I OVERVIEW OF RECENT ACTIVITY

France has one of the most dynamic investment fund markets in Europe. Various types of retail funds (such as undertakings for the collective investment of transferable securities (UCITS)) and professional investment funds have been available for investment by French and foreign investors for many years.

The French asset management industry is one of the largest in the world, with assets under management by collective investment schemes (excluding discretionary mandates and securitisation vehicles) of €1,407 billion at the end of 2015.2 France is also the second-largest asset management centre in Europe, with a market share of 16.3 per cent at the end of 2014 with respect to the financial management of collective management schemes domiciled in Europe.3

Over the past 16 years, the number of French asset management companies has almost doubled, from 350 in 1999 to more than 630 today, and France has the largest mutual fund industry in Europe in terms of the number of management companies.4

The French asset management industry is considered as an ecosystem of skills and functions with global participants (three global custodians in the top 10 worldwide and four groups of asset managers in the top 20 worldwide), as well as niche portfolio management companies specialising in alternative investment management strategies.

Assets under management in France (including discretionary mandates) increased in 2013, up 4.1 per cent (with total assets above €3,250 billion at the end of December 2014), corresponding to a growth in volume of approximately €91 billion.5

II GENERAL INTRODUCTION TO the REGULATORY FRAMEWORK

i Applicable regulations for asset management activities

French regulations on asset management are provided in the following documents, which specifically implement the European asset management regulations (the UCITS Directive and the AIFM Directive (AIFMD)) into French law:

  • a the Monetary and Financial Code (MFC), with legislative and regulatory parts (Book II and Book V) that set out the main rules applicable to participants (portfolio management companies (SGPs) or custodians) and products (generally, investment funds);
  • b regulations of the AMF, which encompass the General Regulations of the AMF, and other instructions and recommendations; and
  • c the policies and by-laws of professional associations such as the French Asset Management Association or the French Association of Private Equity Funds, as their ethics codes may be subject to specific approval by the AMF.6
ii Asset management supervision

The AMF is an independent administrative authority entrusted with the duties to protect the savings invested in financial instruments and all other investments that give rise to public offerings, control the information provided to investors and ensure the orderly functioning of the markets in financial instruments.

As far as asset management is concerned, the AMF is the prudential supervisor of portfolio management companies and the investment funds they manage. The main duties of the AMF include:

  • a the preparation of regulations and rules of good conduct applicable to the asset management industry, including licensing procedures of SGPs and investment funds, as well as the regulations applicable to the activities of depositaries;7 the AMF has the power to draft its own regulations, which are subject to homologation (i.e., stamping) by the Ministry of Finance;8
  • b the licensing of French asset managers, SGPs and investment funds;
  • c the prudential and ongoing supervision of SGPs and investment funds;
  • d checks and investigations into the activities of SGPs and depositaries (including on-site inspections);9
  • e the imposition of disciplinary sanctions on SGPs, investment funds and depositaries by a separate and independent enforcement committee of the AMF;10 and
  • f supervision of the marketing conditions of French and foreign investment funds (in particular, those marketed to retail clients).
iii Regulation of asset managers
Licensing requirements

SGPs form a category of investment firms whose main business is to provide portfolio management services on behalf of third parties or to manage UCITS and alternative investment funds (AIFs, compliant with the AIFMD).11

In this respect, a company that wishes to manage French collective investment schemes, whatever their form (UCITS, private equity funds or real estate funds), must, as a matter of principle, first be duly licensed by the AMF as an SGP (the same requirements apply to self-managed investment funds).

Under the French licensing procedure, the licence given by the AMF is not generic.12 This means that an SGP authorised to manage UCITS and discretionary mandates will need to be further authorised by the AMF if it wishes to manage AIFs investing in real estate assets or receivables. In addition, the SGP may also be specifically authorised to perform certain investment services (investment advice, reception and transmission of orders for SGPs licensed to manage AIFs) and to perform ancillary activities (such as insurance brokerage).

The licensing procedure consists of submitting an application file to the AMF, which has a maximum of three months in which to grant the licence to the SGP.

