: "honorability,"
    (c) It shall be inserted before the last paragraph, a paragraph to read:
    "When it is required to assess the honesty, competence and experience of executives and administrators who perform these same functions in entities other than those mentioned in the first paragraph and in the same group within the meaning of Article L. 334-2, the insurance company committee shall consult with the competent authorities under these other entities. It provides these authorities with information relevant to the exercise of their missions. » ;
    5° In the first paragraph of Article L. 322-4, following the words: "in insurance companies whose head office is located in France", the words are added: "as well as in mixed holding financial companies whose head office is located in France and owned by a financial conglomerate whose supervision is coordinated by the supervisory board under the conditions laid down in Article L. 334-9".

    Article 4


    Title I of Book III is amended as follows:
    1° In the fifth paragraph of Article L. 310-12, the words: "by companies subject to State control pursuant to Article L. 310-1-1, insurance companies and joint insurance companies defined in Article L. 322-1-2" are replaced by the words: "by companies subject to State control under Article L. 310-1-1, insurance 2
    2° In the first paragraph of section L. 310-13, the words: "Insurance Group Corporations and Joint Insurance Group Corporations defined in section L. 322-1-2" are replaced by the words: "Insurance Group Corporations and Joint Insurance Group Corporations defined in section L. 322-1-2 and mixed holding financial companies defined in section L. 334-2";
    3° In the first paragraph of section L. 310-14, the words: "to insurance companies and joint insurance companies defined in section L. 322-1-2" are replaced by the words: "to insurance companies, joint insurance companies defined in section L. 322-1-2 and joint holding financial companies defined in section L. 334-2";
    4° Article L. 310-19 is amended as follows:
    (a) In the first paragraph, after the words: "an insurance company or a joint insurance company defined in Article L. 322-1-2", the words are inserted: "or a joint holding financial company owned by a financial conglomerate whose supervision is coordinated by the control board under the conditions set out in Article L. 334-9";
    (b) At the penultimate paragraph, after the words: "or a corporation entering the scope of the combined accounts within the meaning of Article L. 345-2", the words are inserted: "or a corporation owned by a financial conglomerate whose supervision is coordinated by the control board under the conditions laid down in Article L. 334-9";
    5° Section L. 310-21 is amended as follows:
    (a) After the second paragraph, the following paragraph shall be inserted:
    "The Commission for the Control of Insurance, Mutuals and Provident Institutions may transmit to the Central Banks of the Member States or other States Parties to the Agreement on the European Economic Area, the European System of Central Banks, the European Central Bank and other bodies acting under their monetary competence, and, where appropriate, to other public authorities responsible for the monitoring of payment systems, information intended for the fulfilment of their mission. The information received in this context is subject to professional secrecy. » ;
    (b) The last paragraph is thus supplemented: "When it does not proceed to the audit itself, the authority that submitted the application may, if it wishes, be associated with it. » ;
    6° In the first paragraph of Article L. 310-28, the words: "The fact for any director of an insurance group or joint insurance group corporation defined in Article L. 322-1-2 or of a company subject to State control under Article L. 310-1 or L. 310-1-1" shall be replaced by the words: "The fact for any officer of a joint insurance company-2

  • Chapter II: Amendments to the Monetary and Financial Code Article 5


    Chapter I of Book V title I of the monetary and financial code is thus amended:
    (a) Following the first sentence of the sixth paragraph of Article L. 511-10, the words are added: "taking into account, where appropriate, the objectives of the complementary monitoring provided for in Chapter VII of Title I of Book V of this Code";
    (b) Section L. 511-20 is replaced by the following provisions:
    "Art. L. 511-20. - I. - Is a subsidiary of a credit institution, an investment company, a financial company or a joint holding financial company the company on which is exercised exclusive control within the meaning of Article L. 233-16 of the Commercial Code, or a dominant influence because of the existence of important and lasting bonds of solidarity resulting from financial commitments, executives or common services.
    “II. - Constitutes an interest in holding, directly or indirectly, at least 20% of the voting rights or capital of a company, or a set of rights in the capital of a company that, by creating a lasting connection with it, is intended to contribute to the activity of the company.
    "III. - Is a group of companies composed of a parent company, its subsidiaries and entities in which the parent company or its affiliates hold stakes, as well as related entities in such a way that their administrative, managerial or supervisory bodies are composed mostly of the same persons or that they are placed under a single direction under a contract or statutory clauses. Institutions affiliated with a network and the central body within the meaning of Article L. 511-31 are considered to be part of the same group for the purposes of this code. The same applies to entities belonging to cooperative groups governed by similar provisions in the relevant legislation.
    "IV. - The term: "financial group means the whole does not constitute a financial conglomerate formed by the direct or indirect subsidiaries, a credit institution, an investment company, or a financial company, and by the financial companies on which the parent company exercises joint control within the meaning of Article L. 233-16 of the Commercial Code.
    "The financial enterprises mentioned in the preceding paragraph are defined by regulation.
    "V. - The term "mixed group" means the whole formed by the subsidiaries, direct or indirect, of a parent company that is not a financial company, credit institution, investment company or a joint holding company within the meaning of section L. 517-4 but one of which at least one of the subsidiaries is a credit institution or an investment company. The parent company of a mixed group is a mixed company. » ;
    (c) In the first paragraph of Article L. 511-34, the words: "or a financial conglomerate" are added after the words: "mixed group" and, in the 1st, the words: "and complementary monitoring" are added after: "consolidated base";
    (d) In the second sentence of the third paragraph of Article L. 511-41, after the words: "financial groups" are added the words: "or mixed" and, after the same sentence, the following sentence is inserted: "Credit institutions shall notify the bank of the significant transactions between the credit institutions of a mixed group and the mixed company or its affiliates under the conditions defined in Article L. 613-8. »
    (e) It is inserted after L. 511-41, an article L. 511-41-1 as follows:
    "Art. L. 511-41-1. - When a credit institution has for a parent business a credit institution, an investment company or a financial company that has its head office in a State that is not a party to the agreement on the European Economic Area, the bank commission shall verify, on its own initiative or at the request of the parent company or of a regulated entity approved in a Member State or another State Party to the agreement on the competent European Economic Area, that the credit institution If there is no equivalence, the consolidated monitoring provisions applicable in France are applied to the credit establishment.
    "The Banking Commission may also use other methods guaranteeing equivalent consolidated monitoring, after approval by the competent authority which may be responsible for the consolidated monitoring of the European Economic Area and consultation with other relevant authorities of a Member State or another State Party to the Agreement on the European Economic Area. In particular, it may require the establishment of a financial company with its head office in a Member State or in another State Party to the European Economic Area. »

    Article 6


    Chapter VII of Book V title I is replaced by the following:


    “Chapter VII



    « Financial Companies
    and financial conglomerates



    “Section 1



    " Definitions



    "Subsection 1



    « Financial Companies


    "Art. L. 517-1. - A financial company is a financial institution, within the meaning of section L. 511-21, which has for subsidiaries, exclusively or principally, one or more credit institutions or investment companies or financial institutions and is not a joint holding financial company within the meaning of section L. 517-4 of this Code. At least one of these subsidiaries is a credit or investment company.


