September 2023 Regulatory Updates

Key dates

31 July 2025

- Cut-off date for assessing Participating Jurisdictions' regulatory frameworks in IOSCO's Thematic Review

October 16, 2025

- Publication date of FSB and IOSCO reports assessing crypto-asset and stablecoin implementation, including DeFi elements

2 February 2026 Deadline

- IOSCO consultation comment deadline on related reports (e.g., FMIs’ management of general business risks)

6 February 2026 Deadline

- CPMI-IOSCO consultation comment deadline on FMIs’ general business risks guidance, relevant to DeFi infrastructure

Suggested considerations

• Review and comment: Submit feedback on IOSCO consultations by early February 2026 to influence final guidance on DeFi risks.
• Gap analysis: Assess current operations against IOSCO's 10 Assessed Recommendations (e.g., market integrity, investor protection, cross-border cooperation) and FSB frameworks, noting reforms underway.
• Enhance compliance: Implement AML mechanisms for DeFi (e.g., on-chain identity attestations), improve cybersecurity, business continuity, and enforcement powers for CASPs.
• Monitor cross-border: Leverage IOSCO MMoU for cooperation and prepare for global CASP supervision.
• Pilot participation: Explore EU DLT Pilot Regime or similar sandboxes for compliant DeFi activities.

What changed

No immediate binding regulatory changes are introduced, as this is a consultation report tied to IOSCO's 2023 DeFi Recommendations and a 2025 Thematic Review assessing implementation progress. Key focuses include enhanced regulatory cooperation (Recommendation 11), addressing gaps in enforcement for Crypto Asset Service Providers (CASPs), and applying CDA Policy Recommendations to DeFi for risks like financial stability, investor protection, and market integrity. Progress is noted in legal frameworks, but challenges persist in cross-border cooperation and enforcement beyond CASPs.

Key dates

September 18

19, 2023; - Rallye appeals the AMF decision

2016

- Prior AMF Deputy Secretary General warning to Rallye on financial communication quality, specifically liquidity risk presentation

March 8, 2018

May 15, 2019; - Period of infringing communications (11 occasions, 14 media)

September 2023

(inferred from context) - AMF Enforcement Committee decision imposing fines

Suggested considerations

• Review historical/current financial communications for liquidity/debt portrayals; ensure they explicitly address dependencies (e.g., on subsidiary performance) and avoid unqualified positives like "solid liquidity" amid volatility.
• Enhance governance: Implement pre-approval processes for CEO/issuer statements on material risks; document awareness of true risk profiles.
• Training: Senior managers regime-style programs on MAR personal liability for misleading info, emphasizing repetition risks.
• Audit trails: Maintain evidence of internal deliberations on disclosures to defend against "knew or should have known" findings.
• Monitor appeals: Track Rallye's challenge, as outcomes may clarify MAR scope (e.g., https://www.marketscreener.com/insider/FRANCK-HATTAB-A1NUTV/ for updates).

What changed

This is an enforcement decision, not a regulatory change; it reinforces existing MAR requirements prohibiting dissemination of false or misleading information likely to artificially affect financial instrument prices. Key interpretations include: (i) describing liquidity as "solid" or "very solid" despite dependency on volatile subsidiary (Casino) shares and hidden risks (e.g., €400-600M liquidity shortfall, concealed loans) constitutes manipulation; (ii) issuers are strictly responsible for communications by representatives like CEOs; (iii) repetition across multiple media (e.g.,...

Key dates

August 2019

December 2023; - Period of breaches investigated, covering investment services, processes, conflicts, and AML/CFT failures

31 December 2025

- AMF Enforcement Committee decision date imposing fines on M Capital Partners and directors

08 January 2026

- Public press release date

Suggested considerations

• Immediate gap analysis: Review investment procedures for precision, traceability, and operationality; verify authorization of lending entities and service scopes (e.g., no unauthorized placement services).
• Enhance AML/CFT: Implement operational risk mapping, systematic due diligence on fund assets/liabilities, and evidence of effectiveness.
• Conflicts framework: Formalize identification/prevention processes, especially in multi-role firms (asset manager + tied agent).
• Senior manager attestation: Document personal oversight; conduct training on attribution of breaches.
• Marketing/retrocessions: Ensure traceability and proof of client benefit (cross-reference with similar findings).

What changed

• This is an enforcement action, not a regulatory change, but it reinforces existing AMF requirements under French Monetary and Financial Code for asset managers:
• Operational procedures: Investment allocation processes must be precise, traceable, and compliant; failure to verify or document renders systems non-operational.
• Scope of services: Asset managers (and tied agents) cannot provide unauthorized services like placing financial instruments without firm commitment, circumventing licensed activities.
• Conflicts of interest: Robust identification, prevention, and management systems are mandatory.
• AML/CFT: Due diligence on fund assets/liabilities must be systematic and operational, with effective risk mapping and procedures.

Key dates

June 2, 2023

- AMF Sanctions Commission hearing where €500,000 sanction was initially sought (reduced in final decision)

September 5, 2023

- AMF Sanctions Commission decision issued, imposing fines and warnings on ANACOFI-CIF (€250,000) and M. Patrick Galtier (€20,000)

Post

September 5, 2023; - Decision subject to potential recourse (appeal period not specified in public summaries, typically 1 month under AMF procedures)

Suggested considerations

• Review and strengthen internal procedures for CIF membership vetting, ensuring dossier quality checks align with approved protocols.
• Implement robust systems for member controls, sanctions processes, and secure archiving of all dossiers per CMF L.541-8 requirements.
• Update conflicts of interest policies and registers to fully comply with internal rules and CMF obligations, documenting all identifications.
• Conduct gap analyses on governance, documentation, and AML/KYC for CIF activities, training staff on operationalizing procedures.
• For CIF members: Verify personal compliance with association standards to mitigate contagion risks from association sanctions.

What changed

• This is an enforcement action, not a new regulation, but it reinforces existing obligations under French Monetary and Financial Code (CMF) for approved professional associations like ANACOFI-CIF.
• Failure to verify quality of CIF membership application dossiers and non-compliance with internal adhesion procedures.
• Non-respect of procedures for member controls, sanctions, and proper archiving of control dossiers.
• Violation of internal rules on conflicts of interest management. No new requirements were introduced; the case reiterates enforcement of CMF Articles L.541-8 and L.541-8-1 on documentation,...