
Investment service: amendment of the French definition of reception and transmission of orders
The Decree of August 22, 2023 on the definition of investment services was published in the Official Journal of August 24, 2023.
This decree modifies the French definition of the investment service of "reception and transmission of orders in relation to one or more financial instruments" (RTO) specified in the Monetary and Financial Code.
The main amendment is to remove the condition that the order must be transmitted to an investment firm or to an entity with equivalent status in a country that is not a member of the European Union or a party to the Agreement on the European Economic Area. This condition was a French specificity.
The amendment aims to:
- adapt the definition of this service to the entry into application on November 10, 2021 of the Regulation on European crowdfunding service providers for business (Crowdfunding Regulation), as the entities subjected to this text provide the RTO service even though they transmit the order to an entity that is not an investment firm (for example, to an issuer or a project owner) ;
- foster alignment of the French definition of the RTO service with those of other European countries, in the absence of a harmonized definition of this service under MiFID 2.
The AMF therefore draws attention to the fact that receiving an order from a third party and then transmitting it to another entity with a view to executing a transaction now constitutes an RTO service, regardless of the quality of the entity to which the order is transmitted. Accordingly, this activity requires the corresponding authorisation if it is carried out on a regular basis and does not fall within one of the exceptions envisaged by applicable provisions.
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Head of publications: The Executive Director of AMF Communication Directorate. Contact: Communication Directorate – Autorité des marches financiers 17 place de la Bourse – 75082 Paris cedex 02