    "Subsection 2



    “Financial conglomerates


    "Art. L. 517-2. - I. - For the purposes of the supplementary monitoring provided for in Chapter III of Title III of Book VI, the following means:
    "1° "Regulated Entity: a credit institution, an insurance agency or an investment company with its head office in a Member State or another State Party to the European Economic Area Agreement. » ;
    "2° "Sectoral rules: rules concerning the prudential supervision of regulated entities;
    "3° "Financial sector: a sector composed of one or more entities belonging to the following sectors:
    “(a) The banking and investment services sector, which includes credit institutions, investment companies, financial institutions or financial enterprises whose headquarters is located in a Member State or in another State Party to the Agreement on the European Economic Area;
    “(b) The insurance sector, which includes insurance companies, insurance companies, mutual insurance companies, mutual unions, insurance institutions, insurance institutions, pension institutions unions, insurance parity groupings, or reinsurance companies whose head office is located in a Member State or in another State Party to the agreement on the European Economic Area.
    "The financial sector also includes, where appropriate, one or more mixed holding financial companies;
    "4°" Competent Authority: any national authority of a Member State or another State Party to the Agreement on the European Economic Area, with a legislative or regulatory provision, the power to monitor, individually or at the level of a group, one or more of the following categories of regulated entities:
    “(a) Credit institutions;
    “(b) Insurance companies;
    “(c) Mutuals;
    "(d) Provident institutions;
    “e) Investment companies;
    « 5° competent authority concerned :
    “(a) Any competent authority responsible for the consolidated sectoral monitoring of regulated entities belonging to a financial conglomerate;
    “(b) The coordinator designated in accordance with Article L. 633-2 of this Code, if it is different from the authorities mentioned in a;
    "(c) Other competent authorities, where the authorities referred to in a and b deem it appropriate.
    "Art. L. 517-3. - I. - A group within the meaning of Article L. 511-20 is a financial conglomerate when the following conditions are met:
    « 1° A regulated entity is at the head of the group or one of the affiliates of the group at least is a regulated entity and:
    “(a) In the case where a regulated entity is at the head of the group, it is either the parent company of an entity of the financial sector or an entity that holds an interest in an entity of the financial sector or an entity related to an entity of the financial sector within the meaning of Article L. 511-20;
    “(b) In the case where there is no regulated entity at the head of the group, the activities of the group are carried out mainly in the financial sector;
    « 2° At least one of the group's entities belongs to the insurance sector and at least one belongs to the banking and investment services sector;
    « 3° The consolidated or aggregated activities of the group's entities in the insurance sector and the consolidated or aggregated activities of the entities in the banking sector and investment services are important;
    “II. - Regulation:
    « 1° The thresholds from which the activities of a group are considered to be primarily in the financial sector;
    « 2° The thresholds from which activity in each sector is considered important;
    « 3° The thresholds, criteria or conditions under which the competent authorities concerned may agree not to consider the group as a financial conglomerate or not to apply the provisions on supplementary monitoring.
    "III. - Any subgroup of a group that meets the criteria set out in I of this Article shall be exempted from the supplementary monitoring regime when it belongs to a group identified as a financial conglomerate subject to additional monitoring. However, the conglomerate coordinator or coordinator that may be designated in accordance with section L. 633-2 for the complementary monitoring of the subgroup may, by a reasoned decision, submit the subgroup to the additional monitoring under conditions prescribed by regulation.
    "Art. L. 517-4. - A joint holding company is a parent company other than a regulated entity, with its headquarters in a Member State or another State Party to the Agreement on the European Economic Area, which, together with its subsidiaries, at least one of which is a regulated entity, constitutes a financial conglomerate.


    “Section 2



    “General provisions



    "Subsection 1



    « Financial Companies


    "Art. L. 517-5. - The financial companies are subject to the provisions set out in the second paragraph of section L. 511-13, section L. 511-21, sections L. 511-35 to L. 511-38, L. 511-41, L. 571-3, L. 571-4, L. 613-8 to L. 613-11, L. 613-16, L. 613-18, L. 613-21 and L. 613-22 under specified conditions.
    "The auditors of these companies are also subject to all the provisions applicable to the auditors of credit institutions and investment companies.


    "Subsection 2



    “Financial conglomerates


    "Art. L. 517-6. - Regulated entities belonging to a financial conglomerate are subject to the supplementary monitoring provided for in this subsection and articles L. 633-1 to L. 633-14, without prejudice to the sectoral rules applicable to them.
    "Art. L. 517-7. - I. - Complementary monitoring at a conglomerate level applies to regulated entities meeting one of the following criteria:
    « 1° It is the head of the conglomerate;
    « 2° It is a parent company with a joint holding company with its head office in a Member State or in another State Party to the agreement on the European Economic Area;
    « 3° It is linked to another financial sector entity within the meaning of Article L. 511-20.
    “II. - In cases other than those referred to in I and Article L. 633-14, where persons hold a participation in a regulated entity or have a link of participation with those entities or have a significant influence on them that is not a result of participation or a link of participation, the competent authorities concerned shall, by mutual agreement, determine in respect of the objectives of the regulated financial surveillance as a whole, if and to what extent, a complementary monitoring
    "To apply this supplementary monitoring, the conditions set out in 2° and 3° of Article L. 517-3 must be met.
    "Art. L. 517-8. - Regulated entities belonging to a financial conglomerate are subject, under conditions specified by regulation, to additional requirements for the adequacy of equity, transactions between the various entities of the conglomerate, concentration and risk management and internal control.
    "Art. L. 517-9. - The joint holding financial companies whose coordinator is the bank commission are subject to the provisions of the second paragraph of Article L. 511-13, the provisions of Articles L. 511-35 to L. 511-38 and to the supplementary supervision provided for in Article L. 517-8. »

    Article 7


    Section 5 of Chapter I of Title VII of Book V is thus amended:
    (a) The title is replaced by the following title: "Financial companies and mixed holding financial companies";
    (b) In section L. 571-14, the term "in accordance with section L. 517-1" is replaced by the term "in accordance with section L. 517-5 or L. 517-9" and, after the words "financial companies" are added the words "or a mixed holding financial company".

    Article 8


    The articles L. 533-1-1 and L. 533-1 of Chapter III of Title III of Book V are inserted as follows:
    "Art. L. 533-1-1. - Investment service providers notify the bank board of significant intragroup transactions, under the conditions set out in section L. 613-8.
    "Art. L. 533-1-2. - When an investment service provider other than a portfolio management company has a credit institution, an investment company or a financial company that has its head office in a non-member State or a party to the agreement on the European Economic Area, the banking commission shall verify, on its own initiative or at the request of the parent company or a regulated entity in a Member State or in another State Party to the agreement
    "In the absence of an equivalent consolidated monitoring, it is applied by analogy to the investment service provider the provisions relating to the consolidated monitoring applicable in France.
    "The Banking Commission may also use other methods guaranteeing equivalent consolidated monitoring, after approval by the competent authority which may be responsible for the consolidated monitoring of the European Economic Area and consultation with other relevant authorities of a Member State or another State Party to the Agreement on the European Economic Area. In particular, it may require the establishment of a financial company with its head office in a Member State or in another State Party to the European Economic Area Agreement. »

    Article 9


    In 6 of Article L. 611-1, it is added: "and the conditions under which these standards are met on a consolidated basis, including in the absence of a parent company with its head office in France".

    Article 10


    Section L. 612-6 is amended to read:
    1° In the third paragraph, the words: "the monitoring of credit institutions, investment companies and financial institutions" are replaced by the words: "the monitoring of credit institutions, investment companies, financial institutions and insurance organizations";
    2° Between the first and the second sentence of the same paragraph, the following sentence is inserted: "These authorities, when they are those of a Member State or another State Party to the Agreement on the European Economic Area, are deemed to meet these conditions. »

    Article 11


    Chapter III of title I of book VI is thus amended:
    (a) In section L. 613-10, the words: "or an investment company as well as the subsidiaries of these corporate entities" are replaced by the words: "or an investment company, the subsidiaries of these corporate entities, and any other company or corporate entity owned by the same group";
    (b) At the end of the first paragraph of Article L. 613-12 of the monetary and financial code, the following sentence is added: "When they do not proceed to the audit themselves, the competent authorities who have submitted this application may, if they wish, be associated with it" and, at the end of the second paragraph, add the sentence: "When it does not proceed to the audit itself, the bank board may, if it wishes, be associated with it. »

    Article 12


    Title III of Book VI is amended as follows:
    (a) The title is replaced by the following title: "Information Exchanges and Complementary Monitoring of Financial Conglomerates";
    (b) It is created a chapter III which reads as follows:


    “Chapter III



    “Additional monitoring
    Financial conglomerates



    “Section 1



    « Identification of financial conglomerates


    "Art. L. 633-1. - The Banking Commission, the Commission for the Control of Insurance, Mutuals and Provident Institutions, the Autorité des marchés financiers, in liaison, if any, with the supervisory authorities of the regulated entities of the Member States or other States parties to the Agreement on the European Economic Area, identify groups within the scope of the complementary monitoring of the financial conglomerates and exchange any information useful to that effect for the fulfilment of their respective missions.
    "When a group has been identified as a financial conglomerate and the bank commission is designated, in accordance with the provisions of Article L. 633-2, as the supplementary monitoring coordinator, it shall inform the group head entity or, failing that, the regulated entity that displays the highest balance in the largest financial sector of the group. It also informs the competent authorities who have approved the regulated entities of the group and the competent authorities of the Member State or other State party to the agreement on the European Economic Area in which the joint holding financial company has its head office, as well as the European Commission.