Before licensing a company as an SGP, the AMF will verify in particular that:

  • a the company’s registered office and central administration is located in France;
  • b the company has sufficient initial capital (minimum share capital of €125,000 plus additional amounts of share capital above certain thresholds depending on the assets under management);
  • c the company has provided the names of shareholders with significant equity holdings to allow the AMF to assess their qualifications; and
  • d the company is managed and its policies are determined by individuals with the necessary integrity, qualifications and experience commensurate with their positions.13

An additional and key condition is that SGPs must have a structure and procedures in place tailored to the specific asset management activities, most importantly skilled managers, sufficient human and technical resources, suitable internal controls and risk management (with internal procedures, preventing conflicts of interests), and a viable business plan.

SGPs managing AIFs are also subject to additional requirements (additional own funds, liquidity management, valuation policy, etc.).

French SGPs, once licensed, may take advantage of the passporting procedure provided for by European regulations to perform their activities in other EU Member States (for instance, managing AIFs domiciled in other Member States).

Ongoing requirements

SGPs, while managing investment funds, are subject to different regulations deriving specifically from European regulations (the Markets in Financial Instruments Directive (MiFID), the UCITS Directive and the AIFMD) that impose specific rules of good conduct and best practice with which they must comply, and to which they are required to adapt their organisation and procedures. SGPs must mainly comply with regulations and rules of good conduct and best practice relating to:

  • a categorisation of clients;
  • b best-execution policy;
  • c prevention of conflicts of interest;
  • d organisational requirements (remuneration policy, reporting (in particular, for SGPs managing AIFs and using substantial leveraging), subcontracting of activities (with specific regulations on the delegation of the financial management), compliance, risk control and periodic control);
  • e valuation of assets;
  • f liquidity management;
  • g market regulations (insider dealing and market abuse, short-selling restrictions); and
  • h the fight against money laundering and the financing of terrorism (when providing investment services or marketing their shares or units).14

SGPs are subject to control by the AMF, at the time of their creation and then on a regular basis throughout their existence.

iv Regulations of investment funds

As a matter of principle, French collective investment schemes are subject to licensing requirements and must (or their portfolio management company must on their behalf) apply for and receive a licence from the AMF before they begin marketing.

The AMF grants the licence to the investment fund within one month of the submission of the application (containing all the requested documents and information). In the event that additional information is requested by the AMF, the review of the file is suspended until receipt of such information.

Certain types of AIFs reserved to professional investors are not subject to licensing requirements (e.g., specialised professional funds or professional venture capital funds). SGPs of such investment funds need only notify their creation to the AMF within one month of the date of their constitution.

v Regulation of French depositaries

France has recently implemented under French law the provisions of the UCITS V Directive of 23 July 2014.15

The assets of investment funds (UCITS or AIFs) must be held by independent depositaries, which have two main functions:

  • a to act as custodian of the assets of the investment funds, as follows:

• the depositary shall hold in custody those financial instruments that can be registered in a financial instruments account opened in the depositary’s books, and all financial instruments that can be physically delivered to the depositary;

• for other assets, the depositary shall verify the ownership of the fund (AIF or AIFM acting on behalf of the AIF of such assets) and shall maintain a record of those assets for which it is satisfied that the SGP acting on behalf of the fund holds the ownership of such;

  • b the depositary shall, in general, ensure that the fund’s cash flows are properly monitored, and shall particularly ensure that all payments made by or on behalf of investors upon the subscription of units or shares of an AIF or UCITS have been received and that all cash of the AIF or the UCITS has been booked in cash accounts opened in the name of the AIF;16 and
  • c to monitor the SGP’s decisions to ensure that they comply with French regulations and the articles of association or regulations of each investment fund.

