July 2021 Regulatory Updates

July 29th 2021

The AMF and the ACPR sign two cooperation agreements with the SEC regarding the regime applicable to Security Based Swap Dealers (SBSD) in the U.S

Cooperation Derivatives or structured products Europe & international Markets Post-trading infrastructures The AMF and the ACPR sign two cooperation agreements with the SEC regarding the regime applicable to Security Based Swap Dealers (SBSD) in the U.S

Why this matters

This regulatory update is relevant for broker-dealers and banks that engage in security-based swap dealing activities in the U.S. It covers cooperation agreements between European and U.S.

Compliance Deadline: 6 October 2021

Sectors:

Capital Markets & Trading

Topics:

Authorisation & Licensing Reporting & Disclosure

Broker DealerBank

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🇫🇷 AMF Warning

July 29th 2021

AMF is warning retail investors on the importance of consulting the white list of digital asset service providers (DASPs)

Crypto-assets Savings protection AMF is warning retail investors on the importance of consulting the white list of digital asset service providers (DASPs)

Why this matters

This regulatory update from the AMF (Autorité des Marchés Financiers) in France is warning retail investors about the importance of consulting the white list of approved digital asset service providers (DASPs). This relates to consumer protection and the licensing/authorization of crypto firms operating in the market.

Sectors:

Crypto & Digital Assets

Topics:

Consumer Protection / Conduct Authorisation & Licensing

Crypto ExchangeFintech

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🇫🇷 AMF Guidance

July 29th 2021

The AMF complies with the ESMA guidelines on updating stress test scenarios in accordance with Article 28 of the Money Market Fund Regulation

Asset management MMF The AMF complies with the ESMA guidelines on updating stress test scenarios in accordance with Article 28 of the Money Market Fund Regulation

Why this matters

This regulatory update from the AMF relates to compliance with ESMA guidelines on stress test scenarios for money market funds, which is relevant for investment management firms that operate such funds. It touches on prudential and reporting requirements under the Money Market Fund Regulation.

Sectors:

Investment Management

Topics:

Prudential / Capital Requirements Reporting & Disclosure

Asset Manager

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🇫🇷 AMF Report

July 22nd 2021

The AMF publishes a study about potential explanatory variables for the record outflows that French MMFs faced in March 2020

MMF The AMF publishes a study about potential explanatory variables for the record outflows that French MMFs faced in March 2020

Why this matters

This regulatory update from the AMF (French financial regulator) focuses on potential explanatory variables for the record outflows that French money market funds (MMFs) faced in March 2020.

Sectors:

Investment Management Banking & Credit Capital Markets & Trading

Topics:

Prudential / Capital Requirements Reporting & Disclosure Consumer Protection / Conduct

Asset ManagerBankBroker Dealer

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🇮🇪 CBI Consultation Significant

July 21st 2021

Central Bank proposes to end the loyalty penalty for private car and home insurance customers

Review finds that differential pricing practices can result in unfair outcomes for some consumers Proposal to ban the practice of ‘price walking’ to end the loyalty penalty for consumers who do not switch insurance provider regularly Proposals will ensure that new business discounts are still available to allow…

AI Analysis

The Central Bank of Ireland (CBI) proposes banning "price walking" in private car and home insurance to eliminate the loyalty penalty, where long-term customers pay significantly higher premiums (14% more for car, 32% more for home after 9 years) than new customers with similar risk profiles. This stems from a 2021 review finding differential pricing unfair to loyal or less mobile consumers, with regulations finalized and effective from 1 July 2022, confirmed effective in subsequent reviews. It matters as it enforces fair treatment under CBI's consumer protection mandate, requiring insurers to overhaul pricing models while preserving new customer discounts to maintain competition.

Key dates

22 October 2021: - Consultation period closes for proposals in the final report
Early 2022: - CBI intends to finalize measures post-consultation
15 March 2022: - Publication of final Insurance Requirements Regulations 2022
1 July 2022: - Regulations apply to insurance undertakings and intermediaries; ban on price walking effective
2023/2024: - CBI review confirms regulations working, no loyalty penalty observed, no further measures needed at that time

Suggested considerations

Pricing model adjustments: Revise systems to ensure renewal premiums ≤ year-one premiums for equivalent risks; test against historical data (e.g., 11 million policy records analyzed).
Disclosure updates: Amend new customer communications to explicitly state "new business discount" inclusion.
Governance and reviews: Implement annual pricing policy reviews with documented evidence of customer impact assessment and fair treatment compliance; integrate into board/CPC oversight.
Renewal processes: Obtain explicit consumer consent for auto-renewals; provide reminders and clear switching info pre-renewal.
Monitoring and reporting: Conduct internal audits; respond to CBI engagements; retain records for supervision.

What changed

- Ban on price walking: Insurers cannot charge second or subsequent renewal customers a higher premium than an equivalent year-one renewal customer with similar risk and service cost.
Disclosure of new business discounts: Firms must clearly disclose to new customers that lower prices include a new business discount.
Annual pricing policy reviews: Providers must review pricing policies yearly to ensure focus on customer impact, adherence to rules, and fair treatment.
Automatic renewals requirements: Introduce consumer consent for automatic renewals and enhanced information/reminders to support informed decisions and switching. These were implemented via the...

Compliance impact

Urgency: low (as of 2026). Rules have been effective since July 2022, with CBI's 2023/2024 review confirming no loyalty penalties, no unintended consequences, and market stability—Ireland was first EU state with such a ban. Firms compliant since 2022 face ongoing low-risk monitoring; non-compliance risks enforcement under Section 48(1), but positive outcomes reduce immediate pressure. Matters for legacy audits or CPC reviews.