    “Section 2



    “Designation of the coordinator


    "Art. L. 633-2. - I. - The coordinator is the competent authority responsible for the coordination and exercise of the complementary monitoring. It may decide, after consultation with the relevant authorities and the financial conglomerate, what method of calculating the additional requirements for the adequacy of the equity is applied, and decide not to include a particular entity within the scope of calculating the additional requirements for the adequacy of the equity in cases specified by regulation.
    “II. - The co-ordinator is the competent authority of one of the States Parties to the European Economic Area Agreement that meets the criteria defined by regulation.


    “Section 3



    “Office of the Coordinator


    "Art. L. 633-3. - When designated as coordinator, the banking commission shall, under the supplementary supervision:
    “(a) Coordination of the collection and dissemination of any useful information in the normal course of business as in emergency situations, and in particular of any important information relevant to the prudential supervision of a competent authority under sectoral rules;
    “(b) The prudential control and assessment of the financial situation of a financial conglomerate;
    "(c) The assessment of the application of the rules relating to the adequacy of clean funds, the concentration of risks and transactions between the various entities of the conglomerate in accordance with the provisions of Article L. 517-8;
    "(d) Evaluation of the structure, organization and internal controls of the financial conglomerate;
    “e) The planning and coordination of prudential activities, in cooperation with the relevant authorities.


    “Section 4



    "Cooperation and exchange of information for purposes
    Supplementary Monitoring


    "Art. L. 633-4. - When the coordinator of a financial conglomerate is an authority of another Member State or a party to the agreement on the European Economic Area, he shall, in respect of the entities established in France, carry out the tasks defined in Article L. 633-3.
    "Art. L. 633-5. - In order to facilitate the exercise of complementary supervision, the bank commission concludes with the competent authorities concerned, and, as appropriate, any other competent authority concerned, coordination agreements. These agreements are published in the Official Journal of the French Republic. They may entrust additional missions to the coordinator and specify the procedures for further monitoring. They may also specify the modalities for coordination with other competent authorities.
    "Art. L. 633-6. - The Banking Commission and, where appropriate, the Financial Markets Authority shall cooperate with the competent authorities responsible for the supervision of regulated entities belonging to a financial conglomerate and, where they do not exercise that role, with the Coordinator. The conditions for the application of this section are set by regulation.
    "Art. L. 633-7. - For the purpose of carrying out their respective functions, the competent authorities may exchange information on the regulated entities belonging to a financial conglomerate with the central banks of the Member States or other States parties to the agreement on the European Economic Area, the European System of Central Banks and the European Central Bank.


    “Section 5



    « Exercise of control


    "Art. L. 633-8. - Articles L. 613-8 to L. 613-10 are applicable to all entities located in a Member State or another State Party to the agreement on the European Economic Area, regulated or not, owned by a financial conglomerate whose bank commission is the coordinator.
    "Art. L. 633-9. - By derogation from Act No. 68-678 of 26 July 1968 on the communication of documents and information of an economic, commercial, industrial, financial or technical nature to foreign natural or legal persons, any entity established in France, belonging to a financial conglomerate whose coordinator is an authority of a Member State or another State Party to the agreement on the European Economic Area is required to transmit to the coordinator, at his request, any additional information which may be of interest.
    "Art. L. 633-10. - When the competent authorities of a Member State or another State Party to the Agreement on the European Economic Area wish, in specific cases, to verify the information relating to an entity established in France, regulated or not, owned by a financial conglomerate and referred to in Article L. 613-10, they request the bank commission or, where appropriate, the Autorité des marchés financiers to carry out this audit.
    "The Banking Commission or, where appropriate, the Financial Markets Authority shall, within the scope of its jurisdiction, either by carrying out the audit itself or by permitting the authority that has submitted the application to do so, or by permitting an Accounts Commissioner or an Expert to do so.
    "If it does not carry out the audit itself, the competent authority that has submitted the application may, if it wishes, be associated with it.
    "Art. L. 633-11. - For the purpose of the supplementary supervision provided for in this chapter, the bank committee may conclude the agreements provided for in Article L. 613-13 with the competent authorities of a State not party to the agreement on European Economic Area for the control of any entity belonging to a financial conglomerate.


    “Section 6



    " Implementing measures


    "Art. L. 633-12. - I. - If the bank commission, when designated as a coordinator, finds that the regulated entities of a financial conglomerate comply with the requirements set out in section L. 517-8 but that their credits nevertheless may be compromised, or that transactions between the entities of the group or the risk concentrations threaten the financial situation of the said regulated entities, it may carry out the joint financial company title VI
    “II. - If the bank board, when designated as a co-ordinator, finds that one or more regulated entities or that a joint financial company holding a financial conglomerate does not comply with the requirements set out in section L. 517-8 or section L. 517-9, or did not respond to a recommendation, or did not take into account a custodial, or did not comply with the particular conditions
    « 1° To impose penalties under section L. 1, 2, 4 and 5, 613-21, I;
    "2° Pronounce, either instead or in addition to these sanctions, a monetary penalty, the amount of which must be based on the gravity of the breaches committed and cannot exceed the highest of the following two amounts:
    "3% of the non-tax revenue earned during the last fiscal year, calculated over a twelve-month period, by the regulated entity in the subsidiary insurance sector of the joint holding financial company having made the largest turnover. This maximum is increased to 5% in the event of a new breach of the same obligation;
    "The minimum capital to which the subsidiary regulated entity of the joint holding financial company falls under the banking and investment services sector. When it includes several subsidiaries that are regulated entities, the fine cap is determined by reference to the capital of the regulated entity in that sector that is the highest minimum capital;
    « 3° The banking commission may decide that the penalties imposed under this section will be published at the expense of the legal person sanctioned in the newspapers or publications that the commission designates.
    "The bank commission informs the relevant sectoral authorities of the regulated entities of the financial conglomerate of these findings.
    "III. - Competent sectoral authorities, including the Banking Commission, may use, for the purpose of supplementary monitoring, the powers of sanctions they have under sectoral monitoring with respect to regulated entities under their control.
    "IV. - Where the co-ordinator is a competent authority of another Member State or a party to the agreement on the European Economic Area, the co-ordinator may pronounce against a joint holding company having its seat in France the sanctions provided for in this Article or take the measures provided for in its national law.
    "Art. L. 633-13. - When a regulated entity uses its membership in a financial conglomerate to avoid, in whole or in part, the application of the sectoral rules under its jurisdiction, the bank board may make use of the powers provided for in sections IV and V of Chapter III of Title I of Book VI.
    "When the regulated entity referred to in the preceding paragraph is an investment company, the Autorité des marchés financiers may make use, subject to the competence of the bank commission, of the powers provided for in subsections 3, 4 and 4 bis of section IV of the Single Chapter of Title II of Book VI.