The depositary must have its registered office in France and be chosen from a limited list of entities, including a credit institution (or investment firm) authorised to perform custody activities by the French Prudential and Resolution Supervisory Authority (the regulator in charge of supervising credit institutions and investment firms).17

The depositary may delegate total or partial custody of the assets of the investment funds to a third party but remain, as a matter of principle, responsible for the return of any fund assets that may be lost while held in sub-custody. Any limitation of such liability may be contractually provided for AIFs, under specific conditions. Such arrangements for the limitation of liability are, however, prohibited with respect to UCITS.18

vi Marketing regulations
Definition and perimeter of marketing activities

The AMF defines the marketing of shares or units of investment funds (be they UCITS or AIFs) as the presentation of the relevant shares or units of UCITS or AIFs through different means (advertising, solicitation, advice, etc.) with a view to encouraging an investor client to buy or subscribe to them.19

The AMF also admits that in certain specific cases, investors may become shareholders or unitholders of such Ucits or AIFs through the mere purchase, sale or subscription of shares or units of an AIF without a marketing action being characterised in France; the relevant cases are described as follows from an AMF position:20

In July 2016, the AMF introduced the concept of ‘premarketing’ of funds in France. In particular, the practice of management companies contacting up to a maximum of 50 investors (professionals or individuals whose initial subscription would be at least €100,000) to assess their interest prior to the launch of a UCITS or AIF will no longer constitute an act of marketing, provided that the investors are not given a subscription form or documentation containing definitive information on the fund’s characteristics. However, any subsequent subscription by the investors contacted will be considered to constitute an act of marketing.

In July 2016, the AMF also clarified other situations that would not trigger the application of marketing rules in France, such as the participation by a management company in conferences or meetings of professional investors, provided the investors are not asked to invest in a specific product, over-the-counter trades between investors or the purchase, sale or subscription of units or shares in UCITS or AIFs in the context of a management company’s compensation policy.

French asset managers must comply with specific rules when marketing the investment funds they manage.

Establishment of the relationship with investors

Specific regulations apply to the content of promotional documents, which must, most importantly, be clearly identifiable as advertisements, and be accurate, clear and in no way misleading.

In addition, persons who market the shares or units of a investment fund in France, whose articles, rules or any other investor information are written in another language customary in the sphere of finance, must ensure that documents distributed are targeting professional investors,21 and are not distributed to retail investors unless they are available in French.

Investment funds must also provide the public with a French version of the key investor information document, and also ensure that compulsory investor information is available on the premises of any institutions authorised to take subscription and redemptions.

The distributor must also enter into an agreement with the SGP whereby the SGP undertakes to review the advertising documents prepared by the distributor before their dissemination to ensure their compliance with the provisions of the fund’s prospectus.22

Additional requirements may also apply when investment funds are marketed to retail clients (such as the requirements laid down in the AMF’s policy relating to the marketing of shares or units in complex collective investment schemes).

Provision of investment services

Since the implementation of MiFID into French law, the distribution of investment funds falls under the provisions of the MFC and the General Regulations of the AMF applying to the provision of the investment services of reception and the transmission of orders and investment advice.

The provision of such investment services is restricted to duly licensed investment services providers (French or passported from another EEA Member State) and to French financial advisers that benefit from an exemption that authorises them to provide investment advice, or to receive and transmit orders in respect of units or shares of investment funds without necessarily being licensed as investment services providers.23

Marketing in France of foreign UCITS or AIFs

Any foreign UCITS must be notified to the AMF by the competent authority of the fund’s home state before it can market its shares or units in France. Foreign UCITS in France must also appoint one or more financial correspondents whose duties are, inter alia, the treatment of subscriptions, redemptions, the information of shareholders and the payment of the AMF annual royalty.

The passport regime for marketing foreign AIFs in France towards professional clients was implemented in July 2013 and was specified by the AMF in July 2014.24 It should be noted that non-EU AIFMs managed by an AIFM based outside of the EEA or based inside the EEA do not benefit from the AIFMD passport when marketed towards professional clients, and must therefore be authorised by the AMF, subject to certain conditions. The passport mechanism may be extended to this type of fund at a later stage. The appointment of a centralising correspondent by the foreign AIF marketed in France is required only when the foreign AIF is passported in France and is marketed towards non-professional clients, or when the foreign AIF is marketed in France under a procedure of marketing without a passport.25

III COMMON ASSET MANAGEMENT STRUCTURES

French investment funds are divided in two main categories that differ mainly regarding their legal form (i.e., whether they are constituted under a corporate form or not incorporated):

  • a an investment company with variable capital (SICAV): an open-ended company subject to general corporate regulations applicable to limited liability companies and to specific asset management regulations; and
  • b a mutual fund trust (FCP): a common fund that issues units to be subscribed to by its unitholders. The FCP is the most common form of investment fund on the French market (except for real estate AIFs, where the SICAV form is more commonly used). An FCP (which is not a legal entity but a co-owned form of assets) must be established by an SGP (which represents the FCP and manages its assets).

