REVIEW - Autorité des Marchés Financiers (AMF)

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What is the AMF?

The Autorité des Marchés Financiers (AMF), or Financial Markets Authority, is an independent administrative authority which regulates the French Financial market. The regulator protects and informs individuals about savings and regulates financial transactions. It also participates in the harmonization of Financial regulations at European and international levels.

Besides the financial markets, financial companies, and their underlying infrastructure, Financial Markets Authority also regulates financial companies that provide investment services.

The Financial Security Act created the AMF on Aug 1, 2003. The regulatory body formed through the combination of the Commission des opérations de bourse, COB, the Conseil des marchés financiers, CMF, and the Conseil de discipline de la gestion financière, CDGF.

The AMF has three stated goals. For instance, it aims to protect investments in financial products, make sure that investors get sufficient information about financial products, and secure orderly financial markets.

AMF Governance

AMF consists of a board, Sanctions Commission, five permanent advisory communities, and a Scientific Council.

The board is the decision-making body of the regulator and consists of 16 members, including the chairman of the regulatory body. In fact, it authorizes new regulations relating to its areas of expertise. These include financial markets and its players, financial operations, and financial products. The AMF board has supervisory and investigative powers. Finally, decisions on the board occur by the majority vote.

The Sanctions Commission consists of 12 people. It exercises its power of sanction concerning any person whose practices go against the regulations in force.

The Advisory Committees can be consulted on specific topics by the AMF and were created by French financial legislation.

The Scientific Council brings together financial specialists from the academic and professional world to carry out research work on specific topics.

Audits and Inspections

The Autorité des Marchés Financiers conducts audits and inspections of French financial institutions to enforce money laundering regulations and ensure compliance. It focuses on both internal AML procedures and infrastructure and individuals in charge of AML compliance.

Coordination with French Authorities

AMF puts many efforts into fighting money laundering. Moreover, it guarantees France’s national AML performance is held to the highest standard. The regulator works in collaboration with associated national bodies such as ACP, the Autorité de Contrôle Prudentiel.

What Powers Does AMF Have?

The regulator has the authority to set rules, carry out investigations, and issue fines and sanctions. Besides, the AMF can censure individuals within a financial institution. Among them are directors of the company, employees, and officers.

Moreover, the AMF is responsible for identifying all practices or behaviors that are contrary to its regulations. The main task of market surveillance is to detect any event or abnormal behavior that could be qualified as a breach or a stock market offense.

The AMF declares administrative sanctions (warning, reprimand, withdrawal of authorization, etc.) as opposed to criminal sanctions pronounced by the courts.

One of the AMF’s mission is to inform and protect investors. The regulatory provides several tools to support them in their investment process.

AMF approves asset management companies. Any authorization made by these bodies, present in a Member State of the European Union, must also receive validation from the AMF to carry out its activities in France.

The AMF Authorizes the Marketing of Atypical Ventures

Since May 2017, companies and intermediaries offering investments in startups, emerging companies, and business entrepreneurs, must request authorization from the AMF. However, if a company markets these atypical products without having received the registration number issued by the AMF, it will act illegally.

AMF’s International Presence

At the international level, theThe Autorité des Marchés Financiers is a member of the International Organization of Securities Commissions (IOSCO). Within this international organization, which brings together more than a 100 countries, the AMF works to represent the French position in terms of harmonizing the operating rules of the financial markets.

At the community level, the AMF is called on certain subjects relating to financial regulation to define the standards or norms that allows the regulatory translation of the principles and priorities developed at the end of the international work of IOSCO and other institutions.

The AMF participates in the working groups of the European Securities Authority, ESMA. It also has a permanent seat on the European Systemic Risk Board, ESRB.

Reprinted from financebrokerage, the copyright all reserved by the original author.