Upcoming changes to the marketing of foreign funds in France
The French Autorité des Marches Financiers (“AMF”) recently introduced changes to several instructions and related appendices on the integration of non-financial features in the Asset Management industry. These changes impact any collective investment schemes, whether AIF or UCITS, that are distributed to retail investors in France.
What does it mean?
If you already distribute funds in France today:
- You will need to take the requirements of this recommendation into account and amend your KI(I)Ds, Factsheets and Prospectuses before Nov. 30, 2020
- Next time you submit your KI(I)Ds, Factsheets and/or Prospectus to AMF, you will also need to submit the completed form .
If you plan to register a fund in France in the short term:
- You will need to take the requirements of this recommendation into account and reflect these in your KI(I)Ds, Factsheets and Prospectuses before submitting the notification to AMF.
- You will also need to submit the completed form together with the notification file.
When a fund marketed in France considers non-financial features as a central element of its communication to investors, the notification letter to be submitted to AMF must be supplemented by annexe XX. According to the position recommendation 2020-03, non-financial features are considered a central element of the communication when they are presented:
- in the fund or sub-fund name; or
- in the KI(I)D or Factsheet; or
- in the offering documents, beyond a very brief and proportionate mention.
How does it work?
The AMF now requires a new form (Appendix XX) which needs to be completed and submitted as part of the notification process. The form is available here.
This form is applicable with immediate effect for new fund registrations in France. As far as maintenance of existing registrations are concerned, this form is to be submitted when there are changes in the aforementioned documents:
- In case of change in the KI(I)Ds and/or marketing documents, these documents as well as the form must be submitted at the latest by 30, 2020.
- If there is no modification in the KI(I)Ds and/or marketing documents, then the Prospectus alone is to be checked and adapted, and is to be submitted with the completed form at the latest by 10, 2021.