Key Benefits:
Publics concerned: portfolio management companies and depositaries of securities collective investment organizations
Subject: rules applicable to securities collective investment organizations and modernization of the legal framework for asset management.
Entry into force: this decree comes into force on the day after the date of its publication.
Notice: This Decree introduces provisions relating to the general regime of securities collective investment organizations, their investment and operating rules.
It includes assets eligible for the assets of these organizations, which include capital or debt securities, monetary market instruments, shares or shares of securities or investment funds, deposits and financial contracts.
It also provides for the dispersal and right-of-way ratios to which securities collective investment organizations are subject, in order to ensure sufficient diversification of their portfolios and a mastery of the positions that these organizations may take with respect to the issuers they acquire the securities.
It also provides for the conditions under which a group investment agency in securities may borrow, receive guarantees, or use techniques and instruments relating to eligible financial securities or monetary market instruments, including pension transactions and assimilated acquisition and temporary assignment of securities.
References: the monetary and financial code Amended by this decree can be consulted, in its drafting, on the site Légifrance (Légifrance) http://www.legifrance.gouv.fr ).
This decree is taken for the application of articles L. 214-1 to L. 214-41 of the monetary and financial code, from theOrder No. 2011-915 of 1 August 2011 relating to securities collective investment organizations and the modernization of the legal framework for asset management.
It implements Directive 2009/65/EC of the European Parliament and the Council of 13 July 2009 on the coordination of legislative, regulatory and administrative provisions concerning certain securities collective investment bodies.
The Prime Minister,
On the report of the Minister of Economy, Finance and Industry,
In light of Commission Directive 2007/16/EC of 19 March 2007 on the implementation of Council Directive 85/611/EEC on the coordination of legislative, regulatory and administrative provisions relating to certain securities collective investment organizations (CSAs), with regard to the clarification of certain definitions;
Having regard to Directive 2009/65/EC of the European Parliament and the Council of 13 July 2009 on the coordination of legislative, regulatory and administrative provisions concerning certain securities collective investment bodies;
Vu le insurance code ;
Vu le Trade code ;
Vu le General Tax Code ;
Vu le monetary and financial code ;
Vu le code of mutuality ;
Vu le Social Security Code ;
Vu le Labour code ;
See?Order No. 2011-915 of 1 August 2011 relating to securities collective investment organizations and the modernization of the legal framework for asset management;
The State Council (Finance Section) heard,
Decrete:
Section 1 of Chapter IV of Title I of Book II of the Monetary and Financial Code is replaced by the following:
“Section 1
“Group investment organizations in securities
"Subsection 1
“Group Investment Organizations in Registered Securities in accordance with Directive 2009/65/EC of the European Parliament and the Council of 13 July 2009
“Paragraph 1
“General system of organizations
securities
"Art. R. 214-2.-For the purposes of paragraphs 2 and 3, where a group investment organization is made up of one or more investment compartments, each compartment is considered to be a separate securities collective investment organization.
“Paragraph 2
« Operating rules
"Art. R. 214-4.- It is the convening of a variable capital investment company to the general meeting of the shareholders and to the information of the shareholders on the merger or split projects in the same manner as the ones provided by the respective companies Articles R. 225-67 and R. 236-2 of the Trade Code for companies whose financial securities are not admitted to negotiations on a regulated market or whose shares are nominal.
« Les Articles R. 225-73 and R. 225-73-1 of the Commercial Code are not applicable to variable capital investment companies.
“Paragraph 3
"Invest rules
“Subparagraph 1
"General Rules of Composition of Assets
"Art. R. 214-9.-I. ― Eligible financial securities referred to in 1° of I of Article L. 214-20 meet the following conditions:
« 1° The potential loss to which their detention exposes the securities collective investment organization is limited to the amount it has paid to acquire them;
« 2° Their liquidity does not compromise the ability of the securities collective investment organization to comply with the provisions of Articles L. 214-7 and L. 214-8;
« 3° A reliable evaluation of these is available in the following form:
“(a) In the case of financial securities of 1° to 4° I of Article R. 214-11, in the form of accurate, reliable and regularly established prices, which are either market prices or prices provided by independent review systems of issuers;
“(b) In the case of financial securities under section II, R. 214-11, in the form of a periodic assessment, based on information from the issuer or from a financial analysis service referred to in section L. 544-1;
« 4° Appropriate information concerning them is available in the following form:
“(a) In the case of financial securities of 1° to 4° I of Article R. 214-11, in the form of specific, complete and regularly provided information to the market on the financial title concerned or, where applicable, on the assets underlying this instrument;
“(b) In the case of financial securities under Part II of Article R. 214-11, in the form of specific information and regularly provided to the securities collective investment organization on the financial instrument in question or, where applicable, on the assets underlying this instrument;
« 5° They are negotiable;
« 6° Their acquisition is consistent with the management objectives or investment policy of the securities collective investment organization, as set out in the information documents for subscribers.
« 7° The risks involved are considered appropriately by the risk management process of the securities pooling organization.
"For the purposes of 2° and 5° of this I, the financial instruments under 1° to 3° of I of Article R. 214-11 are presumed not to compromise the capacity of the securities collective investment agency to comply with the provisions of Articles L. 214-7 and L. 214-8 and are presumed to be negotiable unless the securities collective investment organization has different information.
“II. ― Are assimilated to eligible financial securities the shares or shares of collective investment bodies of French or foreign law or investment funds of foreign law of a closed type that meet the following criteria:
« 1° These shares or shares respect the conditions mentioned in I;
« 2° The collective investment organization or investment fund is subject to corporate governance mechanisms applied to corporations;
« 3° When financial management is exercised by another entity on behalf of the collective investment organization or investment fund, the entity is subject to national regulations to ensure the protection of investors;
"III. ∙ Financial instruments that meet the following criteria are considered to be eligible financial securities:
« 1° They respect the conditions mentioned in I;
« 2° They are dependent on other assets or related to the performance of other assets, which may be different from those mentioned in L. 214-20.
"Art. R. 214-10.-The monetary market instruments mentioned in 2° I of Article L. 214-20 meet the following conditions:
« 1° They meet at least one of the following criteria:
“(a) They have a maturity at the program up to 397 days;
“(b) They have a residual maturity of up to 397 days;
"(c) Their yield is subject to regular adjustments, at least every 397 days, in accordance with the conditions of the monetary market;
"(d) Their risk profile, particularly with respect to credit risk and interest rate risk, corresponds to those of instruments that have a residual maturity or maturity, respectively, in accordance with that referred to in a and b, or whose performance is adjusted in accordance with those mentioned in c.
« 2° They may be disposed of at a limited cost within a short and appropriate period, given the obligation of the securities collective investment agency to redeem or repay its shares or shares at the request of any holder or shareholder.
"3° there are accurate and reliable assessment systems that meet the following criteria:
“(a) They allow the securities collective investment organization to calculate a net inventory value corresponding to the value to which the financial instrument held in the portfolio could be exchanged between well-informed and consenting parties, as part of a transaction conducted under normal competition conditions;
“(b) They are based on either market data or evaluation models, including amortized cost-based systems. These models should not lead to significant deviations from the instrument's market value.
"The conditions referred to in 2° and 3° are deemed to be satisfied for instruments of the monetary market falling within 1° to 3° of I of Article R. 214-11 unless the securities collective investment agency has information leading to different conclusions.
"Art. R. 214-11.-I. ― Eligible financial securities and monetary market instruments referred to in Article L. 214-20 are:
« 1° Eligible financial securities and instruments of the monetary market admitted to trading in a regulated market within the meaning of Article L. 422-1;
« 2° Eligible financial securities and instruments of the monetary market allowed to negotiate on another regulated market, in regular operation, recognized, open to the public and whose seat is located in a Member State of the European Union or in another State Party to the Agreement on the European Economic Area;
« 3° Eligible financial securities and instruments of the monetary market admitted to the official rating of a securities exchange of a third country or negotiated on another market of a third country, regulated, in regular operation, recognized and open to the public, provided that the stock exchange or market is not included in a list established by the Autorité des marchés financiers or that the choice of that stock exchange or market is provided for by law or by regulation or by regulation or by statute
« 4° Newly issued eligible financial securities subject to:
“(a) The terms and conditions of issuance include the undertaking that an application for admission to the official listing of a securities exchange or another regulated market, in regular, recognized and open operation to the public, will be introduced, provided that this stock exchange or market is not included in a list established by the Autorité des marchés financiers or that the choice of that stock exchange or market is provided for by law or by regulation or by the securities regulations of the collective investment organization;
“(b) The admission referred to has been obtained within one year of the program.
« 5° Both instruments of the monetary market referred to in 2° I of Article L. 214-20, other than those negotiated in the regulated markets within 1° to 3°, provided that the issue or issuer of these instruments are themselves subject to regulation to protect investors and savings and that these instruments also respect the conditions referred to in Article R. 214-12.
"Assimilated to securities admitted to trading in a market under this I, the negotiable debt securities issued by an issuer referred to in 1° of I of Article R. 214-12, provided that these securities comply with the condition set out in the V of this article.
“II. ― A securities collective investment organization may not employ more than 10% of its assets in eligible financial securities or monetary market instruments that do not meet the requirements set out in I.
"It cannot acquire representative certificates of precious metals.
"Art. R. 214-12.-I. ― The instruments of the monetary market mentioned in the 5th I of Article R. 214-11 are:
« 1° Issued or guaranteed by:
(a) A Member State of the European Union or another State Party to the Agreement on the European Economic Area or, for one of these States, in the case of a Federal State, one of the members of the Federation;
(b) A regional or local community of a Member State of the European Union or another State Party to the Agreement on the European Economic Area;
(c) The European Central Bank;
(d) The Central Bank of a Member State or another State Party;
(e) The European Union;
(f) The European Investment Bank;
(g) Or an international public body of which one or more member States or other States parties are party;
« 2° Emitted by a company whose securities are negotiated in the markets mentioned in 1° to 3° of the I of Article R. 214-11;
« 3° Emitted or guaranteed by an establishment subject to prudential supervision, the headquarters of which is located in a Member State of the European Union or by an establishment that meets one of the following criteria:
“(a) It is located in the European Economic Area;
“(b) It is located in a country on a list set by order of the Minister responsible for the economy;
"(c) It receives an external evaluation of an agency referred to in Article L. 544-4, meeting conditions fixed by the same order;
"(d) It is subject to and conforms to prudential rules at least as strict as those for establishments under this 3° and whose seat is located in a Member State of the European Union;
« 4° Emitted by another entity subject to investor protection rules equivalent to those provided for in 1° to 3° of this I and having the status of either a corporation whose increased capital of reserves is at least 10 million euros and presenting its annual accounts in accordance with Directive 78/660/ EEC of the Council of 25 July 1978 concerning the annual accounts of certain forms of societies, transposed by the Articles L. 123-12 to L. 123-24 of the Commercial Codean entity dedicated to the financing of a group within the meaning of Directive 83/349/ EEC of the Council of 13 June 1983 concerning consolidated accounts, comprising at least one corporation whose securities are admitted to negotiations on a regulated market within the meaning of Article R. 214-11, or of a securitization entity with a bank financing line granted by an establishment referred to in this 3°.
“II. ― The instruments of the monetary market referred to in 5° I of Article R. 214-11 meet the following criteria:
« 1° They meet one of the conditions set out in 1° of Article R. 214-10 and the criteria set out in 2° and 3° of that same article;
« 2° Appropriate information on these instruments is available, including information to properly assess credit risks related to investment in these instruments, taking into account the III, IV and V of this article;
« 3° They are freely negotiable.
"III. ∙ For instruments of the monetary market that fall within 2° and 4° of I of this article or for those issued by the regional or local authorities referred to in 1° of I or by an international public body without being guaranteed by a State or by one of the members of a federal State mentioned in 1° of I, the appropriate information, which shall allow to properly assess the credit risk associated with the instrument, shall include the following information:
« 1° Information on the issuer's issuance or program and the legal and financial situation before the issuance of the monetary market instrument;
« 2° The information mentioned in 1°, regularly updated and whenever a notable event occurs and verified by qualified third parties who do not receive instructions from the transmitter;
« 3° Available and reliable statistics on the program or program.
"IV. ∙ For instruments in the monetary market that fall within 3° of I of this article, the appropriate information that must be used to properly assess the risk of credit related to the instrument shall include the following information:
« 1° Information on the issuer's issuance or program or on the issuer's legal and financial situation prior to the issuance of the monetary market instrument;
« 2° The information mentioned at 1°, regularly updated and whenever a notable event occurs;
« 3° Available and reliable statistics on the issue or program or other data to properly assess credit risks related to investment in these instruments.
"V. ― For instruments of the monetary market that fall under 1° of I, with the exception of those that fall under III and those issued by the European Central Bank or by a central bank mentioned in 1° of I, the appropriate information that must allow to properly assess the risk of credit related to the instrument includes information regarding the issue or program of issue or concerning the legal and financial situation of the issuer before the issuance of the instrument.
"Art. R. 214-13.-The shares or shares of collective investment bodies and investment funds referred to in 3° of I of Article L. 214-20 shall include the shares or shares of collective investment bodies in securities of French or foreign law approved in accordance with Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 or the shares or shares of other organizations of collective investment of French or foreign law or
« 1° These other collective investment bodies or foreign investment funds are subject to monitoring equivalent to that applicable to registered securities collective investment organizations in accordance with Directive 2009/65/EC of the European Parliament and the Council of 13 July 2009 and that cooperation between the Autorité des marchés financiers and the supervisory authority of that organization or fund is sufficiently guaranteed;
« 2° The level of protection guaranteed to holders of shares of these other collective investment bodies or foreign investment funds is equivalent to that provided for holders of shares of a securities collective investment agency approved in accordance with Directive 2009/65/ CE of the European Parliament and of the Council of 13 July 2009 and, in particular, that the rules relating to the division of assets, loans, loans and sales of securities and instruments discovered
« 3° Their activity is subject to semi-annual and annual reports that allow an assessment of assets and liabilities, benefits and operations over the reporting period;
« 4° Collective investment organizations in securities approved in accordance with Directive 2009/65/ CE of the European Parliament and the Council of 13 July 2009, collective investment agencies or foreign investment funds whose acquisition is envisaged cannot, under their regulations or their statutes, invest more than 10% of their assets in shares or shares of other collective investment or investment funds in a global manner.