    “Section 7



    “Mother companies with their headquarters
    outside the European Economic Area


    "Art. L. 633-14. - When regulated entities belonging to a group carrying out activities both in the banking and investment services sector and in the insurance sector have a parent company for which the head office is located in a non-member State or a party to the agreement on the European Economic Area, the bank board, when it meets the conditions set by Article L. 334-9 to be competent, verifies, on its own initiative or This authority shall consult with the relevant authorities.
    "In the absence of an equivalent supplementary monitoring, the relevant authorities designate a coordinator and apply by analogy to these regulated entities the provisions relating to supplementary monitoring.
    "In order to ensure the complementary monitoring of regulated entities belonging to a financial conglomerate whose parent company has its head office in a State that is not a party to the agreement on the European Economic Area, the competent authorities concerned may also apply other methods that they consider appropriate. These methods must have been validated by the bank commission, when it meets the conditions set out in Article L. 334-9 to be coordinator, after consultation with other relevant authorities. The competent authorities concerned may, inter alia, require the establishment of a joint holding financial company with its head office in a Member State or in another State Party to the Agreement on the European Economic Area and apply the provisions relating to the supplementary supervision to the regulated entities of the financial conglomerate encrypted by this joint holding financial company. The methods referred to in this paragraph shall be notified to the relevant authorities and to the European Commission. »

