Investment Services Providers (ISPs) : Asset Management Companies and other ISPs
Investment services providers are investment firms and credit institutions that have been authorised to provide investment services within the meaning of Article L. 321-1 of the Monetary and Financial Code (receiving and transmitting orders for third parties, executing orders for third parties, trading for own account, asset management, underwriting and placing).
The AMF lays down the conduct of bussiness rules and obligations that must be fulfilled by authorised professionals to provide investment services and investment advice.
- Asset Management Companies
Under Article L. 532-9 of the Monetary and Financial Code, asset management companies are investment firms whose main business is asset management (the service referred to in paragraph 4 of Article L. 321-1 of the Monetary and Financial Code).
The AMF gives an authorisation to asset management companies when they are set up. Before granting this authorisation, the AMF checks the following:
- that the company's registered office and central administration is located in France;
that the company has sufficient initial capital and the required legal form to carry out asset management activities;
that it has provided the names of shareholders with significant equity holdings, along with the amounts of these holdings, to allow the AMF to assesses their qualifications;
That it is actually managed and its policies are determined by individuals having the necessary integrity, qualifications and experience for their positions.
To receive an authorisation, asset management companies must also have a programme of operations. This must be commensurate with the planned scale of activity and must be regularly updated.
The list of authorised asset management companies is available on the AMF website, at Geco database.
- Other Investment Services Providers (ISP's)
These firms carry on the business of asset management as an ancillary activity and are approved by the French Prudential Supervisory Authority (Autorité de contrôle prudentiel - ACP). The AMF issues an opinion on their programme of operations.
The list of investment services providers other than asset management companies is available on the ACP website: http://www.acp.banque-france.fr/accueil.html.
Update: 24 January 2012