"Art. R. 214-14.-The deposits mentioned in the 4th of the I of Article L. 214-20 are deposits made with a repayable credit institution on request or that may be withdrawn and having a maturity of less than or equal to twelve months, provided that the credit institution has its registered seat in a Member State of the European Union or in another State Party to the agreement on the European Economic Area, or
“Subparagraph 2
“Rules applicable to financial contracts, acquisitions
and temporary assignments of financial instruments and guarantees
"Art. R. 214-15.-A securities collective investment agency may enter into financial contracts referred to in 5° of I of Article L. 214-20 entered into the markets mentioned in 1°, 2° or 3° of I of Article R. 214-11 or negotiated voluntarily, subject to the following conditions:
« 1° These include one or more of the following:
“(a) Assets referred to in Article L. 214-20, including instruments with one or more characteristics of these assets;
“(b) Interest rates;
“(c) exchange rates or currencies;
"(d) Financial indices, meeting the conditions set out in Article R. 214-16;
« 2° The counterparties of transactions on voluntary financial contracts are persons referred to in the second paragraph of Article R. 214-19;
« 3° They may, at the initiative of the securities collective investment organization, be at any time sold, liquidated or terminated by a symmetrical transaction, at their market value, and are subject to a reliable and verifiable assessment on a daily basis, which is not based solely on the market prices given by the counterparty and meets the following criteria:
“(a) The evaluation is based on a current market value, which has been reliably established for the instrument or, if such value is not available, on a valuation model using a recognized and appropriate method;
“(b) The evaluation audit is conducted by one of the following entities:
“(i) An appropriate third party, independent of the co-contractor, which conducts the audit on an appropriate frequency and such terms as the securities collective investment organization may control it;
“ii) A service of the securities collective investment organization that is independent of the operational functions and able to carry out this audit.
"The financial contracts referred to in this section are as excluding financial contracts relating to goods.
"Art. R. 214-15-1.-The underlying investment in financial contracts is taken into account in the application of the provisions of Article R. 214-21 and R. 214-24.
"When these financial contracts are based on indices that meet the conditions set out in Article R. 214-16, it may be derogated from the provisions of the first paragraph.
"Art. R. 214-15-2.-I. ― Where an eligible financial title or monetary market instrument referred to in Article L. 214-20 has a financial contract that simultaneously meets the following three conditions, the latter shall be taken into account for the purposes of sections R. 214-15-1 and R. 214-30. These conditions are as follows:
« 1° Because of its presence, all or part of the cash flow that would otherwise involve the financial instrument in which the financial contract is included, may be modified based on an interest rate, the price of a financial instrument, a exchange rate, a price index or rate index, a rating or a credit index, or another specified variable, and therefore varies in a similar way to an autonomous derivative;
« 2° Its economic characteristics and the risks that the financial contract entails are not closely related to the economic characteristics of the financial instrument in which it is included, or to the risk profile of the financial instrument;
« 3° The financial contract has a significant impact on the risk profile and valuation of the financial instrument in which it is included.
“II. ― The eligible financial title or monetary market instrument is not deemed to include a financial contract when it includes a component that is contractually negotiable regardless of the eligible financial title or monetary market instrument. Such a component is deemed to be a separate financial instrument.
"Art. R. 214-16.-I. ― The financial indices referred to in section R. 214-15 meet the following conditions:
« 1° Their composition is sufficiently diverse in that the following criteria are met:
“(a) The index is composed in such a way that price movements or trading activities affecting one of its components do not adversely affect its overall performance;
“(b) When the index is composed of instruments referred to in Article L. 214-20, its composition complies with the diversification rules referred to in I and II of Article R. 214-22;
"(c) When the index is composed of other assets, its composition is varied according to rules equivalent to those provided for in I and II of Article R. 214-22;
« 2° They are a representative standard of the market to which they refer, in that the following criteria are met:
“(a) The index measures, in a relevant and appropriate manner, the performance of a representative set of underlyings;
“(b) The index is reviewed or re-weighted at regular intervals so that it continues to reflect the markets to which it refers, in accordance with publicly available criteria;
"(c) The underlyings are liquid enough to allow users to reproduce the index, if any;
« 3° They are the subject of an appropriate publication, in that the following criteria are met:
“(a) Their publication is based on adequate procedures for the collection of prices and subsequent calculation and publication of the value of the index, including valuation procedures for components for which no market prices are available;
“(b) Relevant information on issues such as the calculation of the index, index weighting methodologies, index changes or any operational difficulties encountered in the provision of current or specific information is widely and in a timely manner.
“II. ― Where the composition of assets underlying financial contracts does not meet the criteria set out in I, these financial contracts are considered, when meeting the criteria set out in section R. 214-15, as financial contracts based on a combination of the assets referred to in a at c of the 1st of section R. 214-15.
"Art. R. 214-17. -A securities collective investment organization may enter into financial contracts that meet the characteristics of credit derivatives that meet the following criteria:
« 1° They allow the transfer of the credit risk associated with an asset referred to in 1° of Article R. 214-15 regardless of other risks associated with that asset;
« 2° They give rise to the delivery or transfer of assets referred to in Article L. 214-20, including in the form of species;
« 3° They meet the criteria for voluntary financial contracts, referred to in 2° and 3° of R. 214-15;
« 4° The risks involved are considered appropriately by the risk management process of the securities collective investment organization, as well as by its internal control mechanisms in the event of a risk of asymmetry of information between the securities collective investment organization and the partner, resulting from the potential access of the securities collective investment agency to information not accessible to the public regarding entities whose assets are used as underlying credits to derivatives.
"The general regulation of the Autorité des marchés financiers specifies the conditions of application of this section.
"Art. R. 214-18.-I. ― A securities collective investment organization may use the techniques and instruments that deal with eligible financial securities and monetary market instruments, including pension transactions, assimilated acquisition or temporary assignment of securities, provided these techniques and instruments are used for the effective management of the portfolio.
"In no case do these techniques and instruments lead the securities collective investment organization to deviate from its investment objectives as set out in the fund regulations, the SICAV statutes, or in the prospectus of the securities collective investment organization.
“II. – The techniques and instruments mentioned in I meet the following criteria:
« 1° They are economically appropriate in that their implementation is cost-effective;
« 2° They are used to achieve one or more of the following objectives:
“(a) Risk reduction;
“(b) Cost reduction;
"(c) Creation of additional capital or income for the securities collective investment organization;
« 3° The risks involved are considered appropriately by the risk management process of the securities pooling organization.
"III. – The operations mentioned in I also meet the following criteria:
« 1° They are carried out with a person mentioned in the second paragraph of Article R. 214-19;
« 2° They are governed by a framework convention referred to in articles L. 211-36 and L. 211-36-1;
« 3° They must comply with the denouncement rules set out in Article R. 214-15.
They shall be taken into account for the application of the general rules of composition of the asset, the right-of-way ratios, and the rules for calculating the overall risk defined in this subsection; In addition, the exposure of the organization to the risk of counterparty on the same contracting partner resulting from these transactions is cumulative with that resulting from the voluntary financial contracts with the same contracting partner for the assessment of the limits set out in III of section R. 214-21.
"Art. R. 214-19.-I. ― A securities collective investment organization may not issue credits or be guarantor on behalf of third parties.
"However, it may acquire financial instruments referred to in Article L. 214-20 not fully released.
“II. ― A collective investment agency in securities may, for the purpose of its management objective, receive or grant the guarantees referred to in Article L. 211-38, under the conditions set out in that same article, as well as receive solidarity bonds or guarantees at first request.
"The securities collective investment agency can only receive guarantees if it is granted to it by an institution having the status of depositary of the securities collective investment agency, a credit institution whose seat is established in a Member State of the Organisation for Economic Cooperation and Development or an investment company whose seat is located in a Member State of the European Union or in another State Party to the agreement on the European Economic Area-2
"When the guarantees granted by a securities collective investment organization are security rights, the act constituting these security rights defines:
« 1° The nature of the property or rights that the beneficiary of the security rights may use or dispose of. In the absence of this indication, the beneficiary may only use or dispose of deposits, liquidities or financial instruments mentioned in 1°, 2° or 3° of I of Article L. 214-20;
« 2° The maximum amount of property or rights that the beneficiary of the security rights may use or dispose of. This maximum amount cannot exceed 100% of the recipient's debt on the organization. The general regulation of the Autorité des marchés financiers specifies the modalities for calculating the beneficiary's receivable on the organization.
"The terms and conditions for the valuation of property or rights guaranteed by a securities collective investment agency are defined in the form of the guarantees or in an annexed contract between the parties. In the absence of having provided for these valuation procedures, the enforcement of the guarantees may only be related to deposits, liquidity or financial instruments mentioned in 1°, 2° or 3° of I of Article L. 214-20. The general regulation of the Autorité des marchés financiers specifies the terms and conditions for the valuation of property or rights guaranteed by the agency.
"When the guarantees take the form of deposits, they are made with a credit institution referred to in R. 214-14. The other provisions of section R. 214-14 do not apply to these deposits, within the scope of the consideration risk coverage requirements.
"Art. R. 214-20.-A securities collective investment organization may not make undiscovered sales of financial instruments referred to in Article L. 214-20.
“Subparagraph 3
"Invest ratios
"Art. R. 214-21.-I. ― A collective investment organization in securities cannot invest more than:
"1° 5% of its assets in eligible financial securities or monetary market instruments issued by the same entity;
"2° 20% of its assets in eligible financial securities or monetary market instruments issued by several entities forming the same issuer as defined in VIII;
"3° 20% of its assets in deposits placed with the same entity.
"The risk of counterparty of the securities pooling agency on the same contracting partner resulting from the voluntary-licensing financial contracts cannot exceed 10% of its assets when the contracting party is a credit institution referred to in the second paragraph of Article R. 214-19 and 5% in other cases.
“II. ― By derogation from the 5% limit set at 1° of I, a securities collective investment organization may invest up to 10% of its assets in eligible financial securities or monetary instruments issued by the same entity. However, the total value of eligible financial securities and monetary market instruments held by the securities collective investment organization to the entities in which it invests more than 5% of its assets does not exceed 40% of its assets.
"III. ― Notwithstanding the individual limits set out in I and II, a group investment organization in securities cannot combine, where it would result in the investment of more than 20% of its assets in the same entity, many of the following:
« 1° Investments in eligible financial securities or monetary market instruments issued by that entity;
« 2° Deposits with that entity; or
« 3° Risks arising from transactions on voluntary financial contracts with that entity.
"IV. - By derogation from the 5% limit set at 1° of I, a group investment agency in securities:
« 1° Can use in eligible financial securities and instruments of the monetary market mentioned in 1° or 2° of the I of Article L. 214-20 issued or guaranteed by the same entity up to 35% of its assets if these securities or instruments are issued or guaranteed by a Member State of the European Union or another State Party to the Agreement on the European Economic Area, by its territorial public authorities, by a third country or by international public bodies Member States of the European Union or other States parties to the Agreement on the European Economic Area or if they are securities issued by the Social Debt Fund;
« 2° Can use in bonds issued by the same entity up to 25% of its assets if these securities are land obligations issued by the land credit companies pursuant to 2° I of Article L. 515-13 or obligations issued by a credit institution which has its registered office in a Member State of the European Union or in another State Party to the agreement on the European Economic Area and which is legally subject to public surveillance In particular, the amounts arising out of the issuance of these obligations are invested, in accordance with the law, in assets that, during the entire period of validity of the obligations, may cover claims arising out of the obligations and that are assigned by privilege to the reimbursement of capital and to the payment of accrued interest in the event of a failure of the issuer. The exemption provided for in this 2° also applies to obligations issued by a credit institution whose exclusive purpose is to refinance promissory notes in accordance with the provisions of sections L. 313-42 to L. 313-49, issued to mobilise long-term claims representative of housing loans, provided that these obligations have identical characteristics to that of the notes.
"V. ― When a securities collective investment organization invests more than 5% of its assets in the obligations mentioned in 2° of IV and issued by the same entity, the total value of these investments does not exceed 80% of the value of the assets of the securities collective investment organization.
"VI. ― Eligible financial securities and monetary market instruments mentioned in IV are not taken into account for the application of the 40% limit set out in II.
« VII. ― The limits set out in I to IV may not be combined and, therefore, investments in eligible financial securities or monetary instruments issued by the same entity or in financial deposits or contracts entered into with that entity in accordance with I to IV of this section may not in any case exceed a total of 35% of the assets of the securities collective investment organization.
« VIII. - Companies that are grouped for consolidation of accounts, as defined in Directive 83/349/EC of 13 June 1983 or in accordance with recognized international accounting rules, are considered to be a single issuer for the calculation of the limits provided for in this section.