A range of investment vehicles are commonly used for asset management activities in France, depending on the type of investor and the investment strategy to be implemented (see Section VI, infra).

IV MAIN SOURCES OF INVESTMENT

At the end of September 2015, the main investors in investment funds (with the exception of money market funds) were insurance companies (36 per cent) followed by retail clients (21 per cent).26 The situation is different for money market funds where, on 30 May 2016, the main investors were insurance companies (30 per cent) and non-financial companies (24 per cent). Non-residents account for less than 13 per cent of investment in money market funds.27

V KEY TRENDS

The implementation into French law of the AIFMD in July 2013 was used as an opportunity to modify the French asset management regulations in order to render them more competitive, in particular for foreign investors and sponsors.

One of the main modifications was to simplify the range of products, leading to fewer categories of investment funds with two distinct set of regulations (i.e., one set for UCITS and another for AIFs). The reform was also an opportunity to introduce innovative new mechanisms in French asset management regulations, in particular:

  • a mechanisms enhancing the liquidity of AIFs by introducing an anti-dilution levy and swing pricing mechanisms in France;
  • b the right of certain types of AIFs to invest on an ancillary basis (10 per cent) in receivables; and
  • c harmonisation and simplification of the minimum thresholds for investing in AIFs (there is no threshold for AIFs available to retail investors and a €100,000 threshold for professional AIFs).

VI SECTORAL REGULATION

i Insurance

French insurance companies are under the obligation to invest regulated liabilities corresponding to life insurance policies subscribed to by their clients (unit-linked life insurance policies and euro life insurance policies) in limited types of asset listed by the French Insurance Code, and are subject to diversification rules in their investments.28

Mainly, they invest their assets in investment funds, real estate assets
and receivables.

For the purpose of the management of such assets, French insurance companies may conclude discretionary mandates with SGPs or invest such assets in dedicated investment funds.

ii Pensions

The structure of the French pension system is fragmented and complex, and dominated by mandatory pension schemes and mandatory supplementary schemes organised on a professional basis.

Such schemes are subject to specific investment rules provided for by regulations or by their internal rules, but they do not qualify as investment funds per se. They may, however, invest some of their assets in investment funds, depending on their internal rules.

iii Real property
Categories of investment structure and licensing requirements

Following the implementation into French law of the AIFMD,29 French real estate funds that qualify as AIFs are divided into two categories: OPCIs, which are a type of AIF open to retail investors; and professional OPCIs,30 which are a type of fund open only to professional investors.31

Both OPCIs and professional OPCIs must be licensed by the AMF before starting investment activities.

Categories of investors to whom funds may be marketed

Subscriptions to professional OPCIs are available to French and foreign professional investors (e.g., banks, investment firms or insurance companies),32 and also to other categories of investor (companies and individuals) subject to a minimum investment of €100,000 and compliance with certain conditions as to resources or professional competence, as defined in the General Regulations of the AMF.

Investment policy

The main feature of OPCIs’ investment policy is that they must invest at least 60 per cent of their assets in eligible real estate assets (rental properties), directly or through other eligible companies.

OPCIs are subject to diversification rules.33 Professional OPCIs benefit from relaxed diversification rules.34

Liquidity mechanisms

To maintain liquidity for their unitholders, OPCIs must invest at least 5 per cent of their assets in cash, deposits and liquid financial instruments.35 Professional OPCIs benefit from relaxed liquidity rules.

Other features

As with other investment funds, OPCIs must be managed by an SGP (specifically licensed by the AMF for activities relating to investment in real estate assets) and their assets entrusted to a French depositary.