  • Chapter III: Changes to the mutuality code Article 13


    Section I of chapter II of Book II title I of the mutuality code is amended as follows:
    I. - Article L. 212-7-1 is amended as follows:
    (a) The first paragraph is replaced by the following:
    "For the application of the legislative and regulatory provisions relating to the solvency of mutual funds and unions referred to in Book II, the supplementary supervision established in Article L. 212-7-2 and the supplementary monitoring of financial conglomerates:"
    (b) 2° is replaced by the following provisions: "The expression: "participation means the possession, directly or indirectly, of at least 20% of the voting rights or capital of a corporation, or a set of rights in the capital of a corporation, which, by creating a lasting connection with it, is intended to contribute to the activity of that corporation";
    (c) At 3°, after the words: "an organization that holds an interest in an organization. are added the words: "or an organization linked to another body by administrative, managerial or supervisory bodies composed mostly of the same persons" and the last sentence of the 3° is deleted;
    (d) The 4° and 5° respectively become the 5° and 6°;
    (e) The 4th is thus written:
    « 4° The term "affiliated agency" means an organization that is either subordinate or another organization in which an participation is held, or an organization linked to another organization by a relationship specified in the 7th of this article. » ;
    (f) The 7° to 13° are added:
    « 7° The term "financial group" means a set of organizations composed of a reference agency, its subordinate bodies and entities in which the reference agency or its subordinate bodies hold participations, as well as related entities in such a way that their bodies of administration, management or oversight are composed by a majority of the same persons or are placed under a single direction under a contract or statutory clauses. Institutions affiliated with a network and the central body within the meaning of Article L. 511-31 of the monetary and financial code are considered to be part of the same group for the purposes of this chapter. The same applies to entities belonging to cooperative groups governed by similar provisions in the legislation applicable to them;
    « 8° The term "regulated entity means a mutual or a union governed by Book II of this Code, a credit institution or an investment company having its head office in a Member State or another State Party to the agreement on the European Economic Area;
    « 9° The term "shared holding financial company" means a reference agency other than a regulated entity that, with its subordinate bodies, at least one of which is a regulated entity with its seat in a Member State or another State Party to the European Economic Area Agreement, constitutes a financial conglomerate;
    « 10° The term "financial sector" means a sector composed of one or more entities in the following sectors:
    “(a) The banking and investment services sector, which includes credit institutions, investment companies, financial institutions or financial enterprises whose headquarters is located in a Member State or in another State Party to the Agreement on the European Economic Area;
    “(b) The insurance sector, which includes insurance companies, insurance companies, mutual insurance companies, mutual unions, insurance institutions, insurance institutions, pension institutions, insurance parity groupings or reinsurance companies whose head office is located in a Member State or in another State party to the agreement on the European Economic Area;
    "The financial sector also includes, where appropriate, one or more mixed holding financial companies;
    « 11° The term "competent authority shall mean any national authority of a Member State or another State Party to the Agreement on the European Economic Area, by a legislative or regulatory provision, with the power to monitor, individually or at the group level, one or more of the following categories of regulated entities:
    “(a) Insurance companies;
    “(b) Mutuals;
    “(c) Provident institutions;
    "(d) Credit institutions;
    “e) Investment companies;
    « 12° The term "competent authority concerned" means:
    « 1° Any competent authority of the States responsible for the consolidated or combined sectoral monitoring of regulated entities belonging to a financial conglomerate;
    « 2° The coordinator designated in accordance with Article L. 212-7-9, if different from the authorities referred to in point a;
    « 3° Other competent authorities, when the authorities mentioned in 1° and 2° deem it appropriate;
    « 13° The term "sectoral rules" refers to the rules concerning the prudential supervision of regulated entities and the rules for the supplementary monitoring established in Article L. 212-7-2. »
    II. - After Article L. 212-7-3, articles L. 212-7-4 to L. 212-7-19 are created as follows:
    "Art. L. 212-7-4. - Regulated entities belonging to a financial conglomerate are subject to additional monitoring under the conditions set out in sections L. 212-7-4 to L. 212-7-20, without prejudice to the sectoral rules applicable to them.
    "Art. L. 212-7-5. - I. - A financial group constitutes a financial conglomerate when the following conditions are met:
    « 1° A regulated entity is at the head of the group or one of the subordinate organizations of the group at least is a regulated entity and:
    “(a) In the case where a regulated entity is at the head of the group, it is either the reference agency of a financial sector entity or an entity that holds an interest in an entity of the financial sector or an entity related to an entity of the financial sector within the meaning of Article L. 212-7-1 (7°);
    “(b) In the case where there is no regulated entity at the head of the group, the activities of the group are carried out mainly in the financial sector;
    « 2° At least one of the group's entities belongs to the insurance sector and at least one belongs to the banking sector and investment services;
    « 3° The consolidated or aggregated activities of the group's entities in the insurance sector and the consolidated or aggregated activities of the entities in the banking and investment services sector are important.
    “II. - Regulation:
    « 1° The thresholds from which the activities of a group are considered to be primarily in the financial sector;
    « 2° The thresholds from which activity in each sector is considered important;
    « 3° The thresholds, criteria or conditions under which the competent authorities concerned may agree not to consider the group as a financial conglomerate or not to apply the provisions on supplementary monitoring.
    "III. - Any subgroup of a financial group that meets the criteria set out in I of this Article shall be exempted from the supplementary monitoring regime when it belongs to a group identified as a financial conglomerate subject to additional monitoring. However, the conglomerate coordinator or, where appropriate, the designated coordinator pursuant to section L. 212-7-9 for the complementary monitoring of the subgroup may submit by a reasoned decision the subgroup to the complementary monitoring regime under the conditions prescribed by regulation.
    "Art. L. 212-7-6. - The control commission referred to in Article L. 510-1, the bank commission, the Autorité des marchés financiers, in liaison, if any, with the supervisory authorities of the regulated entities of the Member States or other States parties to the agreement on the European Economic Area, identify the groups entering the field of the complementary monitoring of the financial conglomerates and exchange for this purpose any useful information to the fulfilment of their respective missions.
    "When a group has been identified as a financial conglomerate and the control board referred to in section L. 510-1 is designated, in accordance with the provisions of section L. 212-7-9, as the supplementary monitoring coordinator, it shall inform the group head entity or, if not, the regulated entity that displays the highest balance sheet in the largest financial sector of the group. It also informs the competent authorities who have approved the regulated entities of the group and the competent authorities of the Member State or the other State party to the agreement on the European Economic Area in which the financial company holding joint has its head office, as well as the European Commission.
    "Art. L. 212-7. - I. - Complementary monitoring at a conglomerate level applies to any regulated entity meeting one of the following criteria:
    « 1° It is the head of the conglomerate;
    « 2° It has as its reference agency a joint holding financial company with its head office in a Member State or in another State Party to the agreement on the European Economic Area;
    « 3° It is linked to another financial sector entity within the meaning of Article L. 212-7-1 8th.
    “II. - In cases other than those mentioned in I and section L. 212-7-18, where persons hold participation in a regulated entity or entities, or have a link of participation with those entities, or have a significant influence on them that is not a result of participation or a link of participation, the competent authorities concerned shall, by mutual agreement, determine in respect of the objectives of the regulated financial surveillance as a whole, if and to what extent, a complementary monitoring
    "To apply this additional monitoring, the conditions set out in 2° and 3° of I of Article L. 212-7-5 shall be met.
    "Art. L. 212-7-8. - Regulated entities belonging to a financial conglomerate are subject, under conditions specified by regulation, to additional requirements for the adequacy of equity, transactions between the various entities of the conglomerate, concentration and risk management and internal control. The co-ordinator of the competent authorities of one of the Member States or other States parties to the European Economic Area that meets the criteria defined by regulation is the coordinator.
    "Art. L. 212-7-9. - I. - The coordinator is the competent authority responsible for the coordination and exercise of the complementary monitoring. The co-ordinator of the competent authorities of one of the Member States or other States Parties to the Agreement on the European Economic Area which meets the criteria defined by regulation.
    “II. - It may decide, after consultation with the relevant authorities and the financial conglomerate, what method of calculating the additional requirements for the adequacy of the equity is applied, and decide not to include a particular entity within the scope of calculating the additional requirements for the adequacy of the equity in cases specified by the Minister responsible for the mutuality.
    "Art. L. 212-7-10. - When designated as coordinator, the supervisory board referred to in Article L. 510-1 shall, under supplementary supervision:
    “(a) Coordination of the collection and dissemination of any useful information in the normal course of business as in emergency situations, and in particular of any important information relevant to the prudential supervision of a competent authority under sectoral rules;
    “(b) The prudential control and assessment of the financial situation of a financial conglomerate;
    "(c) The assessment of the application of the rules relating to the adequacy of clean funds, the concentration of risks and transactions between the various entities of the conglomerate in accordance with the provisions of Article L. 212-7-8;
    "(d) Evaluation of the structure, organization and internal controls of the financial conglomerate;
    “e) The planning and coordination of prudential activities, in cooperation with the relevant authorities.
    "Art. L. 212-7-11. - When the co-ordinator of a financial conglomerate is an authority of another Member State or another State Party to the Agreement on the European Economic Area, the co-ordinator shall, in respect of the entities established in France, carry out the tasks defined in Article L. 212-7-10.
    "Art. L. 212-7-12. - In order to facilitate the exercise of complementary monitoring, the supervisory board referred to in Article L. 510-1 concludes with the competent authorities concerned, and, as appropriate, any other competent authority concerned, coordination agreements. These agreements are published in the Official Journal of the French Republic. They may entrust additional missions to the coordinator and specify the procedures to be followed in the context of supplementary monitoring. They may also specify the modalities for coordination with other competent authorities.
    "Art. L. 212-7-13. - The supervisory board referred to in Article L. 510-1 cooperates with the competent authorities responsible for the monitoring of regulated entities belonging to a financial conglomerate and, when it does not exercise that role, with the coordinator.
    "For the purposes of carrying out their respective functions, the competent authorities may exchange information on regulated entities belonging to a financial conglomerate, in accordance with the sectoral rules, with the central banks of the Member States or other States parties to the agreement on the European Economic Area, the European System of Central Banks and the European Central Bank.
    "The conditions for the application of this section are set by regulation.
    "Art. L. 212-7-14. - By derogation from Act No. 68-678 of 26 July 1968 on the communication of documents and information of an economic, commercial, industrial, financial or technical nature to foreign natural or legal persons, any entity established in France belonging to a financial conglomerate whose coordinator is an authority of a Member State or another State party to the agreement on the European Economic Area is required to transmit to the coordinator, at his request, any additional information that may be of interest to the European Economic Area.
    "Art. L. 212-7-15. - When the competent authorities of a Member State or another State Party to the Agreement on the European Economic Area, in specific cases, wish to verify the information relating to an entity established in France, regulated or not, owned by a financial conglomerate and referred to in Article L. 510-1, they request the supervisory board referred to in Article L. 510-1 to carry out such verification.
    "The supervisory board referred to in section L. 510-1 shall, within the scope of its jurisdiction, either by carrying out the audit itself or by permitting the authority that has submitted the application to do so, or by permitting an auditor or an expert to do so.
    "If it does not carry out the audit itself, the competent authority that has submitted the application may, if it wishes, be associated with it.
    "Art. L. 212-7-16. - Where the control board referred to in section L. 510-1, in the performance of its duties as coordinator, finds that the creditworthiness of the regulated entities belonging to a financial conglomerate may be compromised, or that the transactions between the various entities of the conglomerate or that the risk concentrations threaten the financial situation of these regulated entities, or that a regulated entity does not comply with the requirements of section L.
    « 1° One or more of the sanctions provided for in Article 1, 2, 4 and 5 L. 510-11;
    « 2° Either instead, in addition to these sanctions, a monetary penalty which must be based on the gravity of the breaches committed and cannot exceed the highest of the following two amounts:
    "3% of the non-tax revenue earned during the last fiscal year calculated over a twelve-month period by the regulated entity that made the largest turnover. This maximum is increased to 5% in the event of a new breach of the same obligation;
    "The minimum capital to which the subsidiary regulated entity of the joint holding financial company is involved. When it includes several subsidiaries that are regulated entities, the fine cap is determined by reference to the capital of the regulated entity that is in the highest minimum capital. The corresponding amounts are paid to the public treasury and are recovered as claims of the foreign state to tax and estate.
    "The control commission referred to in Article L. 510-1 may decide to defer its decision upon the expiry of a period for regulated entities or the joint holding financial company placed at the head of the group to take any action to restore or strengthen their financial balance or to correct their practices.
    "In the cases referred to in the preceding paragraphs, the provisions of the last two paragraphs of Article L. 510-11 shall apply.
    "The control commission referred to in Article L. 510-1 shall inform the competent authorities responsible for the sectoral monitoring of regulated entities of the financial conglomerate.
    "When the co-ordinator is a competent authority of a Member State or another State Party to the Agreement on the European Economic Area, the co-ordinator may pronounce against a joint holding financial company that has its seat in France, under the conditions provided for in the preceding paragraph, the sanctions provided for in this Article or take the measures provided for in its national law.
    "The competent sectoral authorities, including the supervisory board referred to in Article L. 510-1, when acting in this capacity, may use, for the purpose of supplementary monitoring, the powers of sanctions they have under sectoral monitoring with respect to regulated entities subject to their control.
    "Art. L. 212-7-17. - When a regulated entity uses its membership in a financial conglomerate to avoid, in whole or in part, the application of the sectoral rules under which it is a member, the control board referred to in Article L. 510-1 may use the powers provided for in Book V.
    "Art. L. 212-7-18. - When regulated entities belonging to a financial conglomerate have as reference body an organization whose head office is located in a State that is not a party to the agreement on the European Economic Area, the authority fulfilling the conditions set out in Article L. 212-7-9 to be a coordinator shall verify, on its own initiative or at the request of the reference agency or a regulated entity other This authority shall consult with the relevant authorities. If there is no equivalency, the provisions on supplementary monitoring are applied to these regulated entities.
    "In order to ensure the complementary monitoring of regulated entities belonging to a financial conglomerate whose parent company has its head office in a non-member State or a party to the European Economic Area, the competent authorities may also apply other methods that they consider appropriate. These methods must have been validated by the supervisory board when it meets the conditions set out in Article L. 212-7-9 to be a coordinator, after consultation with the other competent authorities concerned. The competent authorities may, inter alia, require the establishment of a joint holding financial company with its head office in a Member State or in another State Party to the Agreement on the European Economic Area and apply the provisions relating to the supplementary supervision to the regulated entities of the financial conglomerate encrypted by this joint holding financial company. The methods referred to in this paragraph shall be notified to the relevant authorities and to the European Commission.
    "Art. L. 212-7-19. - For the purpose of the supplementary monitoring provided for in this chapter, the control committee referred to in Article L. 510-1 may conclude the agreements provided for in Article L. 212-7-11 with the competent authorities of a State not party to the agreement on the European Economic Area for the control of any entity, regulated or not, belonging to a financial conglomerate. »