"Art. R. 214-22.-I. ― By derogation from the limit of 10% set out in II of section R. 214-21, a collective investment agency in securities may employ up to 20% of its assets in shares and securities of the same issuer when, in accordance with the regulations of the fund or the statutes of the SICAV, the investment policy of the collective investment agency in securities is to reproduce the composition of an index of shares or securities included in the securities
« 1° The composition of the index is sufficiently diverse;
« 2° The index is a representative standard of the market to which it refers: the supplier uses a recognized method that does not, as a general rule, exclude a large market issuer to which the index refers;
« 3° The method of establishing and disseminating this index meets the following conditions:
“(a) It is accessible to the public;
“(b) Its supplier is independent of the securities collective investment organization that reproduces its composition. When the index supplier and the securities collective investment organization are part of the same group within the meaning of theArticle L. 233-16 of the Commercial Codeany provision is made to avoid conflicts of interest.
“II. ― By derogation from I, a securities collective investment organization may extend the limit of 20% of its assets to 35% for the same issuer when it is justified by exceptional market conditions, particularly in regulated markets where certain securities or instruments in the monetary market are largely dominant. Investment to this limit is permitted only for one issuer.
"Art. R. 214-23.-By derogation from Article R. 214-21, a collective investment organization in securities may place, according to the principle of risk distribution, up to 100% of its assets in various eligible financial securities and instruments of the monetary market referred to in 1° of Article R. 214-21.
"These eligible financial securities and money market instruments belong to at least six different programs, without the value of the same program exceeding 30% of the total asset of the securities collective investment organization.
"Art. R. 214-24. -A securities collective investment organization may employ up to 20% of its assets in shares or shares of the same securities collective investment organization or collective investment agency of French or foreign law or investment funds constituted on the basis of a foreign right referred to in 3° of Article L. 214-20.
"Art. R. 214-25.-I. ― Investments in shares or shares of collective investment bodies of French or foreign law or foreign investment funds other than securities collective investment organizations approved in accordance with Directive 2009/65/EC of the European Parliament and the Council of 13 July 2009 may not exceed, in a total, 30% of the assets of the securities collective investment organization.
“II. ― Where a securities collective investment organization has acquired shares or shares of another securities collective investment organization, a French or foreign collective investment organization or a foreign investment fund, it does not combine the assets of these securities collective investment organizations, such collective investment organizations or investment funds for the purposes of the limits set out in section R. 214-21.
"Art. R. 214-26.-I. ― A variable capital investment corporation or a management corporation acting for all the securities collective investment organizations it manages, does not have shares with the right to vote enabling it to exert a significant influence on the management of a issuer.
“II. ― A collective investment organization in securities may not hold:
"1° 10% of capital securities without the right to vote of the same entity;
"2° 10% of debt securities of the same entity;
"3° 25% of the shares or shares of the same French or foreign collective investment agency or of the same foreign investment fund;
"4% of monetary market instruments issued by the same entity.
"The limits set out in 2°, 3° and 4° may not be met at the time of the acquisition if, at that time, the gross amount of debt securities or instruments of the monetary market, or the net amount of securities issued, cannot be calculated.
"III. - It may be derogated from I and II of this article with respect to:
« 1° Eligible financial securities and monetary market instruments issued or guaranteed by a Member State or its territorial public authorities;
« 2° Eligible financial securities and monetary market instruments issued or guaranteed by a third country;
« 3° Eligible financial securities and monetary instruments issued by an international public body including one or more Member States are a party;
« 4° The shares held by a securities collective investment organization in the capital of a corporation incorporated in a third country investing its assets primarily as securities of issuers having their registered office in that country where, under the legislation of the latter, such participation constitutes the sole possibility for the securities collective investment agency to invest in securities of the securities of that country;
« 5° The shares held by one or more investment companies in the capital of subsidiary companies carrying only management, advice or marketing activities in the country where the subsidiary is established, with respect to the redemption of shares at the request of the holders exclusively for its account or for their account.
"The derogation referred to in the 4th is applicable only on the condition that the corporation of the third country respect in its investment policy the limits set out in Articles R. 214-21, R. 214-24, R. 214-25 and I and II of this Article.
"Art. R. 214-27.-I. ― Asset composition rules and risk division rules must be respected at any time. However:
« 1° Securities collective investment organizations are not required to comply with the limits set out in this subparagraph in the exercise of subscription rights relating to financial securities or monetary market instruments that are part of their assets;
« 2° Newly registered securities collective investment organizations may waive R. 214-21 to R. 214-25 for a period of six months following the date of their approval.
“II. ― If a exceedance of the limits set out in this sub-paragraph occurs independently of the will of the collective investment agency in securities or as a result of the exercise of subscription rights, the latter shall, in its sales operations, have the priority objective of regularizing this situation, taking into account the interests of shareholders or shareholders.
"Art. R. 214-28.-I. ― A form-based securities collective investment organization is a securities collective investment organization that meets the following two conditions:
« 1° It is managed passively and its management objective is to achieve, at the expiry of a specified period, an amount determined by mechanical application of a predefined calculation formula, referring to financial market indicators or financial instruments, as well as, where appropriate, to distribute predefined remuneration in regulatory documents;
« 2° It holds at any time the assets necessary to achieve its management objective.
“II. ∙ For securities collective investment organizations under this section, compliance with the limits set out in section R. 214-15-1 is estimated at the date of conclusion of financial contracts.
"III. ― The provisions of section R. 214-22 apply to a securities collective investment organization under this section whose assets replicate the composition of an index.
"Art. R. 214-29.-I. ― A collective investment agency in securities cannot use the loan.
"It can, however, acquire currency through cross-currency loans.
“II. ― By derogation from I, a securities collective investment organization may borrow as long as these borrowings:
« 1° Holds temporary employees and accounts for up to 10% of its assets; or
« 2° Allow the acquisition of real property necessary for the direct exercise of its activities and represent, in the case of a variable capital investment corporation, a maximum of 10% of its assets.
"When a group investment agency in securities borrows under 1° or 2°, these borrowings do not exceed, in total, 15% of its assets.
“Subparagraph 4
"Global risk calculation
"Art. R. 214-30.-The securities collective investment organization ensures that its overall risk associated with financial contracts does not exceed the total net value of its portfolio.
"The overall risk is calculated taking into account the current value of the underlying assets, the risk of counterparty, the future evolution of the markets and the time available to liquidate the positions.
"This calculation also takes into account the overall risk of the master securities collective investment organization in relation to financial contracts.
"The general regulation of the Autorité des marchés financiers specifies the conditions for calculating global risk.
“Paragraph 4
« Collective investment organizations
Master and nurse securities
"Art. R. 214-31.-The investment of a securities collective investment organization in another securities collective investment organization may not exceed the limit set out in section R. 214-24 unless it has been authorized by the Autorité des marchés financiers to form a collective investment agency in securities that is fed.
"Art. R. 214-31-1.-I. ― By derogation from sections R. 214-24 and R. 214-26, a foster securities collective investment organization may employ up to 100% of its assets in shares or shares of the same master securities collective investment organization and hold up to 100% of its shares or shares.
II.-The condition referred to in paragraph 4 of section R. 214-13 is not applicable to the collective investment organization in master securities whose acquisition is contemplated by the collective investment agency in foster securities.
"Subsection 2
“Other collective investment organizations
securities
“Paragraph 1
“Common provisions
"Art. R. 214-32.- Except as specific provisions of this subsection, the provisions of sections R. 214-2 to R. 214-12, R. 214-14 to R. 214-19, R. 214-21 to R. 214-24, Part II of R. 214-25, and sections R. 214-26 to R. 214-30 are applicable to collective investment organizations in securities governed by this subsection.
"Art. R. 214-33.-By derogation from the provisions of section II of R. 214-11, the assets of a securities collective investment organization governed by this subsection may also include, within the limit of 10% provided for in section II of that same section:
« 1° Subscription vouchers;
« 2° Cash vouchers;
« 3° promissory notes;
« 4° Mortgage tickets;
« 5° shares or shares of foreign investment funds meeting the criteria set out in the general regulation of the Autorité des marchés financiers;
« 6° Shares or shares of securities collective investment organizations:
“(a) Foster securities collective investment organizations referred to in articles L. 214-22 and L. 214-26;
“(b) Collective investment organizations in securities benefiting from a reduced procedure referred to in Article L. 214-35 in its drafting prior to 2 August 2003;
"(c) Securities collective investment organizations governed by this section that invest more than 10% of their assets in shares or shares of other collective investment or investment funds;
"(d) Registered securities investment organizations reserved for certain investors referred to in Article L. 214-33;
“e) Collective investment organizations in contractual securities referred to in Article L. 214-36;
“(f) Common Risk Investment Funds referred to in Article L. 214-28, Joint Investing Funds in Innovation referred to in Article L. 214-30, Community Investment Funds referred to in Article L. 214-31 and Joint Venture Investment Funds Benefiting from a Relief Procedure referred to in Article L. 214-38;
“(g) Common Future Market Response Funds referred to in Article L. 214-42 in its drafting prior to the date of publication of theOrder No. 2011-915 of 1 August 2011 relating to securities collective investment organizations and the modernization of the legal framework for asset management;
« 7° Eligible financial securities and instruments of the monetary market that do not meet the conditions referred to in Article R. 214-11;
« 8° Shares or shares of real estate collective investment organizations or foreign organizations referred to in e of Article L. 214-92.
"In addition, within the 10% limit referred to in the first paragraph, the shares or shares of securities collective investment organizations or investment funds themselves invested to more than 10% in shares or shares of securities collective investment organizations or investment funds.
"For the purposes of this sub-section, the shares of a fixed capital property preponderance corporation referred to in Article L. 214-120 shall be within 8°.
"Art. R. 214-33-1.-By derogation from section R. 214-26, a securities collective investment organization governed by this subsection may hold up to 25% of the same class of financial securities of the same issuer when that issuer is a joint venture referred to in the same class of securities.Article L. 3332-17-1 of the Labour Code.
"Art. R. 214-33-2.-By derogation from 1° and the last paragraph of section R. 214-15, contracts entered into by a securities collective investment organization governed by this subsection may include:
“(a) On goods. Exposure to the same contract for goods cannot exceed 10% of the asset. Significant correlations between contracts for goods entered into by the agency are taken into account in assessing this limit. The termination of these contracts may only result in the transfer of eligible items to the assets of a securities collective investment organization under this subsection;
“(b) On assets referred to in R. 214-33.
"Art. R. 214-33-3.-I. ― By derogation from sections R. 214-24 and R. 214-26, a foster securities collective investment organization may employ up to 100% of its assets in shares or shares of the same master securities collective investment organization and hold up to 100% of its shares or shares.
“II. ― Foster securities collective investment organizations may enter into financial contracts under the conditions set out in R. 214-15 to R. 214-17 and the last paragraph I of R. 214-21.
"Art. R. 214-34.-I. ― The provisions of this section shall apply to securities collective investment organizations under this subsection and whose assets include more than 10% of shares or shares of securities collective investment organizations or investment funds referred to in 3° I of Article L. 214-20.
“II. ― A securities collective investment organization governed by this section may invest:
« 1° Up to all of its assets in:
“(a) Shares or shares of registered securities collective investment bodies in accordance with Directive 2009/65/EC of the European Parliament and the Council of 13 July 2009;
“(b) Shares or shares of collective investment organizations in general-purpose securities falling under Article L. 214-27 or collective investment organizations in securities with a reduced investment rules referred to in Article R. 214-83 that do not use the exemptions provided for in Article R. 214-84 and Article R. 214-85;
"(c) Shares or shares of collective investment bodies or investment funds governed by foreign law where these organizations or investment funds have been the subject of a bilateral agreement between the Autorité des marchés financiers and their supervisory authority on the equivalence of their rules of security and transparency to the French rules and that an instrument for the exchange of information and mutual assistance has been put in place in the field of third-party management of assets
« 2° Up to 30% of its assets in shares or shares of collective investment bodies or investment funds, other than those under the 1°, meeting the conditions set out in 1° to 4° of Article R. 214-13.
"III. ― By derogation from section R. 214-24, a securities collective investment organization governed by this section may employ up to 50% of its assets in shares or shares of the same securities collective investment organization, a collective investment organization or investment fund referred to in II.
"By derogation from section R. 214-26, a securities collective investment organization governed by this section may hold up to 100% of the shares or shares of the same securities collective investment organization, a collective investment organization or investment fund referred to in Part II.
“Paragraph 2
« Collective investment organizations
securities intended for any subscriber
“Subparagraph 1
"Common Risk Investment Funds
"Art. R. 214-35.-I. ― For the assessment of the 50% quota in Article L. 214-28 I:
« 1° The numerator consists of the subscription or acquisition price of the securities or rights of the portfolio and the book value of the other assets.
