French Business Law - French Legislation

Article L214-8-6 of the French Monetary and Financial Code

November 8, 2023

The fund manager, the board of directors or the management board of the management company appoints the fund’s auditor for a period of six financial years, after obtaining the approval of the Autorité des marchés financiers. The appointment of an alternate auditor is not required. Fund unitholders shall exercise the rights conferred on shareholders by articles L. 823-6 and L. 823-7 of the French Commercial Code. The statutory auditor shall…

Article L214-8-7 of the French Monetary and Financial Code

November 8, 2023

The redemption by the fund of its units and the issue of new units may be temporarily suspended by the management company when exceptional circumstances so require and if the interests of the unitholders or the public so dictate, under conditions laid down in the fund regulations. In the same circumstances, when the disposal of certain assets would not be in the interests of the unitholders, the other assets may…

Article L214-8-8 of the French Monetary and Financial Code

November 8, 2023

The fund is represented vis-à-vis third parties by the company responsible for its management. This company may take legal action to defend or assert the rights or interests of unitholders.

Article L214-8-9 of the French Monetary and Financial Code

November 8, 2023

The management company is required to make the declarations stipulated in articles L. 225-126 and L. 233-7 of the French Commercial Code, for all shares held by the mutual funds it manages. The provisions of II and III of article L. 225-126 and of articles L. 233-14 and L. 247-2 of the French Commercial Code are applicable.

Article L214-9 of the French Monetary and Financial Code

November 8, 2023

The UCITS, the depositary and the management company shall act honestly, fairly, professionally, independently and solely in the interests of the UCITS and its unit-holders or shareholders. They must offer sufficient guarantees with regard to their organisation, their technical and financial resources, and the good repute and experience of their managers. No SICAV or management company may act as depositary.

Article L214-9-1 of the French Monetary and Financial Code

November 8, 2023

For the purposes of this section, the management body of the UCITS, of the depositary or of the management company means the body which: 1° Has the ultimate power of decision within the UCITS, the depositary or the management company; 2° Performs both management and supervisory functions, or only the management function when these two functions are separate.

Article L214-10 of the French Monetary and Financial Code

November 8, 2023

The SICAV or the UCITS management company shall ensure that a single depositary is appointed. In accordance with the conditions laid down in the general regulations of the Autorité des marchés financiers, the appointment of the custodian is evidenced by a written contract. This contract defines in particular the information required to enable the custodian to fulfil its duties.

Article L214-10-1 of the French Monetary and Financial Code

November 8, 2023

I. – Only the following may act as UCITS depositories: 1° The Banque de France ; 2° The Caisse des dépôts et consignations ; 3° Credit institutions having their registered office in France; 4° Credit institutions having their registered office in a Member State of the European Union or party to the Agreement on the European Economic Area other than France, through their branches established on French territory carrying out…

Article L214-10-2 of the French Monetary and Financial Code

November 8, 2023

The depositary may not engage in activities relating to the UCITS or the management company acting on its behalf which could give rise to conflicts of interest between the UCITS, the unit-holders or shareholders of the UCITS, the management company and the depositary itself, unless the depositary has functionally and hierarchically separated the performance of its depositary duties from its other duties and the potential conflicts of interest have been…

Article L214-10-3 of the French Monetary and Financial Code

November 8, 2023

I. – Assets held by the custodian shall not be re-used by the custodian, or by any third party to whom the custodian’s custodial function has been delegated, for their own account. A re-use is any operation relating to the assets held in custody, in particular their transfer, commitment, sale or loan. II. – Assets held by the custodian may only be re-used if : 1° The assets are reused…

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Legislative part

Article L214-8-6 of the French Monetary and Financial Code

Article L214-8-7 of the French Monetary and Financial Code

Article L214-8-8 of the French Monetary and Financial Code

Article L214-8-9 of the French Monetary and Financial Code

Article L214-9 of the French Monetary and Financial Code

Article L214-9-1 of the French Monetary and Financial Code

Article L214-10 of the French Monetary and Financial Code

Article L214-10-1 of the French Monetary and Financial Code

Article L214-10-2 of the French Monetary and Financial Code

Article L214-10-3 of the French Monetary and Financial Code

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Legislative part

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