As the valuation of real estate assets held by an OPCI is a fundamental element of its viability, another feature of OPCIs is that the real estate assets held by the OPCI must be valued by two property appraisers, who must act jointly and draft a written report on such36 (the requirement is to have only one property appraiser for professional OPCI).

iv Hedge funds
Categories of investment structure

Since July 2013, the date of implementation of the AIFMD into French law, French hedge funds that qualify as AIFs are divided under French regulations into two categories: non-professional investment funds (funds of alternative funds)37 and professional funds, subdivided into professional funds with general purpose38 and specialised professional funds.39

Licensing requirements

Funds of alternative funds and professional funds with general purpose must be licensed by the AMF, whereas specialised professional funds are not subject to licensing requirements, but need only be notified to the AMF within one month of the date of their constitution.40

Categories of investors to whom funds may be marketed

Units of funds of alternative funds may be subscribed to by any type of investor investing a non-minimum amount of subscription.

Conversely, investment in professional funds with general purpose and specialised investment funds is open to any investor subscribing to the units or shares of the funds for above €100,000 or to professional investors (within the meaning of MiFID) or, with respect only to specialised investment funds, to individuals and companies subscribing to the units or shares of the funds for above €30,000 and meeting certain criteria (concerning in particular their previous experience in the private equity sector).41

Investment policy

As far as their investment policy is concerned, the main feature of French hedge funds is that they benefit from relaxed investment rules compared with those applicable to French UCITS (relaxed rules for using leverage and derivatives, and the right to invest up to 35 per cent of their assets in a single security or 50 per cent of their assets in a single UCITS). Specifically, funds of alternative funds may invest up to 100 per cent of their assets in foreign funds (meeting certain criteria) or in other types of French AIFs.

It should also be noted that the investment policy of the specialised professional fund is freely determined in its articles of association or in its regulations, and this type of investment fund may invest in any type of goods (not only in financial instruments and cash) meeting specific conditions (in particular, evidence of ownership right and the ability to value the goods accurately and regularly).42

Liquidity mechanisms

To allow SGPs to manage the liquidity of French hedge funds, French regulations authorise the implementation of the following specific mechanisms in relation to this type of fund:

  • a gating mechanisms, whereby the French hedge funds may provide in their articles of association or regulations that the redemption of their units or shares may be limited, at each date of establishment of their net asset value, to a fraction of the units or shares issued by the fund, subject to certain conditions;43
  • b side-pocket mechanisms, allowing the SGP of the hedge fund, in the event that the fund contains illiquid assets, to split the original funds into two new funds, one of which (contractual side-pocket fund) will receive the illiquid to be managed in a run-off mode;44 and
  • c mandatory notices for subscription and redemption orders (15 days where the net asset value is established on a daily basis and 60 days where the net asset value is not established daily).45

The implementation of the above-mentioned mechanisms is not subject to specific conditions regarding specialised professional funds, whose articles of association or regulations may freely determine the terms of subscription and redemption requests. It is possible to specify a lock-up period, the duration of which may freely be determined.46

Other features

Like other investment funds, French hedge funds must be managed by an SGP (specifically licensed by the AMF for activities relating to alternative investment strategies) and their assets entrusted to a French depositary.

The use of prime brokerage by the SGPs managing French hedge funds is regulated. Specifically, the prime broker and the SGP must prepare and sign a conformity letter to be submitted to the AMF, summarising the terms and conditions under which the prime broker carries out its activities.

In addition, regarding French hedge funds constituted as specialised investment funds and professional funds with general purpose, it is possible for the French depositary to enter into an agreement with the hedge fund whereby it limits its obligation of return of the financial instruments under custody in the event of delegation of this function to a third party.

v Private equity
Categories of investment structure

Since the implementation of the AIFMD, French venture capital funds belong to the category of AIFs and are subdivided in two categories of investment vehicles: non-professional AIFs (private equity funds, including joint venture capital mutual funds, innovation mutual funds and local investment funds) and professional AIFs, subdivided into professional venture capital funds47 and specialised professional funds.48

To improve French competitiveness, the Macron Law on growth, activities and equality of chances (Law No.1 2015-990 of 6 August 2015) introduced a new type of private equity for professional investors, a free limited partnership called an SLP, inspired by its English equivalent, the limited partnership.

