Section 7: Provisions applicable to investment services providers relating to the design and distribution of financial instruments

Investment services providers other than portfolio management companies which design financial instruments for sale to clients : 1° Maintain, apply and review a validation process for each financial instrument and for significant adaptations of existing financial instruments before they are marketed or distributed to clients. This validation process determines a defined target market of end clients within the relevant client category for each instrument and ensures that all relevant risks…

Investment services providers offering, recommending or marketing financial instruments: 1° Ensure that they understand the characteristics of these financial instruments and assess their compatibility with the needs of the clients to whom they provide investment services, in particular in relation to the defined target market; 2° Ensure that financial instruments are offered or recommended only in the interests of the client; 3° Review these financial instruments on a regular basis,…

Investment service providers other than portfolio management companies that design financial instruments for sale to clients and investment service providers that offer, recommend or market financial instruments are not subject to the obligations set out in Article L. 533-24 and 1° to 3° of Article L. 533-24-1 when the investment service they provide relates to bonds that do not incorporate a derivative other than a redemption clause with early redemption…