THE FRENCH STOCK EXCHANGE
& RELATED FINANCIALMARKETS
How they operate
and how they are regulated

CREATION OF A PRUDENTIAL SUPERVISION AUTHORITY

Christine Lagarde, Minister of the Economy, announced at the end of January 2009 a new supervisory body to control the banking and insurance sectors, named "Autorité de Contrôle Prudentiel (ACP)", just created by ordonnance n° 2010-76 of 21.01.2010.
This new body is placed under the authority of the Banque de France. It results from the merging of the Commission Bancaire, the Autorité de Contrôle des Assurances et des Mutuelles (ACAM), the Comité des Entreprises d'Assurance (CEA) and the Comité des Etablissements de Crédit et des Entreprises d'Investissement (CECEI).
ACP is an independent administrative authority whose budget is established on the base of contributions from all the organisations submitted to its control (credit establishments, investment companies, market companies, clearing members, insurance companies, mutuals and providence institutions, as well as intermediaries in the banking and insurance sectors).
In addition to a plenary college presided by the Governor of the Banque de France, its structure includes two sub-colleges; one specialised in banking and the other in insurance and also a sanctions commission composed of five members.
The mission of the new Authority is to ensure the stability of the financial system and the protection of its clients, the insured, members and beneficiaries of the persons submitted to its supervision. The control of the marketing of financial products (credit, savings, insurance) will be one of the fundamental missions of ACP. Structured cooperation will be set up between the new Authority and the Autorité des Marchés Financiers (AMF).
To carry out its functions, ACP can organise the on site control of documents and can take administrative police measures or pronounce disciplinary sanctions. ACP will also represent France in international banking and insurance proceedings.
The first meeting of the ACP College will be in February (Minister of the Economy's press release of 20.01.2010). On this date, the Prudential Control Authority will take over the rights and obligations of the Autorité de Contrôle des Assurances et des Mutuelles (ACAM), the Comité des Entreprises d'Assurance (CEA), the Comité des Etablissements de Crédit et des Entreprises d'Investissement (CECEI) and the Commission Bancaire.

SIGNATURE OF AN AGREEMENT TO EXCHANGE INFORMATION BETWEEN THE AUTORITE DES MARCHES FINANCIERS AND THE HIGH COUNCIL OF AUDITORS

Signed on the 11th January 2010, this agreement concerns the quality control of the missions of auditors nominated by persons or organisations coming under the competence of the AMF (quoted companies, collective investment undertakings). It specifies the practical means for the AMF to carry out periodical controls to which auditors will be submitted and it fixes the conditions for the exchange of information between the two authorities in their respective roles.

SETTING UP OF A GUIDANCE COUNCIL FOR THE FIGHT AGAINST CAPITAL LAUNDERING AND THE FINANCING OF TERRORISM

Décret n° 2010-69 of 18.01.2010 institutes a Guidance Council for the fight against capital laundering and the financing of terrorism. The aim of this Council is to:

- ensure a better coordination of the State services and the controlling authorities concerned by this project;
- favour the dialogue with the different professions subject to the obligations to fight money laundering and the financing of terrorism in order to improve their participation;
- follow the elaboration and regular updating of a summary document on the threat of capital laundering and the financing of terrorism;
- propose improvements to the national measures to fight capital laundering and the financing of terrorism.

The Council is presided by a qualified personality nominated jointly, for a renewable period of three years, by the Ministers of the Economy and the Budget. It comprises twenty-three members belonging to different State services and control authorities. Its secretarial work will be carried out by the general management of the Treasury and Economic Policy.