Licensing requirements

Private equity funds must be licensed by the AMF, whereas professional venture capital funds are not subject to any licensing requirements but need only be notified to the AMF within one month of their constitution.

Authorised investors to whom funds may be marketed

Following the implementation of the AIFMD, the investment thresholds have been simplified as follows:

  • a units of funds of private equity may be subscribed by any type of investor (individuals or legal entities) subject to limitations in the fund’s prospectus or regulations, such as a minimum amount of subscription; and
  • b units of professional venture capital funds may be subscribed, by professional clients or by the SGP and its managers, by any type of investor without additional conditions if such person invests at least €100,000. In addition, individuals and companies meeting certain criteria (concerning in particular their previous experience in the private equity sector)49 may invest in professional venture capital funds, if such persons invest at least €30,000.
Investment policy and liquidity mechanisms

The main feature of these funds is that they have the obligation to invest the main part of their assets in securities issued by unlisted companies and then, although formally open, to behave like closed funds whose units are intended to be held by investors until maturity. From a practical point of view, these funds are constituted for 10 years or more, and unitholders will not be authorised to redeem their units during such period (lock-up period).

Other features

As with other collective investment schemes, French venture capital funds must be managed by an SGP (specifically licensed by the AMF for activities relating to private equity) and their assets entrusted to a French depositary.

Regarding remuneration arrangements, a specific feature of venture capital funds is that the individuals involved in the management may carry over interests represented by the units or shares of venture capital funds to be taxed under the regime applicable to financial capital gains. To benefit from this regime, the beneficiaries of the carried-over interests must meet specific conditions laid down by the French tax administration.

vi Other sectors

There are several categories of AIFs, certain of them not qualifying as investment funds (such as non-trading property investment companies or non-trading real estate companies).

Since 27 July 2013, the date of the AIFMD’s transposition, French securitisation vehicles that qualify as AIFs exist only as professional investment funds50 and are necessarily subject to licensing rules; they must be managed by an SGP licensed by the AMF for activities relating to investment in receivables and their assets entrusted to a French depositary.

French regulations were recently modified to provide the possibility for certain investment funds to extend direct loans in particular by adopting the ELTIF51 status. The first French ELTIF funds were authorised by the AMF in April 2016.

VII TAX LAW

Each type of investment vehicle is governed by specific (and sometimes complex) tax rules; the following therefore only constitutes a very brief and high-level summary.

Funds that do not have a legal personality (including all types of FCP, local investment funds and real estate investment funds) are not subject to tax – the income they earn is taxed at the level of their investors. The latter are generally taxed as if they had earned the income directly (i.e., the income retains its qualification – dividends, interest, capital gains, etc. – and its source – French or non-French – for tax purposes), but as and when the income is actually distributed by the funds. Proceeds allocated to non-resident investors are subject to withholding taxes in France at rates depending on the nature of the underlying income, the source of such income and the location of the investors, subject to any applicable tax treaty.

Funds that do have a legal personality (such as SICAVs, SPPICAVs,52 venture capital funds and SICAFs) generally fall within the scope of French corporate income tax but are exempt from such tax (in respect of all or certain items of income), so income earned by these funds is therefore also taxed as and when distributed to their investors. Certain funds (such as SPPICAVs) are obliged to make regular distributions, failing which they could lose their tax exemption. Income allocated to investors sometimes keeps its qualification and source, and otherwise is treated as distributed income (in principle subject to a 30 per cent withholding tax).

Capital gains earned by resident investors are in most cases taxable in France (as personal or corporate income tax, either upon disposal or every year on a mark-to-market basis for corporations), whereas non-resident shareholders are generally exempt when disposing of their shares in the funds.

Specific regimes furthermore exist for certain types of funds, providing for an exemption at investor level subject to certain conditions being met. As an example, French-resident individual investors investing in certain types of FCPs can benefit from a full personal income tax exemption if they invest for at least five years and do not receive any income from the funds during this period.