"The denominator is constituted by the amount released from subscriptions in the fund. This amount is reduced from the share buybacks requested by the carriers and made under such conditions as the settlement of the fund does not allow to oppose the provisions of Article L. 214-28 of the VII and increased the reinvested sums by the shareholders in accordance with the reinvestment obligation provided for in Article L. 214-28Article 163 quinquies B of the General Tax Code ;
« 2° When a corporation whose securities or rights are included in the 50% quota is subject to judicial liquidation, the securities or rights cancelled are deemed to be held in assets for their subscription or acquisition price for five years from the liquidation closing judgment; where a company whose titles or rights are included in the 50% quota is experiencing difficulties in jeopardizing the continuity of operation within the meaning ofArticle L. 234-1 of the Commercial Code and is subject to amicable liquidation under the conditions defined in Articles L. 237-1 to L. 237-13 of the Commercial Code or a capital reduction followed by an increase in capital under the conditions defined in theArticle L. 224-2 of the Commercial Code, the securities or fees cancelled shall be deemed to be held at the asset for their subscription and acquisition price for five years from the decision of the competent bodies of the corporation;
« 3° When securities or rights included in the 50% quota are disposed of, the assigned securities or rights are deemed to be held on the assets for their subscription or acquisition price for a period of two years from the date of the assignment. Beyond this period, where the fund proceeds to a distribution or redemption of shares in the amount of the proceeds of the assignment, the amount of the distribution or redemption that has not been deducted under the provisions of 1° is deducted from the denominator within the limit of the subscription price or acquisition of the assigned securities or rights; as from the date on which the fund may enter into a pre-liquidation period as defined in sections R. 214-40 and R. 214-41, the denominator may, if any, be reduced from the amount of the distribution of the sale of securities or rights not included in the 50% quota within the limit of the subscription or acquisition price of the same securities or rights, provided that the new investment quota has been
« 4° Where securities or rights received in exchange for securities or rights included in the 50% quota are not themselves eligible for these quotas, the securities or rights returned to the exchange are deemed to be held on the assets for their subscription or acquisition price for two years from the date of the exchange or until the end of the period during which the asset corporation has undertaken to retain the securities or rights in that fund if
« 5° New subscriptions in a common risk investment fund are taken into account from the closing inventory of the year following the year in which they were released;
« 6° In case of non-compliance with the 50% quota in a semi-annual inventory, the fund is not dropped from its plan if it regulates its situation at the latest in the following inventory subject to, on the one hand, that the management company informs the tax service to which it deposits its results return within the month following the inventory having revealed that the quota has not been met and, on the other hand, is missing.
« II. ― 1° For the purposes of the III of Article L. 214-28, the stock capitalization of a corporation is determined by the proceeds of the number of its capital securities admitted to the negotiation at the opening of the trading day before that of the investment by the average of the opening courses of the sixty trading days prior to that of the investment.
"However, when, for the first time in these sixty days, the company's capital securities are admitted to the negotiation, the average is that of the opening days of negotiations since the day of admission to the negotiation until the day before that of the investment. The same is true in the event of an increase in capital or merger transaction, splitting or partial intake of assets carried out during these sixty days and having entered into the negotiation of new capital securities of the absorbent or beneficiary corporation.
« 2° By derogation from the provisions of 1°, in the event of an investment on the day of the first listing of the capital securities of a corporation, its stock market capitalization is determined by the product of the number of capital securities so admitted to the negotiation by the price to which these securities are placed in the public, namely the price to which these securities are sold to the public before the first rating.
"In the same way, in the event of an investment on the day that the company's new capital securities are allowed to be negotiated as a result of an increase in capital or a merger, splitting or partial inflow of assets, its stock market capitalization is determined by the product of the total number of capital securities of the absorbent or beneficiary corporation admitted to the negotiation after the transaction by the closing course of the last trading day
« 3° On the day of the investment referred to in 1° and 2° means the day on which the capital securities admitted to the negotiation are acquired or subscribed.
"Art. R. 214-36. I. ― The provisions of sections R. 214-11 to R. 214-14, R. 214-21, R. 214-23 to R. 214-27, R. 214-29, R. 214-33, R. 214-33-1 and R. 214-34 are not applicable to joint venture funds.
“II. ― Assets of a joint venture fund may be used to:
"1° 10% at most in securities of the same transmitter;
"2° 35% in shares or shares of the same securities collective investment organization;
"A maximum of 3° 10% in shares or shares of registered securities collective investment organizations reserved for certain investors under Article L. 214-33;
"4° 10% not more in title or rights of the same entity referred to in 2° of II of Article L. 214-28 not falling within the other provisions of Article L. 214-28, nor of Article L. 214-30, nor of Article L. 214-31.
"III. ― Common risk investment funds are not considered for the purposes of section R. 214-26.
"IV. ― A common risk investment fund shall comply with the provisions of this section upon the expiry of a two-year period from the date of its approval by the Autorité des marchés financiers.
"Art. R. 214-36-1.-A common risk investment fund may borrow within 10% of its assets.
"Art. R. 214-37.-For the assessment of the limits set out in article R. 214-36:
« 1° Where the securities held by the fund are not admitted to negotiations on a market of financial instruments within the meaning of Article L. 214-28, they are retained for their acquisition or subscription value;
« 2° Where securities held by the fund are exchanged with securities not admitted to the negotiations on a market of financial instruments within the meaning of Article I L. 214-28, the securities received for the exchange by the fund are taken into account in the asset for the subscription or acquisition of the securities traded;
« 3° Where securities held by the fund are admitted to the negotiations on a market of financial instruments within the meaning of Article L. 214-28, or when they are exchanged with securities admitted to the negotiations on a market of financial instruments within the meaning of Article L. 214-28, the securities held or handed over to the exchange by the fund shall be deemed to be held on the assets for the acquisition of subscription or At the end of this period, the ratio of Article R. 214-36 to 1° of II is increased to 20% and is appreciative of the securities held or received in exchange as any other title allowed to negotiations on a market of financial instruments within the meaning of Article L. 214-28;
« 4° Where the securities or rights held by the fund are issued by an entity referred to in 2° of II of Article L. 214-28, the contractual undertaking of subscription or acquisition taken by the fund shall be entered for its amount to the numerator;
« 5° The maximum denominator of the following two amounts is the net assets of the fund or the total amount of contractual obligations for subscription or acquisition received by the fund.
"Art. R. 214-38.-For the assessment of the 15% limit referred to in 1° of II of Article L. 214-28, the maximum denominator of the two amounts is the net assets of the fund or the amount released from the subscriptions in the fund.
"Art. R. 214-39.-A joint venture fund:
« 1° No more than 35% of the capital or voting rights of the same issuer. However, because of the exercise of trade, subscription or conversion rights and in the interest of shareholders, this limit may be temporarily exceeded. In this case, the management company shall communicate to the Autorité des marchés financiers, to the depositary and to the auditor of the fund the reasons for this exceedance and the forecast schedule of regularization. Regularization must occur no later than the year following the overtaking;
« 2° Do not hold, or undertake to subscribe or acquire, more than 20% of the total amount of the securities or rights and contractual obligations of the same entity referred to in 2° of II of Article L. 214-28 not falling within the other provisions of Article L. 214-28, neither Article L. 214-30 nor Article L. 214-31;
« 3° No more than 10% of the shares or shares of a securities collective investment organization that do not fall within 2° of II of Article L. 214-28.
"Art. R. 214-40.-After a statement to the Autorité des marchés financiers and to the tax service to which its management company files its return of results, a joint venture investment fund may enter into a pre-liquidation period:
« 1° From the beginning of the year following the closing of its fifth fiscal year if, since the expiry of a period of subscription of no more than eighteen months immediately following the date of its constitution, no subscriptions have been made from shares other than those made with its shareholders who have subscribed during the period of eighteen months referred to above:
“(a) To enable it to reinvest in shares, shares, reimbursable obligations, convertible bonds or participatory securities as well as in advances in current accounts in companies not admitted to negotiations on a market of financial instruments within the meaning of Article L. 214-28 I or in entities referred to in Article L. 214-28 II, whose titles or rights are in its assets;
“(b) Or to meet the reinvestment requirementArticle 163 quinquies B of the General Tax Code.
« 2° From the beginning of the fiscal year following the closing of the fifth fiscal year following the year in which the last subscriptions occurred, in the other cases.
"From the year in which the declaration referred to in the first paragraph is filed, the 50 per cent quota in the I of Article L. 214-28 may no longer be respected and the II and III of Article R. 214-36 do not apply.
"Art. R. 214-41. -During the preliquidation period, the fund:
« 1° No longer may new subscriptions of shares other than those of its shareholders on the date of its entry into pre-liquidation period to reinvest in shares, shares, repayable obligations, convertible bonds or participatory securities as well as in advances in current accounts in companies not admitted to the negotiations on a market of financial instruments within the meaning of Article I 214-28, or in entities referred to in Article II
« 2° Can, by derogation from section R. 214-43, assign to a related company capital or debt securities held for more than twelve months. In this case, assignments are assessed by an independent expert on the report of the External Auditor; these assignments and the related report are communicated to the Autorité des marchés financiers;
« 3° Do not hold on to its assets from the opening of the fiscal year following the opening of the preliquidation period that:
“(a) Securities or rights of companies not admitted to negotiations on a financial market of financial instruments within the meaning of Article I of Article L. 214-28 or securities or corporate rights admitted to negotiations on a market of financial instruments when such securities or rights were taken into account in the assessment of the quotas referred to in Article R. 214-35 if the account had not entered into a pre-liquidation period,
“(b) Investments made for the investment of the proceeds of disposal of its assets and other products pending distribution by the end of the year following the year in which the assignment was made or the proceeds realized, and the placement of its cash in the amount of 20% of the liquidative value of the fund.
"Art. A. 214-42.-When the fund management company proceeds to purchase or sale transactions involving securities that are not allowed to negotiate on a market of financial instruments within the meaning of Article I of L. 214-28, the agreements concerning these transactions are entered into within and under the conditions specified in the settlement of the fund.
"Art. R. 214-43. -The management company may not, on behalf of a fund, carry out, for its assets that are not negotiated on a market of financial instruments within the meaning of Article I L. 214-28, other transactions than those of purchase or sale in term or in cash within the limits set by this subsection or to proceed for those same assets of assets related to transfers or acquisitions Is presumed "related business" any enterprise controlled by the management company in an exclusive or joint manner within the meaning of theArticle L. 233-16 of the Commercial Codeany enterprise controlling the management company in an exclusive or joint manner within the meaning of the same article L. 233-16, any subsidiary enterprise of the same parent company and any enterprise with which the management company has social agents or common executives and who performs participation management functions on behalf of the undertaking, or management functions within the meaning of section 4 L. 321-1 and section L. 214-8-1, or advice within the meaning of section 4 L. 321-2.
"Art. R. 214-44.-I. ― When the settlement of the fund provides for a progressive appeal of capital, the funds shall be released by the shareholders at the request of the management company before the end of the blocking period provided for in Article L. 214-28, VII.
"The settlement of the fund defines the terms and conditions under which the amounts not paid on the due date fixed by the management corporation are of interest.
“II. ― When the conditions for the redemption of the shares of the fund are met, the redemption is made in cash.
"However, at the dissolution of the fund, the redemption of the shares may be effected in corporate securities in which the fund holds an interest if the settlement of the fund provides, that no particular provision or clause limits the free recurrence of these securities and that the shareholder expressly makes the request.
"The redemptions are carried out and settled by the depositary institution under the conditions set out in the settlement of the fund, which also prescribes the deadlines that cannot exceed a total of one year after the deposit of the redemption request.
"When a fund management company or its shareholders or executives or natural or legal persons responsible for the management of that fund hold shares conferring on them special rights under the provisions of Article L. 214-28, they may only obtain the redemption of the fund or after the other shares issued have been redeemed or amortized to the amount to which the other shares have been released.
"The fraction attributed to the management company provided for in the XI of Article L. 214-28 shall not exceed 20% of the liquidation bonus.
"III. ― At the end of the subscription period(s) referred to in the IX of section L. 214-28, the management corporation may distribute in cash a fraction of the assets of the fund.
"However, such distribution may be made in financial instruments allowed to negotiate on a regulated market within the meaning of section R. 214-11 if the settlement of the fund provides, that no particular provision or clause limits the free-standingness of these securities and that it is granted to all holders of shares an option between the payment of the distribution in cash or shares.
"The sums or values thus distributed are primarily allocated to the damping of the shares.
"A special report shall be prepared by the auditors when distribution is made for the benefit of holders of shares to which special rights are attached.
"Art. R. 214-45. -The management company shall report to the shareholders of the appointments of its social and employee agents to the functions of managers, administrators, directors, directors or supervisory boards of the companies in which the fund holds participations.
"Art. R. 214-46. I. ― The entities referred to in 2° of II of Article L. 214-28 in which joint venture funds can invest are those that limit the liability of their investors to the amount of their contributions.
“II. ― For the assessment of the 50 per cent quota numerator provided for in Article L. 214-28, the representative rights of a financial investment in entities referred to in I shall be taken into account in the proportion of the direct investment of these entities in securities eligible for that same quota of 50 per cent excluding rights in other entities of the same nature.
"This proportion of direct investment is calculated by reference:
« 1° be the last inventory of the assets of these entities;
« 2° Either the statutory or contractual obligations of direct investment in eligible securities made by the said entities to the extent that they have not entered the pre-liquidation period referred to in Articles R. 214-40 and R. 214-41 during the subscription of the fund.
"The proportion applies to contractual subscription commitments given by the fund to those entities provided that these commitments are irrevocable.
“Subparagraph 2
"Common Investment Funds in Innovation
"Art. R. 214-47.-For the assessment of the 60% quota in Article L. 214-30 I:
« 1° The numerator consists of the subscription or acquisition price of the securities or rights of the portfolio and the book value of the other assets.
