Book V: Service providers

Investment service providers, other than asset management companies, shall ensure that they do not remunerate or assess the performance of their employees in a way that undermines their duty to act in the best interests of their clients when providing investment services. They shall not take any action, in particular in the form of remuneration or sales targets, which might encourage their employees to recommend a particular financial instrument to…

Investment service providers other than portfolio management companies shall ensure and be able to demonstrate to the AMF that the natural persons who provide investment advice or information on financial instruments, investment services or related services to clients on their behalf have the knowledge and skills necessary to comply with the obligations laid down in this section.

Investment service providers may not send, directly or indirectly, by electronic means, promotional communications to clients who are likely to be non-professional, in particular potential clients, relating to the provision of investment services concerning financial contracts that are not admitted to trading on a regulated market or a multilateral trading facility, falling within one of the categories of contracts defined by the General Regulation of the Autorité des marchés financiers…

I.-In order to provide the services mentioned in 4 or 5 of Article L. 321-1, investment service providers other than portfolio management companies shall obtain the necessary information concerning the investment knowledge and experience of their clients, in particular their potential clients, in relation to the specific type of financial instrument or service, their financial situation, including their capacity to incur losses, and their investment objectives, including their risk tolerance,…

If a property loan within the meaning of Chapter III of Title I of Book III of the Consumer Code subject to the provisions relating to the assessment of consumer solvency includes as a precondition the provision to the consumer of an investment service relating to mortgage bonds issued specifically to obtain the financing for the property loan and with identical terms and conditions to the latter, so that the…

Investment service providers other than portfolio management companies shall keep a record, including the document or documents approved by themselves and their clients, setting out the rights and obligations of the parties and the other conditions under which the former provide services to the latter. For the purposes of the first paragraph, the rights and obligations of the parties to the contract may be determined by reference to other documents…

I.- Investment service providers other than portfolio management companies shall report to their clients, in a durable medium, on the services provided to them. The report shall include periodic communications to clients depending on the type and complexity of the financial instruments concerned and the nature of the service provided to clients and, where applicable, the costs associated with the transactions carried out and the services provided on behalf of…

Articles L. 533-11 to L. 533-15 apply taking into account the nature of the service offered or provided, the nature of the financial instrument in question, and the professional or non-professional nature of the client, particularly the potential client. A professional client is a client who has the experience, knowledge and skills necessary to make his own investment decisions and properly assess the risks involved. A decree specifies the criteria…

An investment service provider other than an asset management company who receives an instruction to perform investment or related services on behalf of a client from another investment service provider other than an asset management company may rely on the due diligence performed by the latter investment service provider. The investment service provider who has issued the instruction remains responsible for the completeness and accuracy of the information transmitted. An…

I.- Investment services providers other than portfolio management companies shall take all reasonable steps to obtain, when executing orders, the best possible result for their clients having regard to price, cost, speed, likelihood of execution and settlement, size, nature of the order or any other considerations relating to the execution of the order. Nevertheless, whenever there is a specific instruction given by clients, ISPs execute the order in accordance with…