Section VI: Forward financial instruments of insurance undertakings.

An insurance undertaking may use a financial futures instrument within the meaning of Article L. 211-1 of the Monetary and Financial Code, linked to an investment or group of investments held or to be held if the following conditions are met throughout the transaction: a) The investment or group of investments is held or has been acquired forward with a maturity date prior to the maturity or exercise date of…

An insurance undertaking may use a financial futures instrument in anticipation of an investment if the following conditions are met throughout the transaction: a) The undertaking holds or will receive before the maturity or exercise date of the instrument an amount of cash at least equal to the notional amount of the instrument. Where the forward financial instrument does not give rise to any financial obligation for the company on…

An insurance undertaking may use a forward rate or currency instrument linked to a financial debt if the following conditions are met throughout the transaction: a) The loan contracted or the debt issued is identical or equivalent to the underlying of this instrument; b) For swap contracts, the underlying referred to in a) is the one that the company undertakes to exchange; c) The amount of the loan contracted or…

Unless expressly exempted by the Autorité de contrôle prudentiel et de résolution, an insurance undertaking may only use forward financial instruments in the cases provided for in Articles R. 332-45, R. 332-46 and R. 332-47. Any forward financial transaction which no longer complies with the conditions set out in these articles must be unwound within three months, and is the subject of a detailed analysis in the report provided for…

An insurance undertaking may only sell options in the following cases: a) To sell an option previously acquired within the framework defined by Articles R. 332-45 to R. 332-48; b) Sell an option when the insurance undertaking simultaneously purchases a similar option, with the only difference being the exercise price; c) Sell a call option on condition that the underlying asset is an investment already held, to the exclusion of…

Unless the Autorité de contrôle prudentiel et de résolution grants a waiver on a case-by-case basis, in particular to take account of an overall change in market conditions, the sum of the positive realisable values of all over-the-counter financial futures instruments entered into with all counterparties may not exceed 10% of the basis of dispersion defined in the first paragraph of Article R. 332-3 . Positive realisation values may be…

Unless the Autorité de contrôle prudentiel et de résolution grants a waiver on a case-by-case basis, the amount of cash receivable from assets referred to in 1°, 2°, 2° bis and 2° ter of A of Article R. 332-2 which are subject to early investment transactions in securities of the same type may not exceed 20% of the dispersion base defined in the first paragraph of Article R. 332-3. In…

An insurance undertaking may only underwrite financial futures instruments: 1. On recognised markets within the meaning of the last paragraph of A of Article R. 332-2 ; 2. Over-the-counter, with : a) Credit institutions and investment firms having their registered office in one of the Member States of the European Community or parties to the Agreement on the European Economic Area ; b) The bodies referred to in Article L….

The sum of the positive realisation values of all the contracts entered into with the same company or several companies belonging to the same group within the meaning of article R. 332-13 is taken into account in the ceiling mentioned in 1° of article R. 332-3-1. Positive realisable values may be offset against negative realisable values of forward financial instruments entered into with the same entity, if there is a…

The sum of the positive realisation values of forward financial instruments entered into over-the-counter with the same company or several companies belonging to the same group within the meaning of article R. 332-13 may not exceed 0.5% of the basis of spread defined in the first paragraph of article R. 332-3. Positive realisable values may be offset against negative realisable values of forward financial instruments entered into with the same…