    Article 14


    Chapter I of Book II title I is amended as follows:
    1° Article L. 211-7 is thus completed:
    "Before an approval is granted to a mutual or union governed by Book II of this Code which is:
    “(a) Either an organization subordinate to an authorized insurer in another Member State or party to the European Economic Area Agreement;
    “(b) An organization subordinate to the reference body of an authorized insurer in another Member State or party to the European Economic Area Agreement;
    "(c) Either a body controlled by a person, physical or legal, who also controls an authorized insurer in another Member State or party to the agreement on the European Economic Area,
    the competent authorities of the other State Party to the agreement on the European Economic Area concerned are consulted. » ;
    2° After the article L. 211-7, an article L. 211-7-1 is inserted as follows:
    "Art. L. 211-7-1. - When the competent administrative authority in the matter of approval decides on an application for approval by a mutual or union that is:
    “(a) An organization subordinate to an approved credit institution or an approved investment company in a Member State or another State Party to the European Economic Area Agreement;
    “(b) An organization subordinate to the reference agency of an approved investment company or to an approved credit institution in a Member State or another State Party to the agreement on the European Economic Area;
    "(c) Enlisted by a person, natural or legal, who also controls a registered investment company or a registered credit institution in a Member State or another State Party to the Agreement on the European Economic Area,
    it consults the authority responsible for the supervision of credit institutions or investment companies. »
    3° Article L. 114-21 is supplemented by a paragraph as follows:
    "When the competent administrative authority in respect of accreditation is required to decide on the honesty, competence and experience of officials and administrators who also perform the same functions within entities other than those mentioned in the first paragraph and belonging to the same group within the meaning of Article L. 212-7-1, it shall consult with the competent authorities under these other entities. It provides these authorities with information relevant to the exercise of their missions. »

    Article 15


    Book V is thus modified:
    1° In the first paragraph of Article L. 510-3, the words: "by mutuals, unions and federations" are replaced by the words: "by mutuals, unions and federations as well as by any entity belonging to a financial conglomerate defined in Article L. 212-7-5 whose supervision is coordinated by the control commission referred to in Article L. 510-1 under the conditions provided for in Article L. 212-9"
    2° In Article L. 510-6, 8th paragraph, the words: "in a subsidiary enterprise of the mutual, union or federation or in an organization under Article L. 212-7" are replaced by the words: "in an organization subordinate to the mutual, union, federation, or in an organization under Article L. 212-7 or in a mutual, a union belonging to a conglomerate 1
    3° It is inserted in article L. 510-13, after the second paragraph, a paragraph as follows:
    "The control commission referred to in Article L. 510-1 may transmit to the central banks of the Member States or other States parties to the agreement on the European Economic Area, the European System of Central Banks, the European Central Bank and other bodies acting under their monetary competence, and, if necessary, to other public authorities responsible for the monitoring of payment systems, information intended for the fulfilment of their mission. The information received in this context is subject to professional secrecy. »