References

AI-generated analysis. May contain errors or omissions — verify with the original CBI source before acting. Full disclaimer.

Compliance Deadline: 1 July 2022

Sectors:

Insurance & Pensions

Topics:

Consumer Protection / Conduct

Insurance

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🇫🇷 AMF Enforcement

July 15th 2021

The AMF has postponed the effective date of the authorisation withdrawal of the asset management company Nestadio Capital

Asset management The AMF has postponed the effective date of the authorisation withdrawal of the asset management company Nestadio Capital

AI Analysis

The Autorité des Marchés Financiers (AMF) postponed the effective date of the authorization withdrawal for Nestadio Capital, a portfolio asset management company, to allow time for fund transfers or liquidation following repeated non-compliance with authorization terms. This matters for compliance professionals as it illustrates AMF's enforcement approach to regulatory breaches in asset management, emphasizing orderly wind-downs to protect investors while signaling risks of judicial intervention if issues persist. The case culminated in judicial liquidation by 2022, highlighting long-term consequences for non-compliant firms.

Key dates

17 December 2019: - AMF Board decides authorization withdrawal
9 June 2020: & **8 December 2020** - Postponements to **30 June 2021**
1 July 2020: - Original latest effective date for withdrawal (or fund transfer/liquidation)
8 June 2021: - Postponement to **31 December 2021** for fund sales/liquidation
4 October 2021: - Conseil d'Etat rejects Nestadio's appeal

Suggested considerations

For Nestadio Capital (historical): Cease non-essential activities under administrator control; complete fund transfers/liquidation; comply with court-appointed liquidator.
For investors: Monitor liquidator updates at https://www.pmrpartners.com/fonds-nestadio/ and AMF communications; pursue claims via judicial process if needed.
For industry peers: No immediate actions, but review internal compliance on authorization terms (e.g., capital adequacy); prepare contingency plans for potential AMF interventions like administrator appointments.
AMF referrals to courts underscore need for firms to self-report issues early to avoid escalation.

What changed

- Initial authorization withdrawal decided on 17 December 2019 due to Nestadio Capital's failure to comply with authorization terms, including capital requirements, with original effective date at...
Multiple postponements: 9 June 2020 and 8 December 2020 extended to 30 June 2021; 8 June 2021 further extended to 31 December 2021 to facilitate fund sales and liquidation.
7 December 2021 postponement tied withdrawal effect to full fund liquidation or judicial liquidation closure, triggered by commercial court judgment on 17 December 2021 opening judicial liquidation...
AMF appointed an administrator (Nathalie Baudry) initially, later a provisional administrator, and requested court appointment of PMR Partners as fund liquidator on 17 February 2022.
Nestadio Capital's appeal to Conseil d'Etat rejected on 4 October 2021. No new broad regulatory requirements; this is a firm-specific enforcement action under Article L.

Compliance impact

Urgency: low - This is a resolved 2019-2022 enforcement case with no ongoing deadlines or new rules as of 2026; Nestadio is in judicial liquidation. It matters as a precedent for AMF's phased withdrawal process, protecting investors via extensions and liquidators, but warns asset managers of severe outcomes for breaches like capital shortfalls—review governance and capital monitoring to mitigate similar risks.

References

AI-generated analysis. May contain errors or omissions — verify with the original AMF source before acting. Full disclaimer.

Effective Date: 31 December 2021

Sectors:

Investment Management

Topics:

Authorisation & Licensing

Asset Manager

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🇫🇷 AMF Speech

July 12th 2021

The AMF emphasises the importance of independence in financial analysis

Financial analysis The AMF emphasises the importance of independence in financial analysis

Why this matters

This regulatory update from the AMF emphasizes the importance of independence in financial analysis, which is relevant for asset managers, broker-dealers, and banks involved in investment management and capital markets activities.

Sectors:

Banking & Credit Investment Management Capital Markets & Trading

Topics:

Consumer Protection / Conduct Reporting & Disclosure Authorisation & Licensing

Asset ManagerBroker DealerBank

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🇫🇷 AMF Warning

July 7th 2021

The AMF urges retail investors to exercise extreme caution towards proposals to invest in rooms in care homes

Warning Savings protection Financial Scams Warning The AMF urges retail investors to exercise extreme caution towards proposals to invest in rooms in care homes

Why this matters

This regulatory update from the AMF warns retail investors to exercise caution towards proposals to invest in rooms in care homes, indicating potential risks or scams in this investment area. This is relevant for investment managers, wealth managers, and the broader investing public.

Sectors:

Investment Management Wealth & Private Banking Consumer Credit

Topics:

Consumer Protection / Conduct Authorisation & Licensing

Asset ManagerWealth Manager

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🇫🇷 AMF Report

July 2nd 2021

The AMF publishes a study on the development of the SPAC market and its challenges

Financial products Bids Shares Financial disclosures & corporate financing Markets The AMF publishes a study on the development of the SPAC market and its challenges

Why this matters

This regulatory update from the AMF focuses on the development and challenges of the SPAC market, which impacts capital markets, consumer credit, and mortgage/lending firms. Key topics include market abuse, reporting/disclosure, and authorization/licensing requirements for SPAC-related activities.

Sectors:

Capital Markets & Trading Consumer Credit Mortgage & Lending

Topics:

Market Abuse / Surveillance Reporting & Disclosure Authorisation & Licensing

Asset ManagerBroker DealerBank

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