"The denominator is constituted by the amount released from subscriptions in the fund. This amount is reduced from the share buybacks requested by the carriers and made under such conditions as the settlement of the fund does not allow to oppose the provisions of Article L. 214-28 of the VII and increased the reinvested sums by the shareholders in accordance with the reinvestment obligation provided for in Article L. 214-28Article 163 quinquies B of the General Tax Code ;
« 2° When a corporation whose securities or rights are included in the 60 per cent quota is subject to judicial liquidation, the securities or rights cancelled are deemed to be retained on the assets for their subscription or acquisition price for five years from the liquidation closing judgment; where a company whose titles or rights are included in the 60% quota is experiencing difficulties in jeopardizing the continuity of operation within the meaning ofArticle L. 234-1 of the Commercial Code and is subject to amicable liquidation under the conditions defined in Articles L. 237-1 to L. 237-13 of the Commercial Code or a capital reduction followed by an increase in capital under the conditions defined in theArticle L. 224-2 of the Commercial Code, the securities or fees cancelled shall be deemed to be held at the asset for their subscription and acquisition price for five years from the decision of the competent bodies of the corporation;
« 3° When securities or rights included in the 60% quota are disposed of, the assigned securities or rights are deemed to be retained on the assets for their subscription or acquisition price for a period of two years from the date of the assignment. Beyond this period, where the fund proceeds to a distribution or redemption of shares in the amount of the proceeds of the assignment, the amount of the distribution or redemption that has not been deducted under the provisions of 1° is deducted from the denominator within the limit of the subscription price or acquisition of the assigned securities or rights; as from the date on which the fund may enter into a pre-liquidation period as referred to in sections R. 214-53 and R. 214-54, the denominator may, if any, be reduced from the amount of the distribution of the sale price of the securities or rights not included in the quota of 60% within the limit of the subscription price or acquisition of the same securities or rights, subject to the new investment quota of 60%
« 4° Where securities or rights received in exchange for securities or rights included in the 60 per cent quota are not themselves eligible for these quotas, the securities or rights returned to the exchange are deemed to be retained on the assets for their subscription or acquisition price for two years from the date of the exchange or until the end of the period during which the asset corporation has committed to retain the securities or rights in that fund if
« 5° New subscriptions in a common investment fund in innovation are taken into account from the closing inventory of the year following the year in which they were released;
« 6° In the event of non-compliance with the quota of 60% in a semi-annual inventory, the fund is not dropped from its plan if it regulates its situation at the latest in the following inventory subject to, on the one hand, that the management company informs the tax service to which it files its return of results within the month following the inventory having revealed that the quota has not been met and, on the other hand, is missing.
"Art. R. 214-48.-I. ― The provisions of sections R. 214-11 to R. 214-14, R. 214-21, R. 214-23 to R. 214-27, R. 214-29, R. 214-33, R. 214-33-1 and R. 214-34 are not applicable to mutual investment funds in innovation.
“II. ― The assets of a joint investment fund in innovation can be used to:
"1° 10% at most in securities of the same transmitter;
"2° 35% in shares or shares of the same securities collective investment organization;
"A maximum of 3° 10% in shares or shares of registered securities collective investment organizations reserved for certain investors under Article L. 214-33;
"4° 10% not more in title or rights of the same entity referred to in 2° of II of Article L. 214-28 not falling within the other provisions of Article L. 214-28 or Article L. 214-30 or Article L. 214-31.
"III. ― Common investment funds in innovation are not considered for the application of Article I R. 214-26.
"IV. ― A joint investment fund in innovation must comply with the provisions of this section upon the expiration of two years from the date of its approval by the Autorité des marchés financiers.
"Art. R. 214-48-1.-A joint investment fund in innovation can borrow within 10% of its assets.
"Art. R. 214-49.-A joint investment fund in innovation may not employ more than 10% of its assets in representative rights of a financial investment in entities referred to in 2° of II of Article L. 214-28 not falling within the other provisions of this Article L. 214-28 or Articles L. 214-1, L. 214-30 and L. 214-38.
"Art. R. 214-50.-For the assessment of the limits set out in articles R. 214-48 and R. 214-49:
« 1° Where the securities held by the fund are not admitted to negotiations on a market of financial instruments within the meaning of Article L. 214-28, they are retained for their acquisition or subscription value;
« 2° Where securities held by the fund are exchanged with securities not admitted to the negotiations on a market of financial instruments within the meaning of Article I L. 214-28, the securities received for the exchange by the fund are taken into account in the asset for the subscription or acquisition of the securities traded;
« 3° Where securities held by the fund are admitted to the negotiations on a market of financial instruments within the meaning of Article L. 214-28, or when they are exchanged with securities admitted to the negotiations on a market of financial instruments within the meaning of Article L. 214-28, the securities held or handed over to the exchange by the fund shall be deemed to be held on the assets for the acquisition of subscription or At the end of this period, the ratio of Article R. 214-48 to 1° of II is increased to 20% and is appreciative of the securities held or received in exchange as any other title allowed to negotiations on a market of financial instruments within the meaning of Article L. 214-28;
« 4° Where the securities or rights held by the fund are issued by an entity referred to in 2° of II of Article L. 214-28, the contractual undertaking of subscription or acquisition taken by the fund shall be entered for its amount to the numerator;
« 5° The maximum denominator of the following two amounts is the net assets of the fund or the total amount of contractual obligations for subscription or acquisition received by the fund.
"Art. R. 214-51.-For the assessment of the 15% limit referred to in 1° of II of Article L. 214-28 is entered into the highest denominator of the following two amounts: the net assets of the fund or the amount released from subscriptions in the fund.
"Art. R. 214-52.-A joint investment fund in innovation:
« 1° No more than 35% of the capital or voting rights of the same issuer. However, because of the exercise of trade, subscription or conversion rights and in the interest of shareholders, this limit may be temporarily exceeded. In this case, the management company shall communicate to the Autorité des marchés financiers, to the depositary and to the auditor of the fund the reasons for this exceedance and the forecast schedule of regularization. Regularization must occur no later than the year following the overtaking;
« 2° Do not hold, or undertake to subscribe or acquire, more than 20% of the total amount of the securities or rights and contractual obligations of the same entity referred to in 2° of II of Article L. 214-28 not falling within the other provisions of Article L. 214-28 or Article L. 214-30 or Article L. 214-31;
« 3° No more than 10% of the shares or shares of a securities collective investment organization that do not fall within 2° of II of Article L. 214-28.
"Art. R. 214-53.-After a statement to the Autorité des marchés financiers and to the service of taxes to which its management company deposits its return of results, a joint investment fund in innovation may enter into a preliquidation period:
« 1° From the beginning of the year following the closing of its fifth fiscal year if, since the expiry of a period of subscription of no more than eighteen months immediately following the date of its constitution, no subscriptions have been made from shares other than those made with its shareholders who have subscribed during the period of eighteen months referred to above:
“(a) To enable it to reinvest in shares, shares, reimbursable obligations, convertible bonds or participatory securities as well as in advances in current accounts in companies not admitted to negotiations on a market of financial instruments within the meaning of Article L. 214-28 I or in entities referred to in Article L. 214-28 II, whose titles or rights are in its assets;
“(b) Or to meet the reinvestment requirementArticle 163 quinquies B of the General Tax Code ;
« 2° From the beginning of the fiscal year following the closing of the fifth fiscal year following the year in which the last subscriptions occurred, in the other cases.
"From the year in which the declaration referred to in the first paragraph is filed, the 60% quota in the I of Article L. 214-30 may not be met.
"Art. R. 214-54. -During the preliquidation period, the fund:
« 1° No longer may new subscriptions of shares other than those of its shareholders on the date of its entry into pre-liquidation period to reinvest in shares, shares, repayable obligations, convertible bonds or participatory securities as well as in advances in current accounts in companies not admitted to the negotiations on a market of financial instruments within the meaning of Article I 214-28, or in entities referred to in Article II
« 2° Can, by derogation from section R. 214-56, assign to a related company capital or debt securities held for more than twelve months. In this case, assignments are assessed by an independent expert on the report of the External Auditor; these assignments and the related report are communicated to the Autorité des marchés financiers;
« 3° Do not hold on to its assets from the opening of the fiscal year following the opening of the preliquidation period that:
(a) Securities or rights of companies not admitted to negotiations on a financial market within the meaning of Article L. 214-28 or securities or rights of companies admitted to negotiations on a financial market within the meaning of Article L. 214-28 where such securities or rights have been taken into account in the assessment of the quotas referred to in Article R. 214-47 if the fund had not entered into an assets period
(b) Investments made for the investment of the proceeds of disposal of its assets and other products pending distribution by the end of the year following the year in which the assignment was made or the proceeds realized and the placement of its cash at 20% of the liquidative value of the fund.
"Art. A. 214-55.-When the fund management company conducts purchase or sale transactions relating to securities that are not allowed to negotiate on a financial instrument market within the meaning of Article L. 214-28, the agreements relating to such transactions shall be entered into within and under the conditions specified in the settlement of the fund.
"Art. R. 214-56. -The management company may not, on behalf of a fund, carry out, for its assets that are not negotiated on a market of financial instruments within the meaning of section R. 214-11, other transactions than those of purchase or sale in term or in cash within the limits set by this subsection or to proceed for the same assets to be disposed of or acquired in respect of a corporation that has been held in the interest of a corporation Is presumed "related business" any enterprise controlled by the management company in an exclusive or joint manner within the meaning of theArticle L. 233-16 of the Commercial Codeany enterprise controlling the management company in an exclusive or joint manner within the meaning of the same article L. 233-16, any subsidiary enterprise of the same parent company and any enterprise with which the management company has social agents or common executives and who performs participation management functions on behalf of the undertaking, or management functions within the meaning of section 4 L. 321-1 and section L. 214-8-1, or advice within the meaning of section 4 L. 321-2.
"Art. R. 214-57.-I. ― When the settlement of the fund provides for a gradual appeal of capital, the funds shall be released by the shareholders at the request of the management company before the end of the blocking period provided for in Article L. 214-28, VII.
"The settlement of the fund defines the terms and conditions under which the amounts not paid on the due date fixed by the management corporation are of interest.
“II. ― When the conditions for the redemption of the shares of the fund are met, the redemption is made in cash.
"However, at the dissolution of the fund, the redemption of the shares may be effected in corporate securities in which the fund holds an interest if the settlement of the fund provides, that no particular provision or clause limits the free recurrence of these securities and that the shareholder expressly makes the request.
"The redemptions are carried out and settled by the depositary institution under the conditions set out in the settlement of the fund, which also prescribes the deadlines that cannot exceed a total of one year after the deposit of the redemption request.
"When a fund management company or its shareholders or executives or natural or legal persons responsible for the management of that fund hold shares conferring on them special rights under the provisions of Article L. 214-28, they may only obtain the redemption of the fund or after the other shares issued have been redeemed or amortized to the amount to which the other shares have been released. The portion assigned to the management company referred to in the XI of Article L. 214-28 shall not exceed 20% of the liquidation bonus.
"III. ― At the end of the subscription period(s) referred to in the IX of section L. 214-28, the management corporation may distribute in cash a fraction of the assets of the fund.
"However, such distribution may be made in financial instruments allowed to negotiate on a regulated market within the meaning of section R. 214-11 if the settlement of the fund provides, that no particular provision or clause limits the free-standingness of these securities and that it is granted to all holders of shares an option between the payment of the distribution in cash or shares.
"The sums or values thus distributed are primarily allocated to the damping of the shares.
"A special report shall be prepared by the auditors when distribution is made for the benefit of holders of shares to which special rights are attached.
"Art. R. 214-58. -The management company shall report to the shareholders of the appointments of its social and employee agents to the functions of managers, administrators, directors, directors or supervisory boards of the companies in which the fund holds participations.
"Art. R. 214-62.-For the companies mentioned in the first paragraph of the 1st paragraph of Article L. 214-30, the number of employees is determined by the sum of the number of employees of the company and the number of employees of each of the companies mentioned in c. 1st of the same IV.
"Art. R. 214-63.-For the companies referred to in the first paragraph of the 1st paragraph of Article L. 214-30, the condition relating to the exclusivity of the holdings is met when the participating securities, the capital securities or giving access to the capital issued by companies other than the subsidiary companies mentioned in c of 1st of the same IV as well as the advances in the current account of their accountants represent not more than 10 per cent of their shareholders.
"Art. R. 214-64.-The entities referred to in 2° of II of Article L. 214-28 in which mutual investment funds in innovation can invest are those that limit the responsibility of their investors to the amount of their contributions.
“Subparagraph 3
"Community Investment Funds
"Art. R. 214-65.-For the assessment of the 60% quota in Article L. 214-31:
« 1° The numerator consists of the subscription or acquisition price of the securities or rights of the portfolio and the book value of the other assets.
"The denominator is constituted by the amount released from subscriptions in the fund. This amount is reduced from the share buybacks requested by the carriers and made under such conditions as the settlement of the fund does not allow to oppose the provisions of Article L. 214-28 of the VII and increased the reinvested sums by the shareholders in accordance with the reinvestment obligation provided for in Article L. 214-28Article 163 quinquies B of the General Tax Code ;
« 2° When a corporation whose securities or rights are included in the 60 per cent quota is subject to judicial liquidation, the securities or rights cancelled are deemed to be retained on the assets for their subscription or acquisition price for five years from the liquidation closing judgment; where a company whose titles or rights are included in the 60% quota is experiencing difficulties in jeopardizing the continuity of operation within the meaning ofArticle L. 234-1 of the Commercial Code and is subject to amicable liquidation under the conditions defined in Articles L. 237-1 to L. 237-13 of the Commercial Code or a capital reduction followed by an increase in capital under the conditions defined in theArticle L. 224-2 of the Commercial Code, the securities or fees cancelled shall be deemed to be held at the asset for their subscription and acquisition price for five years from the decision of the competent bodies of the corporation;
« 3° When securities or rights included in the 60% quota are disposed of, the assigned securities or rights are deemed to be retained on the assets for their subscription or acquisition price for a period of two years from the date of the assignment. In addition to this period, where the fund proceeds to a distribution or redemption of shares up to the proceeds of the assignment, the amount of the distribution or redemption that has not been deducted under the provisions of 1° is deducted from the denominator within the limit of the subscription price or acquisition of the assigned securities or rights. As from the date on which the fund may enter into a pre-liquidation period as referred to in sections R. 214-71 and R. 214-72, the denominator may, if any, be reduced from the amount of the distribution of the sale of securities or rights not included in the quota of 60% within the limit of the subscription or acquisition of the same securities or rights, provided that the new investment quota of 60%
« 4° Where securities or rights received in exchange for securities or rights included in the 60 per cent quota are not themselves eligible for these quotas, the securities or rights returned to the exchange are deemed to be retained on the assets for their subscription or acquisition price for two years from the date of the exchange or until the end of the period during which the asset corporation has committed to retain the securities or rights in that fund if
« 5° New subscriptions in a proximity investment fund are taken into account from the closing inventory of the year following the year in which they were released;
« 6° In the event of non-compliance with the quota of 60% in a semi-annual inventory, the fund is not dropped from its plan if it regulates its situation at the latest in the following inventory subject to, on the one hand, that the management company informs the tax service to which it files its return of results within the month following the inventory having revealed that the quota has not been met and, on the other hand, is missing.
