March 2022 Regulatory Updates

Key dates

As soon as possible

- Disclose inside information publicly, or immediately if confidentiality breached during delay

Immediately after publication

- Notify AMF (differepublication@amf-france.org) of any delayed inside information post-publication

Within 3 trading days

- Managers/directors report securities transactions to issuer and AMF

Within 10 business days

- Custodians respond to Euroclear France/AMF requests for shareholder identity disclosures

Suggested considerations

• Assess information promptly: Determine inside information status per MAR Article 7 (precise, price-significant) and disclose via approved channels (e.g., electronic dissemination per Article 221-3 AMF GR).
• Implement controls: Establish information barriers, restrict access, and notify affected persons of rules/penalties (AMF GR Articles 223-27, 223-30).
• Maintain insider lists: Create/update lists for each inside information item, ensure insiders acknowledge MAR duties (no use/dissemination), and monitor changes.
• Train personnel: Educate executives/shareholders on disclosure prohibitions and PDMR reporting.
• Archive disclosures: Post regulated info on company website immediately and ensure AMF/DILA transmission.

What changed

• This enforcement action does not introduce new regulations but reinforces existing MAR requirements transposed into AMF General Regulation (e.g., Article 315-1), including:
• Immediate public disclosure: Issuers must disclose inside information "as soon as possible" under MAR Article 17, unless three conditions for delay are met (legitimate interest, confidentiality...
• Prohibition on unlawful disclosure/use: Persons with inside information cannot disclose it except per MAR Article 10 (after informing compliance officer); investment firms must maintain "information...
• Insider list obligations: Companies must create, update, and notify insiders of their duties (e.g., no trading or dissemination), with accurate details; failure leads to penalties as seen in related...

Suggested considerations

• Pricing Adjustments: Update systems/models to ensure renewal prices ≤ EQFRP; identify close-matched products for comparisons.
• Conduct Reviews: Perform comprehensive annual review of pricing policies/processes, documenting compliance, controls, and rectifications; avoid "tick-box" approaches.
• Enhance Communications: Revise renewal notices/documents to include mandated info (e.g., price, cancellation rights, switching options); handle pre-1 July notices pragmatically but comply in spirit.
• Record Maintenance: Retain written records of reviews, pricing decisions, and compliance evidence for audit readiness.
• Internal Governance: Assess/align with CPC General Principle 2.1; monitor for material changes requiring documented consistency checks.

What changed

• - Ban on Price Walking: Insurance undertakings and intermediaries cannot charge renewing customers (defined as "relevant renewing customers") a premium higher than that charged to an equivalent...
• Annual Pricing Reviews: Firms must conduct an annual review of motor and home insurance pricing policies and processes within two months of each year-end to ensure compliance, including controls to...
• Automatic Renewal Disclosures: Firms must provide specific information to consumers before automatic renewals, including renewal price, right to cancel, and options to switch providers, to promote...
• Record-Keeping: Written records must be retained for annual reviews, material pricing decisions, and compliance assessments.
• Scope Exclusions: Applies prospectively from 1 July 2022; no retrospective application or transitional period.

Suggested considerations

• Conduct conflict of interest audits: Review all investment recommendations, publications, and marketing materials for undisclosed conflicts; implement mandatory disclosure templates.
• Enhance surveillance for market abuse: Deploy monitoring tools for price manipulation indicators, such as unusual trading post-recommendation, and train staff on MAR prohibitions.
• Update compliance policies: For media/financial firms, mandate pre-publication reviews of recommendations; directors must personally attest to compliance.
• Training programs: Roll out firm-wide training on professional obligations, including clear information provision and acting in client best interests, especially for journalists/influencers.
• Inducement reviews: If paying/receiving fees tied to recommendations, demonstrate they improve client service quality via audits and reporting.

What changed

• This enforcement decision does not introduce new regulations but reaffirms and clarifies existing requirements under AMF rules and EU Market Abuse Regulation (MAR):
• Mandatory conflict of interest disclosure: Investment recommendations must explicitly mention any conflicts, such as financial stakes or relationships influencing the advice, to ensure clear,...
• Prohibition on price manipulation: Practices artificially influencing security prices, including through coordinated recommendations, are strictly banned, with liability extending to directors. These...