  • Chapter IV: Amendments to the Social Security Code Article 16


    Section I of Chapter III of Title III of Book IX of the Social Security Code is amended as follows:
    (a) The title of the section is replaced by the following title: "Resolvency of planning institutions and unions of planning institutions and complementary monitoring of financial conglomerates";
    (b) Section L. 933-2 is amended as follows:
    (i) The first paragraph shall be replaced by the following:
    "For the purposes of this section and legislative and regulatory provisions relating to the solvency of contingency institutions and unions of contingency institutions and to the complementary monitoring of financial conglomerates:"
    (ii) The 2° is replaced by the following:
    "The expression: "participation means holding, directly or indirectly, at least 20% of the voting rights or capital of a corporation, or a set of rights in the capital of a corporation, which, by creating a lasting connection with it, is intended to contribute to the activity of that corporation. » ;
    (iii) At 3°, after the words: "an organization that holds an interest in an organization" are added the words: "or an organization linked to another body by administrative, managerial or supervisory bodies composed mostly of the same persons"; the last sentence of the 3rd is deleted;
    (iv) The 4th becomes the 5th of the same article;
    (v) The 4th is replaced by the following:
    « 4° The term "affiliated agency" means an organization that is either subordinate or another organization in which an participation is held, or an organization linked to another organization by a relationship specified in the 6th of this article. » ;
    (c) The 6° to 12° are added:
    « 6° The term "financial group" means a set of organizations composed of a reference agency, its subordinate bodies and entities in which the reference agency or its subordinate bodies hold participations, as well as related entities in such a way that their bodies of administration, management or oversight are composed by a majority of the same persons or are placed under a single direction under a contract or statutory clauses. Institutions affiliated with a network and the central body within the meaning of Article L. 511-31 of the monetary and financial code are considered to be part of the same group for the purposes of this chapter. The same applies to entities belonging to cooperative groups governed by similar provisions in the legislation applicable to them;
    « 7° The term "regulated entity means an institution of foresight or a union of foresight institutions governed by Title III of Book IX of this Code, a credit institution or an investment company having its head office in a Member State or in another State Party to the agreement on the European Economic Area;
    « 8° The term "shared holding financial company" means a reference agency other than a regulated entity that, with its subordinate bodies, at least one of which is a regulated entity with its seat in a Member State or another State Party to the European Economic Area Agreement, constitutes a financial conglomerate;
    « 9° The term "financial sector" means a sector composed of one or more entities in the following sectors:
    “(a) The banking and investment services sector, which includes credit institutions, investment companies, financial institutions or financial enterprises whose headquarters is located in a Member State or in another State Party to the Agreement on the European Economic Area;
    “(b) The insurance sector, which includes insurance companies, insurance companies, mutual insurance companies, mutual unions, insurance institutions, insurance institutions, pension institutions unions, insurance parity groupings or reinsurance companies whose head office is located in a Member State or in another State party to the agreement on the European Economic Area.
    "The financial sector also includes, where appropriate, one or more mixed holding financial companies;
    « 10° The term "competent authority shall mean any national authority of a Member State or another State Party to the Agreement on the European Economic Area, by a legislative or regulatory provision, with the power to monitor, individually or at the group level, one or more of the following categories of regulated entities:
    “(a) Insurance companies;
    “(b) Mutuals;
    “(c) Provident institutions;
    "(d) Credit institutions;
    “e) Investment companies;
    « 11° The term "competent authority concerned" means:
    « 1° Any competent authority of the States responsible for the consolidated or combined sectoral monitoring of regulated entities belonging to a financial conglomerate;
    « 2° The coordinator designated in accordance with Article L. 933-4-6, if different from the authorities mentioned in point a;
    « 3° Other competent authorities when the authorities mentioned in 1° and 2° deem it appropriate;
    « 12° The term "sectoral rules" refers to the rules concerning the prudential supervision of regulated entities and the rules for the supplementary monitoring established in Article L. 933-3. » ;
    (d) After the article L. 933-4, articles L. 933-4-1 to L. 933-4-16 are inserted as follows:
    "Art. L. 933-4-1. - Regulated entities belonging to a financial conglomerate are subject to additional monitoring under the conditions set out in sections L. 933-4-1 to L. 933-4-17, without prejudice to the sectoral rules applicable to them.
    "Art. L. 933-4-2. - I. - A financial group constitutes a financial conglomerate when the following conditions are met:
    « 1° A regulated entity is at the head of the group or one of the subordinate organizations of the group at least is a regulated entity and:
    “(a) In the case where a regulated entity is at the head of the group, it is either the reference agency of a financial sector entity or an entity that holds an interest in an entity of the financial sector, or an entity related to an entity of the financial sector within the meaning of Article L. 933-2, 6°;
    “(b) In the case where there is no regulated entity at the head of the group, the activities of the group are carried out mainly in the financial sector;
    « 2° At least one of the group's entities belongs to the insurance sector and at least one belongs to the banking sector and investment services;
    « 3° The consolidated or aggregated activities of the group's entities in the insurance sector and the consolidated or aggregated activities of the entities in the banking and investment services sector are important.
    “II. - Regulation:
    « 1° The thresholds from which the activities of a group are considered to be primarily in the financial sector;
    « 2° The thresholds from which activity in each sector is considered important;
    « 3° The thresholds, criteria or conditions under which the competent authorities concerned may agree not to consider the group as a financial conglomerate or not to apply the provisions on supplementary monitoring.
    "III. - Any subgroup of a financial group that meets the criteria set out in I of this Article shall be exempted from the supplementary monitoring regime when it belongs to a group identified as a financial conglomerate subject to additional monitoring. However, the conglomerate coordinator or, where appropriate, the designated coordinator pursuant to section L. 933-4-6 for the complementary monitoring of the subgroup may submit by a reasoned decision the subgroup to the complementary monitoring regime under the conditions prescribed by regulation.
    "Art. L. 933-4-3. - The control commission referred to in Article L. 951-1, the bank commission, the Autorité des marchés financiers, in liaison, if any, with the supervisory authorities of the regulated entities of the Member States or other States parties to the agreement on the European Economic Area, identify the groups within the scope of the complementary monitoring of the financial conglomerates and exchange any information useful to the fulfilment of their respective missions.
    "When a group has been identified as a financial conglomerate and the control board referred to in Article L. 951-1 is designated, in accordance with the provisions of Article L. 933-4-6, as the supplementary monitoring coordinator, it shall inform the group head entity or, if not, the regulated entity that displays the highest balance sheet in the largest financial sector of the group. It also informs the competent authorities who have approved the regulated entities of the group and the competent authorities of the Member State or the other State party to the agreement on the European Economic Area in which the financial company holding joint has its head office, as well as the European Commission.
    "Art. L. 933-4-4. - I. - Complementary monitoring at a conglomerate level applies to any regulated entity meeting one of the following criteria:
    « 1° It is the head of the conglomerate;
    « 2° It has as its reference agency a joint holding financial company with its head office in a Member State or another State Party to the agreement on the European Economic Area;
    « 3° It is linked to another financial sector entity within the meaning of Article L. 933-2.
    “II. - In cases other than those mentioned in I and article L. 933-4-15, where persons hold a participation in a regulated entity or have a link of participation with those entities or have a significant influence on them that is not a result of participation or a link of participation, the competent authorities concerned shall, by mutual agreement, determine in respect of the objectives of the regulated financial monitoring as a whole if, and to what extent, a complementary monitoring
    "To apply this supplementary monitoring, the conditions set out in 2° and 3° of I of Article L. 933-4-2 must be met.
    "Art. L. 933-4-5. - Regulated entities belonging to a financial conglomerate are subject under conditions specified by regulation to additional requirements for the adequacy of equity, transactions between the various entities of the conglomerate, concentration and risk management and internal control.
    "Art. L. 933-4-6. - I. - The coordinator is the competent authority responsible for the coordination and exercise of the complementary monitoring. The co-ordinator of the competent authorities of one of the Member States or parties to the European Economic Area Agreement which meets the criteria defined by regulation is the coordinator.
    “II. - It may decide, after consultation with the relevant authorities and the financial conglomerate, what method of calculating the additional requirements for the adequacy of the equity is applied, and decide not to include a particular entity within the scope of calculating the additional requirements for the adequacy of the equity in cases specified by the Minister for Social Security.
    "Art. L. 933-4-7. - When designated as coordinator, the control board referred to in Article L. 951-1 shall provide, under the supplementary supervision:
    “(a) Coordination of the collection and dissemination of any useful information in the normal course of business as in emergency situations, and in particular of any important information relevant to the prudential supervision of a competent authority under sectoral rules;
    “(b) The prudential control and assessment of the financial situation of a financial conglomerate;
    "(c) The assessment of the application of the rules relating to the adequacy of clean funds, the concentration of risks and transactions between the various entities of the conglomerate in accordance with the provisions of Article L. 933-4-5;
    "(d) Evaluation of the structure, organization and internal controls of the financial conglomerate;
    “e) The planning and coordination of prudential activities, in cooperation with the relevant authorities.
    "Art. L. 933-4-8. - When the co-ordinator of a financial conglomerate is an authority of another Member State or another State Party to the Agreement on the European Economic Area, the co-ordinator shall, in respect of the entities established in France, carry out the tasks defined in Article L. 933-4-7.
    "Art. L. 933-4-9. - In order to facilitate the exercise of complementary monitoring, the control board referred to in Article L. 951-1 concludes with the relevant authorities, and, as appropriate, any other competent authority concerned, coordination agreements. These agreements are published in the Official Journal of the French Republic. They may entrust additional missions to the coordinator and specify the procedures to be followed in the context of supplementary monitoring. They may also specify the modalities for coordination with other competent authorities.
    "Art. L. 933-4-10. - The control commission referred to in Article L. 951-1 cooperates with the competent authorities responsible for the monitoring of regulated entities belonging to a financial conglomerate and, when it does not exercise that role, with the coordinator.
    "For the purposes of carrying out their respective functions, the competent authorities may exchange information on regulated entities belonging to a financial conglomerate, in accordance with the sectoral rules, with the central banks of the Member States or other States parties to the agreement on the European Economic Area, the European System of Central Banks and the European Central Bank.
    "The conditions for the application of this section are set by regulation.
    "Art. L. 933-4-11. - By derogation from Act No. 68-678 of 26 July 1968 on the communication of documents and information of an economic, commercial, industrial, financial or technical nature to foreign natural or legal persons, any entity established in France belonging to a financial conglomerate whose coordinator is an authority of a Member State or another State party to the agreement on the European Economic Area is required to transmit to the coordinator, at his request, any additional information that may be of interest to the European Economic Area.
    "Art. L. 933-4-12. - When the competent authorities of a Member State or another State Party to the Agreement on the European Economic Area, in specific cases, wish to verify information relating to an entity established in France, regulated or not, owned by a financial conglomerate and referred to in Article L. 951-1, they request the supervisory board referred to in Article L. 951-1 to carry out such verification.
    "The supervisory board referred to in section L. 951-1 shall, within the scope of its jurisdiction, either by carrying out the audit itself or by permitting the authority that has submitted the application to do so, or by permitting an auditor or an expert to do so.
    "If it does not carry out the audit itself, the competent authority that has submitted the application may, if it wishes, be associated with it.
    "Art. L. 933-4-13. - Where the control board referred to in Article L. 951-1, in the exercise of its duties as coordinator, finds that the creditworthiness of the regulated entities belonging to a financial conglomerate may be compromised, or that the transactions between the various entities of the conglomerate or that the risk concentrations are threatening the financial situation of these regulated entities, or that a regulated entity does not comply with the requirements of section L. 933-4
    « 1° One or more of the sanctions provided for in 1, 2, 4 and 4 bis of Article L. 951-10;
    « 2° Either instead, in addition to these sanctions, a monetary penalty which must be based on the gravity of the breaches committed and cannot exceed the highest of the following two amounts:
    "3% of the non-tax revenue earned during the last fiscal year calculated over a twelve-month period by the regulated entity that made the largest turnover. This maximum is increased to 5% in the event of a new breach of the same obligation;
    "The minimum capital to which the subsidiary regulated entity of the joint holding financial company is involved. When it includes several subsidiaries that are regulated entities, the fine cap is determined by reference to the capital of the regulated entity that is in the highest minimum capital. The corresponding amounts are paid to the public treasury and recovered as claims of the foreign state to tax and estate.
    "The control commission referred to in Article L. 951-1 may decide to defer its decision upon the expiry of a time limit for regulated entities or the joint holding financial company placed at the head of the group to take any action to restore or strengthen their financial balance or to correct their practices.
    "In the cases referred to in the preceding paragraphs, the provisions of the last two paragraphs of Article L. 951-10 shall apply.
    "The control commission referred to in Article L. 951-1 informs of these findings the competent authorities responsible for the sectoral monitoring of regulated entities of the financial conglomerate.
    "When the co-ordinator is a competent authority of another Member State or another State Party to the Agreement on the European Economic Area, the co-ordinator may pronounce against a joint holding financial company that has its seat in France, under the conditions provided for in the preceding paragraph, the sanctions provided for in this Article or take the measures provided for in its national law.
    "The competent sectoral authorities, including the supervisory board referred to in Article L. 951-1, when acting in this capacity, may use, for the purpose of supplementary monitoring, the powers of sanctions they have under sectoral monitoring with respect to regulated entities under their control.
    "Art. L. 933-4-14. - When a regulated entity uses its membership of a financial conglomerate to avoid, in whole or in part, the application of the sectoral rules under which it is a member, the control board referred to in Article L. 951-1 may use the powers provided for in Section V of Chapter I of Title III and Title V of Book IX of this Code.
    "Art. L. 933-4-15. - When regulated entities belonging to a financial conglomerate have as reference bodies an organization whose head office is located in a non-member State or party to the agreement on the European Economic Area, the authority fulfilling the conditions set out in Article L. 933-4-6 to be coordinator shall verify, on its own initiative or at the request of the reference agency or a regulated entity in a Member State or in any other This authority shall consult with the relevant authorities. If there is no equivalency, the provisions on supplementary monitoring are applied to these regulated entities.
    "In order to ensure the complementary monitoring of regulated entities belonging to a financial conglomerate whose parent company has its head office in a State that is not a party to the European Economic Area, the competent authorities may also apply other methods that they consider appropriate. These methods must have been validated by the supervisory board, when it meets the requirements set out in Article L. 933-4-6 to be coordinator, after consultation with other relevant authorities. The competent authorities may, inter alia, require the establishment of a joint holding financial company with its head office in a Member State or in another State Party to the Agreement on the European Economic Area and apply the provisions relating to the supplementary supervision to the regulated entities of the financial conglomerate encrypted by this joint holding financial company. The methods referred to in this paragraph shall be notified to the relevant authorities and to the European Commission.
    "Art. L. 933-4-16. - For the purposes of the supplementary monitoring provided for in this chapter, the control committee referred to in Article L. 951-1 may conclude the agreements provided for in Article L. 933-4-8 with the competent authorities of a State not party to the agreement on the European Economic Area for the control of any entity, regulated or not, belonging to a financial conglomerate. »