VIII OUTLOOK

The implementation into French law of the AIFMD in July 2013 resulted in few substantial modifications of the French asset management regulations, as the French regulations were already for the most part AIFMD-compliant (such as the obligation to appoint a depositary for any investment fund).

Its implementation is, however, considered by the asset management industry and by the AMF as an opportunity to favour the development of the French asset management industry and of French funds, which, in the current context, will continue to contribute more and more to the financing of the economy as a whole.

Footnotes

1 Arnaud Pince is a counsel at De Pardieu Brocas Maffei.

2 Figures from the annual report of the French Financial Markets Authority (AMF), June 2016.

3 The French Asset Management Association, Annual Report for 2014, June 2015.

4 France: Financial System Stability Assessment, International Monetary Fund, December 2012.

5 See footnote 3.

6 Article 314-2 of the General Regulations of the AMF.

7 Article L621-7 V of the MFC.

8 Article L621-6 of the MFC.

9 Article L621-9 et seq. of the MFC.

10 Article L621-9 and L621-15 of the MFC.

11 Article L532-9 of the MFC.

12 The limits of the licence will depend on the type of investment vehicles to be managed (UCITS funds, AIFs, discretionary mandates, etc.) and on the type of assets to be used by the SGP within the scope of its investment activities (investments in real estate assets, receivables, private equity, etc).

13 Article L532-9 of the MFC.

14 Article L561-2 of the MFC.

15 Ordinance No. 2016-312 of 17 March 2016.

16 Articles L 214-10-5 and L 214-24-8 of the MFC.

17 Article L 214-10-1 and L 214-24-7 of the MFC.

18 Article L 214-11-2 of the MFC.

19 The AMF, Position on the marketing regime of OPCVMs and AIFs in France (DOC 2014-04), as updated on 4 July 2016.

20 See footnote 17.

21 Article 411-129 III of the General Regulations of the AMF.

22 Article L533-13-1 of the MFC.

23 Article L531-2 2° k) of the MFC.

24 AMF Instruction 2014-01 of 30 June 2014, as updated on 25 June 2015.

25 Article 421-27 of the General Regulations of the AMF and AMF Instruction 2014-01 of 30 June 2014, as updated on 25 June 2015.

26 Bank of France net subscriptions in investment funds – France, September 2015.

27 Bank of France net subscriptions in investment funds – France, 30 May 2016.

28 Article R332-2 of the French Insurance Code.

29 In particular, by Ordinance No. 2013-676 of 25 July 2013.

30 Formerly the OPCI RFA EL (OPCI with relaxed investment rules and leverage effect).

31 Another investment vehicle is available on the French market for investing in real estate: the real estate investment company (SCPI), which is open to retail investors.

32 Article L423-14 of the MFC.

33 Article R214-36 of the MFC.

34 Article R214-194 et seq. of the MFC.

35 Article L214-37 of the MFC.

36 Article L214-55 of the MFC.

37 Formerly the OPCVMs of alternative funds.

38 Formerly the OPCVM ARIA EL (OPCVM with relaxed investment rules), which were subdivided in two categories (OPCVM ARIA EL and OPCVM ARIA SEL, the latter being authorised to use leverage).

39 Formerly the contractual OPCVM.

40 Article L214-153 of the MFC.

41 Article 423-2 and 423-27 of the General Regulations of the AMF.

42 Article L214-154 of the MFC.

43 Article L214-141 of the MFC.

44 Article L214-24-41 of the MFC.

45 Article 422-251 of the General Regulations of the AMF.

46 Article L214-157 of the MFC.

47 Replacing the category of joint venture capital mutual funds with relaxed investment rules.

48 Replacing the category of contractual joint venture capital mutual funds and contractual UCITS.

49 Article 423-49 of the General Regulations of the AMF.

50 Article L214-167 of the MFC.

51 European long-term investment funds regulated under regulation (EU) 2015/760 of the European Parliament and of the Council of 29 April 2015.

52 Investment trusts or companies investing predominantly in real estate.