The AMF reminds distributors of their requirements regarding marketing of investment fund

The Autorité des Marchés Financiers (AMF) has noted growing interest among distributors and retail investors in foreign investment funds, particularly with a view to portfolio diversification. The AMF reminds distributors that, before marketing an investment fund, they are required to check that it is authorised for marketing in France and, before any subscription, even without marketing, that it has, if the client is not a professional one, a key information document (PRIIPs KID).

An investment fund, such as a UCITS or an AIF, is deemed to have been marketed in France when (i) it is presented on French territory by different means and (ii) this presentation is carried out with a view to encouraging an investor to subscribe or purchase it. This is the case, for example, when providing investment advice in relation to such a product, or carrying out promotional activities. Marketing could also take the form of displaying this investment fund in the "online bank" catalogue, particularly if the client has the option of subscribing to it from this catalogue.

Before marketing investment funds, distributors must ensure that these products are authorised to be marketed in France to the clients targeted by this marketing. Depending on the case, this marketing can be an authorisation issued by the AMF, a notification of marketing in France (if the product falls under the European passport) and/or a marketing authorisation. It should be recalled that only UCITS and AIFs authorised under the ELTIF Regulation that meet certain requirements are eligible for the European passport, which allows them to be marketed to retail clients. The AMF also highlights that it makes a list of French and foreign investment funds authorised to be marketed in France available to market participants via the GECO database.

The AMF further draws distributors' attention to the fact that exchange-traded funds (ETFs) are investment funds and are therefore subject to the above rules.

Moreover, the AMF recalls that distributors remain responsible for complying with their professional requirements when they use third parties, whether regulated or not, to verify authorisations to market investment funds, such as external data providers.

Finally, regardless of whether or not a fund is marketed in France, retail investors must be provided with a key information document ("PRIIPs KID") sufficiently in advance of any subscription to an investment fund, including those from third countries (and even if the subscription is made on the investor's own initiative).