"Art. R. 214-66.-I. ― The provisions of sections R. 214-11 to R. 214-14, R. 214-21, R. 214-23 to R. 214-27, R. 214-29, R. 214-33, R. 214-33-1 and R. 214-34 are not applicable to community investment funds.
“II. ― The assets of a community investment fund can be used to:
"1° 10% at most in securities of the same transmitter;
"2° 35% in shares or shares of the same securities collective investment organization;
"A maximum of 3° 10% in shares or shares of registered securities collective investment organizations reserved for certain investors under Article L. 214-33;
"4° 10% not more in title or rights of the same entity referred to in 2° of II of Article L. 214-28 not falling within the other provisions of Article L. 214-28 or Article L. 214-30 or Article L. 214-31.
"III. ― Community investment funds are not considered for the application of Article R. 214-26.
"IV. ― A proximity investment fund must comply with the provisions of this section upon the expiry of a two-year period from its approval by the Autorité des marchés financiers.
"Art. R. 214-66-1.-A community investment fund can borrow within 10% of its assets.
"Art. R. 214-67.-A community investment fund may not use more than 10% of its assets in representative rights of a financial investment in entities referred to in 2° of II of Article L. 214-28 not falling within the other provisions of Article L. 214-28 or Articles L. 214-1, L. 214-30 and L. 214-38.
"Art. R. 214-68.-For the assessment of the limits set out in articles R. 214-66 and R. 214-67:
« 1° Where the securities held by the fund are not admitted to negotiations on a market of financial instruments within the meaning of Article L. 214-28, they are retained for their acquisition or subscription value;
« 2° Where securities held by the fund are exchanged with securities not admitted to the negotiations on a market of financial instruments within the meaning of Article I L. 214-28, the securities received for the exchange by the fund are taken into account in the asset for the subscription or acquisition of the securities traded;
« 3° Where securities held by the fund are admitted to the negotiations on a market of financial instruments within the meaning of Article L. 214-28, or when they are exchanged with securities admitted to the negotiations on a market of financial instruments within the meaning of Article L. 214-28, the securities held or handed over to the exchange by the fund shall be deemed to be held on the assets for the acquisition of subscription or At the end of this period, the ratio of Article R. 214-66 to 1° of II is increased to 20% and is appreciative of the securities held or received in exchange as any other title allowed to negotiations on a market of financial instruments within the meaning of Article L. 214-28;
« 4° Where the securities or rights held by the fund are issued by an entity referred to in 2° of II of Article L. 214-28, the contractual undertaking of subscription or acquisition taken by the fund shall be entered for its amount to the numerator;
« 5° The maximum denominator of the following two amounts is the net assets of the fund or the total amount of contractual obligations for subscription or acquisition received by the fund.
"Art. R. 214-69.-For the assessment of the 15% limit referred to in 1° of II of Article L. 214-28, the maximum denominator of the two amounts is the net assets of the fund or the amount released from the subscriptions in the fund.
"Art. R. 214-70.-A community investment fund:
« 1° No more than 35% of the capital or voting rights of the same issuer. However, because of the exercise of trade, subscription or conversion rights and in the interest of shareholders, this limit may be temporarily exceeded. In this case, the management company shall communicate to the Autorité des marchés financiers, to the depositary and to the auditor of the fund the reasons for this exceedance and the forecast schedule of regularization. Regularization must occur no later than the year following the overtaking;
« 2° Do not hold, or undertake to subscribe or acquire more than 20% of the total amount of the securities or rights and contractual obligations of the same entity referred to in 2° of II of Article L. 214-28 not falling within the other provisions of Article L. 214-28, nor of Article L. 214-30, nor of Article L. 214-31;
« 3° No more than 10% of the shares or shares of a securities collective investment organization that do not fall within 2° of II of Article L. 214-28.
"Art. R. 214-71.-After a statement to the Autorité des marchés financiers and to the service of taxes to which its management company deposits its performance statement, a local investment fund may enter into a preliquidation period:
« 1° From the beginning of the year following the closing of its fifth fiscal year if, since the expiry of a period of subscription of no more than eighteen months immediately following the date of its constitution, no subscriptions have been made from shares other than those made with its shareholders who have subscribed during the period of eighteen months referred to above:
“(a) To enable it to reinvest in shares, shares, repayable obligations, convertible bonds or participatory securities as well as in advances in current accounts in companies not admitted to negotiations on a market of financial instruments within the meaning of Article I 214-28 or in entities referred to in Article 2° of Article L. 214-28 or in joint venture funds referred to in Article L. 214-28 Act No. 85-695 of 11 July 1985 bringing various economic and financial provisions whose titles or rights are in its assets;
“(b) Or to meet the reinvestment requirementArticle 163 quinquies B of the General Tax Code.
« 2° From the beginning of the fiscal year following the closing of the fifth fiscal year following the year in which the last subscriptions occurred, in the other cases.
"From the year in which the declaration referred to in the first paragraph is filed, the 60% quota in the I of Article L. 214-31 may not be met.
"Art. R. 214-72.-During the preliquidation period, the fund:
« 1° Can no longer make any new subscriptions of shares other than those of its shareholders on the date of its entry into pre-liquidation period to reinvest in shares, shares, repayable obligations, convertible bonds or participating securities as well as in advances in current accounts in companies not admitted to negotiations on a market of financial instruments within the meaning of Article Iris 214-28 or in entities mentioned Act No. 85-695 of 11 July 1985 bringing various economic and financial provisions whose titles or rights are in its assets;
« 2° Can, by derogation from section R. 214-74, assign to a related company capital or debt securities held for more than twelve months. In this case, assignments are assessed by an independent expert on the report of the External Auditor; these assignments and the related report are communicated to the Autorité des marchés financiers;
« 3° Do not hold on to its assets from the opening of the fiscal year following the opening of the preliquidation period that:
“(a) securities or rights of companies not admitted to negotiations on a market of financial instruments within the meaning of Article I 214-28 or of securities or corporate rights admitted to negotiations on a market of financial instruments within the meaning of Article I 214-28 when such securities or rights were taken into account in the valuation of the quotas referred to in Article R. 214-65 Act No. 85-695 of 11 July 1985 bringing various economic and financial provisions whose titles or rights are in its assets;
“(b) Investments made for the investment of the proceeds of disposal of its assets and other products pending distribution by the end of the year following the year in which the assignment was made or the proceeds realized, and the placement of its cash in the amount of 20% of the liquidative value of the fund.
"Art. R. 214-73.-When the fund management company proceeds to purchase or sale-to-term transactions involving securities that are not allowed to negotiate on a market of financial instruments within the meaning of section I of L. 214-28, the agreements concerning these transactions are entered into within and under the conditions specified in the settlement of the fund.
"Art. R. 214-74. -The management company may not, on behalf of a fund, carry out, for its assets that are not negotiated on a regulated market within the meaning of section R. 214-11, other transactions than those of purchase or sale in term or in cash within the limits set by this subsection, or carry out for these same assets twelve months of disposal or acquisitions related to a business that is held in the corporation or Is presumed "related business" any enterprise controlled by the management company in an exclusive or joint manner within the meaning of theArticle L. 233-16 of the Commercial Codeany enterprise controlling the management company in an exclusive or joint manner within the meaning of the same article L. 233-16, any subsidiary enterprise of the same parent company and any enterprise with which the management company has social agents or common executives and who performs participation management functions on behalf of the undertaking, or management functions within the meaning of section 4 L. 321-1 and section L. 214-8-1, or advice within the meaning of section 4 L. 321-2.
"Art. R. 214-75.-I. ― When the settlement of the fund provides for a progressive appeal of the capital, it shall be released by the shareholders at the request of the management company before the end of the blocking period provided for in Article L. 214-28, VII.
"The settlement of the fund defines the terms and conditions under which the amounts not paid on the due date fixed by the management corporation are of interest.
“II. ― When the conditions for the redemption of the shares of the fund are met, the redemption is made in cash.
"However, at the dissolution of the fund, the redemption of the shares may be effected in corporate securities in which the fund holds an interest if the settlement of the fund provides, that no particular provision or clause limits the free recurrence of these securities and that the shareholder expressly makes the request.
"The redemptions are carried out and settled by the depositary institution under the conditions set out in the settlement of the fund, which also prescribes the deadlines that cannot exceed a total of one year after the deposit of the redemption request.
"When a fund management company or its shareholders or executives or natural or legal persons responsible for the management of that fund hold shares conferring on them special rights under the provisions of Article L. 214-28, they may only obtain the redemption of the fund or after the other shares issued have been redeemed or amortized to the amount to which the other shares have been released. The portion assigned to the management company referred to in the XI of Article L. 214-28 shall not exceed 20% of the liquidation bonus.
"III. ― At the end of the subscription period(s) referred to in the IX of Article L. 214-28, the management corporation may distribute, in cash, a fraction of the assets of the fund.
"However, such distribution may be made in financial instruments allowed to negotiate on a regulated market within the meaning of section R. 214-11 if the settlement of the fund provides, that no particular provision or clause limits the free-standingness of these securities and that it is granted to all holders of shares an option between the payment of the distribution in cash or shares.
"The sums or values thus distributed are primarily allocated to the damping of the shares.
"A special report shall be prepared by the auditors when distribution is made for the benefit of holders of shares to which special rights are attached.
"Art. R. 214-76. -The management company shall report to the shareholders of the appointments of its social and employee agents to the functions of managers, administrators, directors, directors or supervisory boards of the companies in which the fund holds participations.
"Art. R. 214-77.-For the application of the 1° of the I of Article L. 214-31, a company is considered to be carrying out its activities primarily in the establishments located in the geographic area chosen by a nearby investment fund when at the close of their exercise prior to the first investment of the fund in that undertaking:
« 1° Either these establishments meet two of the following three conditions:
“(a) Their cumulative business figures represent at least 30% of the total turnover of the company;
“(b) Their accumulated permanent staff account for at least 30% of the total number of employees in the company;
"(c) Their used gross capital assets represent at least 30% of the total gross capital used in the business;
« 2° Either these establishments exercise, in relation to two of the three economic data mentioned in the 1°, an activity more important than that carried out by those of the other establishments of the company that are located in another geographical area chosen by a nearby investment fund. The respective situation of these institutions is appreciated either on January 1 of the investment year, or three months before the date of the investment.
"Art. R. 214-78.-For companies referred to in 3° of I of Article L. 214-31, the condition of exclusive detention is satisfied when the securities giving access to the capital of companies whose purpose is not the possession of financial participations and which meet the eligibility conditions set out in the first paragraph and at 1° and 2° of the same I represent 90% of their assets.
"Art. R. 214-79.-The entities referred to in 2° of II of Article L. 214-28 in which the investment funds can invest are those that limit the responsibility of their investors to the amount of their contributions.
“Paragraph 3
« Collective investment organizations
securities reserved for certain investors
“Subparagraph 1
“Common provisions
"Art. R. 214-82.-Agreed securities collective investment organizations reserved for certain investors are not considered for the purposes of section I R. 214-26.
“Subparagraph 2
« Collective investment organizations
securities with reduced investment rules
"Art. R. 214-83.-I. ― The limit provided for in section R. 214-33 is increased to 50% for collective investment organizations in securities with reduced investment rules.
However, a group investment agency in securities with a reduced investment rules cannot employ more than 10% of its assets in instruments referred to in Article L. 214-130, and 20% of its assets in instruments referred to in Article L. 214-120. The instruments mentioned in Article R. 214-33 cannot represent more than 20% of its assets.
“II. ― The provisions of Article R. 214-21, VIII, are not applicable to collective investment organizations in securities with reduced investment rules.
"III. ― Section R. 214-34 is not applicable to securities collective investment organizations with reduced investment rules.
"Art. R. 214-83-1.-By derogating from the limit of 50% referred to in Article R. 214-83, collective investment organizations in securities with a reduced investment rules may employ up to 100% of their assets in financial instruments referred to in Article R. 214-86(1), provided that the financial instruments referred to in 1° to 6° of Article I of the same Article 214-86
"Art. R. 214-84.-I. ― By derogation from section R. 214-21, a group investment organization in securities with a reduced investment rules may use:
« 1° Up to 50% of its assets in shares or shares referred to in 3° of Article L. 214-20 of the same collective investment organization or investment funds;
« 2° Up to 35% of its assets in instruments mentioned in 1° and 2° of I of Article L. 214-20 or in instruments referred to in Article R. 214-33 of the same transmitter. The limit of 40% defined in Article R. 214-21 is not applicable;
« 3° Up to 50% of its instrument assets mentioned in 1° and 2° of I of Article L. 214-20 of the same issuer provided that the securities held were issued under the conditions specified in 2° of IV of Article R. 214-21 in three different emissions;
« 4° Up to 35% of its assets in deposits placed at the same institution.