    Article 17


    Chapter I of title III of book IX is thus amended:
    1° Article L. 931-4 is thus completed:
    "Before an approval is granted to an institution of foresight or union governed by Title III of Book IX of this Code which is:
    “(a) Either a body subordinate to an authorized insurer in another Member State or another State Party to the Agreement on the European Economic Area;
    “(b) Either a body subordinate to the reference body of an authorized insurer in another Member State or another State Party to the agreement on the European Economic Area;
    "(c) Either a body controlled by a person, physical or legal, who also controls an authorized insurer in another Member State or another State Party to the Agreement on the European Economic Area.
    "The competent authorities of the other Member State or party to the agreement on the European Economic Area shall be consulted. » ;
    2° After the article L. 931-5, an article L. 931-6 is inserted as follows:
    "Art. L. 931-6. - When the competent administrative authority in the matter of approval decides on an application for approval by an institution or union that is:
    “(a) An organization subordinate to an approved credit institution or an approved investment company in a Member State or another State Party to the agreement on the European Economic Area;
    “(b) An organization subordinate to the reference agency of an approved investment company or an approved credit institution in a Member State or another State Party to the European Economic Area Agreement;
    "(c) Enlisted by a natural or legal person, who also controls an approved investment company or an approved credit institution in a Member State or another State Party to the Agreement on the European Economic Area;
    "She consults the supervisory authority for credit institutions or investment companies. » ;
    3° In the last paragraph of Article L. 931-9, the words: "the necessary qualification" are replaced by: "the necessary qualification and reasonableness". After the words: "an institution of foresight" are added the words: "or a parity group of foresight".
    In the same article, a last paragraph was added:
    "When the competent administrative authority in respect of accreditation is required to decide on the honesty, competence and experience of officials and administrators who also perform the same functions within entities other than those mentioned in the first paragraph and belonging to the same group within the meaning of Article L. 933-2, it shall consult with the competent authorities under these other entities. It provides these authorities with information relevant to the exercise of their missions. »

    Article 18


    In the second paragraph of Article L. 931-34, after the words: "When two or more institutions of foresight" are inserted the words: ", parity groupings of foresight".
    In the same article, after the words: "mutual or union of mutual funds under Book II of the code of mutuality" are inserted the words: ", mutual group unions".

    Article 19


    Thus, title V of Book IX is amended:
    1° In the first paragraph of Article L. 951-2, the words: "by the institutions referred to in Article L. 951-1" are replaced by the words: "by the institutions referred to in Article L. 951-1 as well as by any entity belonging to a financial conglomerate defined in Article L. 933-4-2 whose supervision is coordinated by the control commission referred to in Article L. 951-1 under the conditions specified in Article 933-4.
    2° In the eighth paragraph of Article L. 951-6, the words: "in a subsidiary enterprise of the planning institution or in an institution or undertaking under the second paragraph of Article L. 931-34" are replaced by the words: "in an organization subordinate to the planning institution, to a union of planning institutions, to a parity group of foresight or in an institution
    3° The following paragraph shall be inserted after the second paragraph of Article L. 951-13:
    "The control commission referred to in Article L. 951-1 may transmit to the central banks of the Member States or other States parties to the agreement on the European Economic Area, the European System of Central Banks, the European Central Bank and other bodies acting under their monetary competence and, if necessary, to other public authorities responsible for the monitoring of payment systems, information intended for the fulfilment of their mission. The information received in this context is subject to professional secrecy. » ;
    4° The last paragraph of the same article is thus supplemented:
    "If it does not carry out the audit itself, the competent authority that has submitted the application may, if it wishes, be associated with it. »

  • Chapter V: Final provisions Rule 20


    The provisions of this Order shall apply, for the first time, to the supervision of the accounts of the social year beginning on or during January 1, 2005.

    Article 21


    The Prime Minister, the Minister of State, Minister of Economy, Finance and Industry, and the Minister of Health and Social Welfare are responsible, each with regard to the application of this Order, which will be published in the Official Journal of the French Republic.


Done in Paris, November 12, 2004.


Jacques Chirac


By the President of the Republic:


The Prime Minister,

Jean-Pierre Raffarin

Minister of State, Minister of Economy,

finance and industry,

Nicolas Sarkozy

Minister of Health

and Social Welfare

Philippe Douste-Blazy


Download the document in RTF (weight < 1MB) Extrait du Journal officiel électronique authentifié (format: pdf, weight : 0.27 Mo) Download the document in RDF (format: rdf, weight < 1 MB)