“II. ― Notwithstanding the provisions of this section and section R. 214-21, a collective investment organization in securities with a reduced investment rules may not employ more than 50% of its assets in financial instruments referred to in section L. 214-20 of the same institution, in deposits placed with or at risk of counterparty referred to in sections R. 214-18 and R. 214-2
"III. ― By derogation from I and II of section R. 214-26, a collective investment organization in securities with a reduced investment rules may hold up to 35% of financial instruments with a right to vote of the same issuer and financial instruments of each of the categories referred to in II of section R. 214-26. This 35% limit is extended to 100% for investment in collective investment organizations or foreign investment funds referred to in R. 214-34 or 5° or 6° of R. 214-33.
"IV. ― By derogation from the 5th of Article R. 214-33, the assets of a collective investment agency in securities with a reduced investment rules may also include, within the 10 per cent limit mentioned in the same article, shares or shares of foreign investment funds that do not meet the criteria set out in that 5th.
"V. ― Section R. 214-29 is not applicable to securities collective investment organizations with reduced investment rules.
"Art. R. 214-85.-I. ― The last paragraph of Article R. 214-21 is not applicable to securities collective investment organizations with reduced investment rules.
“II. ― By derogation from section R. 214-30, the overall risk of a group investment organization in securities with a reduced investment rules that results from financial contracts, transfers or temporary acquisition of securities, borrowings of cash may reach three times its assets.
"III. ― The 100% limit referred to in 2° of II of section R. 214-19 is increased to 140% for securities collective investment organizations with reduced investment rules.
“Subparagraph 3
« Collective investment organizations
securities of alternative funds
"Art. R. 214-86.-I. ― A collective investment agency in securities of alternative funds is a collective investment agency in securities under section L. 214-33 that complies with the rules set out in II and may invest more than 10% of its assets:
« 1° In shares or shares of investment funds meeting the conditions set out in the 5th of Article R. 214-33, including those investing more than 10% of their assets in shares or shares of organizations falling under Article D. 214-22-1, in shares or shares of collective investment bodies in securities or foreign investment funds invested under conditions identical to those mentioned in the b of Part 4°-172,
« 2° Shares or shares of collective investment organizations in contractual securities under Article L. 214-36;
« 3° Shares or shares of registered securities collective investment organizations reserved for certain investors under Article L. 214-33;
« 4° In shares or shares of securities collective investment organizations benefiting from a relief proceeding under Article L. 214-54 in its drafting prior to 2 August 2003;
« 5° In shares of common funds for intervention in the futures markets referred to in Article L. 214-42 in its writing prior to the date of publication of theOrder No. 2011-915 of 1 August 2011 relating to securities collective investment organizations and the modernization of the legal framework for asset management;
« 6° In shares or shares of collective investment bodies in foster securities referred to in sections L. 214-22 and L. 214-26 or, under conditions defined in the general regulation of the Autorité des marchés financiers, in shares or shares of foreign-owned funds whose master fund meets the conditions set out in the 5th of section R. 214-33.
"A collective investment organization in securities of alternative funds may use up to 100% of its assets in the shares or shares mentioned in 1° to 6°.
“II. ― A group investment organization in securities of alternative funds may use up to 10% of its assets in shares or shares of the same investment fund or agency mentioned in 1° to 6° of I. It may also use up to 15% of its assets in shares or shares of the same investment fund or agency mentioned in 1° to 6° of I if the total value of these shares or shares exceeding 10% of the asset does not exceed 40% of that asset.
"III. ― By derogation from Article R. 214-11, the assets of a securities collective investment organization under this section may also include, within the limit of 10% referred to in the same section, shares or shares of foreign investment funds that do not meet the criteria set out in Article R. 214-33.
"IV. ― By derogation from the penultimate paragraph of section R. 214-33 and regardless of the application of the 1° of the I, a collective investment organization in securities of alternative funds may invest up to the totality of its assets in shares or shares of securities collective investment organizations or investment funds mentioned in Part II of Article L. 214-1 themselves invested more than 10% in shares
“(a) The fees and commissions related to direct or indirect investment in investment funds or securities collective investment organizations are subject to transparency rules defined by the general regulation of the Autorité des marchés financiers;
“(b) Receipts of fees and commissions referred to in (i) shall continue to be acquired by the group investment agency in securities of alternative funds under this IV.
"The application of I and II to a collective investment organization in securities of alternative funds under this IV shall be made at the level of organizations or funds in which the collective investment organization in securities of alternative funds is invested indirectly.
“Paragraph 4
« Collective investment organizations
securities reserved for certain investors
“Subparagraph 1
“Common provisions
"Art. R. 214-86-1.-Resident securities collective investment organizations reserved for certain investors are not considered for the purposes of Article I R. 214-26.
“Subparagraph 2
« Collective investment organizations
securities
"Art. R. 214-87.-The provisions of sections R. 214-9 to R. 214-31 are not applicable to securities collective investment organizations under section L. 214-36.
“Subparagraph 3
“Common Investment Funds
contractual risks
"Art. R. 214-87-1.-The provisions of sections R. 214-9 to R. 214-31 are not applicable to securities collective investment organizations under section L. 214-37.
“Subparagraph 4
“Common Risk Investment Funds
benefiting from a reduced procedure
"Art. R. 214-88.-For funds under Article L. 214-38:
« 1° The provisions of sections R. 214-11 to R. 214-14, to R. 214-19, R. 214-21, R. 214-23 to R. 214-27, R. 214-29, R. 214-33, R. 214-33-1, R. 214-34 and R. 214-36, R. 214-39 and R. 214-43 are not applicable.
However, funds must comply with the following rules:
“(a) The assets of the fund may be used only at a maximum of 50% in securities or rights of the same securities collective investment organization or of the same entity referred to in 2° of II of Article L. 214-28;
“(b) The fund may not hold more than 10% of the shares or shares of a securities collective investment organization that do not fall within 2° of II of Article L. 214-28.
« 2° By derogation from the second paragraph of the II and the second paragraph of the III of section R. 214-44, upon dissolution of the fund, the redemption of shares may be effected in the securities of the companies in which the fund holds an interest as soon as the settlement of the fund provides.
"The fourth paragraph of Article R. 214-44 is not applicable.
« 3° The management company may enter into agreements with third parties relating to the management of the fund's participation and with non-delivery contractual commitments, where the following conditions are met:
“(a) The amount of the corresponding commitments shall be determinable;
“(b) The management corporation may not enter into agreements by virtue of which the assets of the fund would be leased to more than 50% if the fund regulations so provide. In the latter case, the risks and expenses resulting from the normal performance of these commitments, as estimated in the financial assessment to which the management company is conducting, shall not exceed at any time the amount of the net assets of the fund. However, for funds that invest in entities referred to in 2° of II of Article L. 214-28, the risks and expenses resulting from their commitments in those entities must not exceed the amount of the subscription commitments received by the fund.
"The management company must make available to shareholders a list of these commitments indicating their nature and estimated amount.
« 4° The limits set at 1° shall be met upon the expiration of a period of two years from the creation of the fund.
"Art. R. 214-88-1.-A common risk investment fund that is benefiting from a reduced procedure can borrow within 10% of its assets.
“Paragraph 5
« Collective investment organizations
securities
“Subparagraph 1
“Common provisions
"Art. R. 214-89.-By derogation from the provisions of I and II of Article R. 214-21, joint investment funds and investment companies with variable shareholding capital may hold without limitation securities issued by the company or by a company connected to the meaning of Articles L. 3344-1 and L. 3344-2 of the Labour Code.
"In respect of the limited liability shares issued by a company governed by the Act No. 47-1775 of 10 September 1947 with the status of cooperation, the 10 per cent limit provided for in Article R. 214-21, Part II, is increased to 50 per cent provided that the statutes of that undertaking do not provide for any restriction on the immediate redemption of the shares held by the fund.
"Community investment funds and investment companies with variable shareholding capital are not considered for the purposes of Article I R. 214-26. However, they cannot hold more than 10% of financial instruments with a voting right of the same entity.
"By derogation from the II of Article R. 214-26 and the preceding paragraph, joint venture investment funds and investment companies with variable shareholding capital may hold more than 10% of the securities issued by the company or by any other company that is related to it within the meaning of Articles L. 3344-1 and L. 3344-2 of the Labour Code.
"The cumulative amount of liquidity recorded during the establishment of each of the liquidative values of the current year cannot exceed one-fifth of the net assets of the same period. The Autorité des marchés financiers may make exceptional derogations to this rule.
"When the proportion of the assets of a joint venture investment fund or of a variable share capital investment corporation governed by articles L. 214-40 and L. 214-41 invested in the securities of the enterprise or any other corporation that is related to it falls below the third party, the management company or the capital investment corporation shall, in their short-term purchase transactions and
"Art. R. 214-89-1.-The Autorité des marchés financiers may request that it be provided with the elements to ensure that members of the plan are offered at least one investment opportunity respecting the conditions set out in the planArticle L. 3332-17 of the Labour Code.
"Are considered liquid within the meaning ofArticle L. 3332-17 of the Labour Code :
« 1° Securities that are admitted to negotiations on a regulated French or foreign market;
« 2° Shares or shares of collective investment organizations in general-purpose securities under subsection 1 of this section and section L. 214-27.
"The mechanism to ensure the liquidity of securities not admitted to negotiations on a regulated market that is provided for inArticle L. 3332-17 of the Labour Code must offer a liquidity at least equivalent to that of which the fund would benefit if it held at least one third of liquid securities. It shall be subject to a written contract annexed to the settlement of the fund, which shall include the terms and conditions of its intervention and the costs that may, if any, be charged to the assets of the fund.
"It may be denounced at any time at the initiative of the management corporation or supervisory board provided that it is replaced by equivalent effect provisions.
"This mechanism is provided by a credit or insurance company whose head office is located in a Member State of the European Union or in another State Party to the European Economic Area Agreement.
"It may also be insured by another entity under conditions established by a regulation of the Autorité des marchés financiers (AMF) where the capital of the company is variable or when the company establishes consolidated accounts; in this case, the approval of the mechanism must be renewed annually by the fund supervisory board and the Financial Markets Authority.
"Art. R. 214-89-2.-Common corporate investment funds and investment companies with variable shareholding capital may include compartments. The provisions of articles L. 214-7,214-7-4, L. 214-8, L. 214-8-7, L. 214-20, R. 214-24, R. 214-26 and R. 214-29 as well as those of this subparagraph shall apply to each compartment.
"They may invest in shares or shares of other securities collective investment organizations without the limitations or restrictions set out in sections R. 214-21, R. 214-25 and R. 214-34 applicable to them. However, when their assets are fully invested in shares or shares of a single securities collective investment agency, they are in the form of a master organism under the conditions set out in section L. 214-26.
"Community investment funds and investment companies with variable shareholding capital cannot invest in shares or shares of investment funds mentioned in the 5th of Article R. 214-33.
“Subparagraph 2
"Common Business Investment Funds
"Art. R. 214-90.-Where the composition of the boards for the monitoring of joint investment funds governed by Article L. 214-40 and the terms and conditions for the designation of their members are set out in the second paragraph of Article L. 214-39, the third, fourth and fifth paragraphs of this Article shall be applied.
"Art. R. 214-90-1.-The assets of the joint investment funds governed by sections L. 214-39 and L. 214-40 may include shares of anonymous limited liability companies issued by companies governed by the Act No. 47-1775 of 10 September 1947 having the status of cooperation when these funds are subscribed by the employees of the said companies or by the employees of the companies that are linked to it within the meaning of the second paragraph of thearticle L. 3344-1 and ofarticle L. 3344-2 Work code.
"The settlement of joint investment funds may provide that they may invest within the 10% limit in the assets referred to in II of section R. 214-11 and section R. 214-33 of this code, with the exception of those funds that are constituted to manage securities issued by the company or any other corporation that is related to it within the meaning of second paragraph of articles L. 3344-1 and L. 3344-2 of the Labour Code and are not admitted to negotiations on a regulated market as defined in Article L. 421-1 of this Code. This limit is increased to 30% for shares or shares of securities collective investment organizations governed by sections L. 214-28 and L. 214-30, in accordance with theArticle L. 3332-17 of the Labour Code.
“Subparagraph 3
"Invest companies
variable capital of employee share ownership
"Art. R. 214-91.-The variable capital investment company defined in Article L. 214-41 is referred to as a variable capital investment company for employee shareholding. The management of its assets is governed by the provisions applicable to the funds referred to in Article L. 214-40. »
At 3° of Article R. 214-165 of the same code, the reference: "R. 214-63" is replaced by the reference: "R. 214-163".
In article R. 214-171 of the same code, the words "ii à iv du c du 3° du II de l'article R. 214-2" are replaced by the words "b à d du 3° du I de l'article R. 214-12".
Section R. 214-172 of the same code is amended as follows:
1° At 2°, the words: "negotiable debt securities satisfying the conditions of I or II of Article R. 214-2 and" are replaced by the words: "monetary market instruments mentioned in 2° of Article L. 214-20" and the words: "financial instruments" are replaced by the words: "financial contracts";
2° At 3°, the reference: "L. 421-3" is replaced by the reference: "L. 421-1" and the words: "the European Community" are replaced by the words: "the European Union";
3° At the 4th, the words: "subsections 1 to 8" are replaced by the words: "subsection 1 and section L. 214-27 of subsection 2" and the words: "with a procedure for mutual recognition of approvals within the meaning of directive 85/611/ EEC of the Council of 20 December 1985, coordinating legislative, regulatory and administrative provisions concerning certain securities collective investment bodies, are replaced by the words: "accredited in accordance with Directive 2009/65/EC of the European Parliament and the Council of 13 July 2009";
4° In the b of the 4°, the words "reported to articles R. 214-3 and R. 214-4" are replaced by the words "referred to in 4° and 6° of the I of Article L. 214-20".
In article R. 214-177 of the same code, the words: "subsections 1 to 8" are replaced by the words: "subsection 1 and section L. 214-27 of subsection 2" and the words: "without a procedure for mutual recognition of approvals within the meaning of directive 85/611/ EEC of the Council of 20 December 1985, coordinating legislative, regulatory and administrative provisions concerning certain securities collective investment bodies, are replaced by the words: "accredited in accordance with Directive No. 2009/65/EC of the European Parliament and the Council of 13 July 2009".
At the b of the 2nd of Article R. 214-183 of the same code, the words: "in the j of Article L. 214-92 granted by the body" are replaced by the words: "at the 3rd of the b, at the 2nd of the c and at the j of Article L. 214-92".
In R. 214-193 of the same code, the words "R. 214-1-1", "in II of Article R. 214-2" and "in the sense of I of Article R. 214-2" are replaced respectively by the words "L. 214-20", "in Article R. 214-12" and "in the sense of Article R. 214-11".
In article R. 214-194 of the same code, the words: "in whole or in part, in accordance with article R. 214-15, a term financial instrument" shall be replaced by the words: "in accordance with article R. 214-15-2, a financial contract".
In section R. 214-212-1 of the same code, the words: "Sections R. 214-20-1 and R. 214-20-2 apply" are replaced by the words: "Section R. 214-4 applies".
In II of article R. 214-223 of the same code, the words: "at 2° I of article R. 214-13" are replaced by the words: "at article R. 214-15".
In R. 313-25 of the same code, the words: "in R. 214-7" are replaced by the words: "at 2° of IV of R. 214-21".
In the second paragraph of article R. 532-10 of the same code, the words "and published in the Official Journal" are deleted.
Article R. 532-17 of the same code is supplemented by a paragraph as follows:
"The Autorité des marchés financiers is also the recipient of the notifications of the free establishment and free delivery of services of the management companies referred to in Article L. 532-20-1".
Article R. 532-19 of the same code is amended as follows:
1° In I, the words "European Community" are replaced by the words "European Union";
2° Au II :
(a) In the first and second paragraphs, after the words: "investment services provider" are added the words: "or a management company";
(b) In the second paragraph, the words "of the provider concerned" are replaced by the words "of the provider or the management company" and the words "that the provider ends the irregularities involved and" are replaced by the words "that it be terminated the irregularities observed and for";
(c) In the third paragraph, the words: "the provider" and "the provider concerned" are replaced by the words: "the provider or the management company" and after the words: "who impose themselves on him" are added the words: "or to him";
(d) In the fourth paragraph, the words: "the provider concerned" are replaced by the words: "the provider or the management company involved" and the words: "to which investment services are provided in France" are replaced by the words: "to which services are provided in France by that provider or management company".
Article R. 532-24 of the monetary and financial code is amended as follows:
1° In the first paragraph of the I, the words: "the European Community" are replaced by the words: "the European Union", the words: "communities governed by Articles 73 of the Constitution" are replaced by the words: "outre-mere departments, Saint-Barthélemy and Saint-Martin departments" and after the words: "investment services" are added the words: "or manage a collective investment agency in values 2009/65/EC
2° After the second paragraph of I, a sub-item reads as follows:
"For the management activity of registered securities collective investment organizations in accordance with Directive 2009/65/EC of the European Parliament and the Council of 13 July 2009, the program referred to in 2° of Article R. 532-20 also includes a description of the risk management process established by the portfolio management company and a description of the procedures and procedures for processing claims. » ;
3° The first paragraph of the second paragraph is supplemented by a sentence to read: "This period is two months when the activity envisaged is the management of registered securities collective investment bodies in accordance with Directive 2009/65/EC of the European Parliament and the Council of 13 July 2009. » ;
4° The III is supplemented by a sentence that reads as follows: "This period is two months when the activity envisaged is the management of registered securities collective investment bodies in accordance with Directive 2009/65/EC of the European Parliament and the Council of 13 July 2009";
5° After the III, an IV is inserted as follows:
"IV. ― Where a portfolio management company wishes to carry out the management activity of a securities collective investment organization approved in accordance with Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009, the Autorité des marchés financiers attached to the documentation sent to the competent authorities of the host Member State of the portfolio management company a certificate confirming that the said corporation was approved in accordance with the provisions of this directive, a description of the scope of application granted »
Article R. 532-25 of the same code is amended as follows:
1° In the first paragraph, after the words: "From Article R. 532-20" are added the words: "and in the third paragraph of Article R. 532-24";
2° After the first paragraph, two subparagraphs are inserted:
"In the event of an amendment to the information provided under the first paragraph of Article R. 532-24, the Autorité des marchés financiers shall notify the competent authorities of the host State of the portfolio management company accordingly.
"The Autorité des marchés financiers (AMF) shall update the information contained in the attestation referred to in IV of Article R. 532-24 and shall inform the competent authorities of the host Member State of the portfolio management company of any change in the scope of the approval granted to the said corporation or in the details of any possible restriction on the types of securities collective investment organization that the corporation is authorized to manage. »
Article R. 532-26 of the same code is amended as follows:
1° In the first paragraph of I, the words: "communities governed by articles 73 of the Constitution" are replaced by the words: "from overseas departments, Saint-Barthélemy and Saint-Martin" and the words: "the European Community" are replaced by the words: "the European Union";
2° In the second paragraph of II, the words "European Community" are replaced by the words "European Union".
Article R. 532-28 of the same code is amended as follows:
1° In the first paragraph of the I, the words: "communities governed by articles 73 of the Constitution" are replaced by the words: "from overseas departments, Saint-Barthélemy and Saint-Martin", the words: "the European Community" are replaced by the words: "the European Union" and after the words: "to provide investment services" are added the words: "or to manage a foreign investment agency 2009/65/EC
2° After the first paragraph of I, a sub-item is inserted:
"For the management activity of a collective investment agency in foreign securities recognized in accordance with Directive 2009/65/EC of the European Parliament and the Council of 13 July 2009, the notified project also includes a description of the risk management process established by the portfolio management company and a description of the procedures and procedures for processing claims. » ;
3° The last sentence of II is deleted;
4° After II, it is inserted a III as follows:
"III. ― Where a portfolio management company wishes to carry out the management activity of one or more foreign securities collective investment bodies approved in accordance with the Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009, the Autorité des marchés financiers attached to the documentation sent to the competent authorities of the Member State of host of the portfolio management company, a certificate confirming that the said corporation was approved, in accordance with the provisions of the Directive 2009 »
Article R. 532-29 of the same code is amended as follows:
1° The words: "European Community" are replaced by the words: "European Union";
2° It is added a paragraph to read:
"The Autorité des marchés financiers (AMF) shall update the information contained in the attestation referred to in the III of Article R. 532-28 and shall inform the competent authorities of the host Member State of the portfolio management company of any change in the scope of the approval granted to the said corporation or in the details of any possible restrictions on the types of securities collective investment organizations that the corporation is authorized to manage. »
At 2° of R. 533-15 of the same code, the reference: "L. 214-12" is replaced by the reference: "L. 214-23-1".
After the article R. 621-37, an article R. 621-37-1 is inserted as follows:
"Art. R. 621-37-1. - When the Secretary General proposes to the College the designation of a provisional administrator pursuant to Article L. 621-13-1, the Secretary General shall first indicate to the person concerned by registered letter with request for notice of receipt, hand-over against receipt or act of bail, the reasons that appear to him to justify such action. He specifies that he has a period of time that he sets at least three working days to make his observations known in writing.
"Before deciding, the College is aware of the comments made, if any, by the person concerned.
"If, in the light of the urgency, the College has pronounced itself without conflicting procedure, the Autorité des marchés financiers shall promptly initiate the contradictory procedure described above. The Autorité des marchés financiers finalizes within three months.
"The appointment decisions of a provisional administrator made pursuant to section L. 621-13-1 specify the foreseeable duration of the assignment as well as the conditions of monthly remuneration, which, in particular, take into account the nature and importance of the mission and the situation of the designated administrator.
"Decisions made pursuant to Article L. 621-13-1 shall be notified by registered letter with request for notice of receipt, hand-delivered against receipt or act of bail or by any other means to ensure the date of receipt. »
The insurance code is amended:
1° Section R. 142-14 is amended as follows:
(a) At 2°, the words: "under section 6 of chapter IV, section 1, of Book II, of the monetary and financial code (regulatory portion)" are replaced by the words: "the assets of which include more than 10% of the shares or shares of securities collective investment organizations or investment funds referred to in c of Article L. 214-20 of the Monetary and Financial Code » ;
(b) At 3°, the words: "when they do not benefit from a procedure for mutual recognition of approvals within the meaning of Council Directive 85/611/EEC of 20 December 1985 coordinating the legislative, regulatory and administrative provisions concerning certain securities collective investment bodies" are replaced by the words: "when they have not been approved in accordance with Directive No. 2009/65/EC of the European Parliament and the Council of 13 July 2009
2° Section R. 332-2 is amended as follows:
(a) The references: "L. 214-35-2", "L. 214-36", "L. 214-37", "L. 214-38", "L. 214-41", "L. 214-41-1" and "R. 214-36" are replaced respectively by the references: "L. 214-36", "L. 214-28", "L. 214-38", "L. 214-31", "L. 214-38
(b) At 7° ter of the A, the words: "of collective investment organizations in securities with a reduced investment rule without leverage mentioned to theArticle R. 214-29 of the Monetary and Financial Code or collective investment organizations in securities with a levers-based investment rules referred to in section R. 214-32 of the same code are replaced by the words: "a collective investment organization in securities with a reduced investment rules referred to in theArticle R. 214-83 of the Monetary and Financial Code » ;
3° In R. 332-14, the words: "subsections 1 to 8" are replaced by the words: "subsection 1 and section L. 214-27 of subsection 2".
4° The 3rd of article R. 426-5 is thus amended:
(a) In b, the words: "The negotiable debt securities satisfying the conditions of I or II of Article R. 214-2" are replaced by the words: "The instruments of the monetary market referred to in Article L. 214-20 (b));
(b) In c, the words: "satisfactory respectively to the conditions referred to in sections R. 214-3 and R. 214-4" are replaced by the words: "specified in article L. 214-20, d and f."
Annex II to the General Tax Code is amended as follows:
1° In the second paragraph of Article 50 decies, the reference: "L. 214-8" is replaced by the reference: "L. 214-17";
2° In II of Article 171 AM, the reference: "R. 214-38" is replaced by the reference: "R. 214-35";
3° In sections 171 AU, 171 AV and 171 AW, the words "1 of Article L. 214-36" and "3 of Article L. 214-36" are replaced respectively by the words "I of Article L. 214-28" and "III of Article L. 214-28".
The mutuality code is thus modified:
1° Section R. 212-31 is amended as follows:
(a) The references: "L. 214-35-2", "L. 214-36", "L. 214-37", "L. 214-38", "L. 214-41", "L. 214-41-1" and the words "at R. 214-36" are replaced respectively by the references: "L. 214-36", "L. 214-28", "L. 214-38", "Article R. 214-86 of the Monetary and Financial Code » ;
(b) At 10° ter of the A, the words: "of levers collective investment organizations referred to in R. 214-29 or collective investment organizations in securities with levers-based investment rules referred to in R. 214-32" are replaced by the words: "of collective investment organizations in securities with reduced investment rules referred to in R. 214-32"Article R. 214-83 of the Monetary and Financial Code » ;
2° In article R. 212-46, the words: "subsections 1 to 8" are replaced by the words: "of sub-section 1 and article L. 214-27 of sub-section 2", the words: "the European Community" are replaced by the words: "the European Union" and the words: "community directive n° 85/611/ EEC of 20 December 1985 amended on collective investment bodies"
The Social Security Code is thus amended:
1° At 6° of the I of Article R. 623-3, the words: "Actions of companies of investment with variable capital and shares of mutual funds of risk investments governed by subsections 7 and 9 of chapter IV, section 1, of Book II of the monetary and financial code" are replaced by the words: "Parties of mutual funds of investment governed by the Articles L. 214-28, L. 214-30, L. 214-37 and L. 214-38 of the monetary and financial code » ;
2° In R. 623-6, the words: "subsections 1 to 6" are replaced by the words: "subsection 1 and section L. 214-27 of sub-section 2" and the words: "community directive of 20 December 1985 on collective investment bodies in securities" are replaced by the words: "guideline No. 2009/65/EC of the European Parliament and the Council of 13 July 2009 on the coordination of certain administrative arrangements
3° Section R. 931-10-21 is amended as follows:
(a) The references: "L. 214-35-2", "L. 214-36", "L. 214-37", "L. 214-38", "L. 214-41", "L. 214-41-1" and the words "at R. 214-36" are replaced respectively by the references: "L. 214-36", "L. 214-28", "L. 214-38", "Article R. 214-86 of the Monetary and Financial Code » ;
(b) At the 9° ter of A, the words: "of levers collective investment organizations referred to in R. 214-29 or collective investment organizations in securities with levers-based investment rules referred to in R. 214-32" are replaced by the words: "of collective investment organizations in securities with reduced investment rules referred to in R. 214-32"Article R. 214-83 of the Monetary and Financial Code » ;
4° In article R. 931-10-35, the words: "subsections 1 to 8" are replaced by the words: "subsection 1 and article L. 214-27 of sub-section 2", the words: "the European Community" are replaced by the words "the European Union" and the words "community directive n° 85/611/ EEC of 20 December 1985 amended on the bodies of 2009
In R. 3332-27 of the Labour Code, the reference: "L. 214-40-1" is replaced by the reference: "L. 214-41".
The Minister of Economy, Finance and Industry is responsible for the execution of this Order, which will be published in the Official Journal of the French Republic.
Done on 1 August 2011.
François Fillon
By the Prime Minister:
Minister of Economy,
finance and industry,
François Baroin
