The AMF is conducting a consultation on the end of life of private equity funds intended for retail investors
Executive Summary
The AMF is conducting a consultation on regulatory reforms governing the end-of-life management of retail private equity funds (FCPRs, FCPIs, and FIPs), with the objective of improving compliance with liquidation deadlines and enhancing investor protection through better information disclosure and operational safeguards. This initiative addresses systemic issues where fund managers have historically failed to respect contractual lifespan commitments, creating liquidity risks and investor communication failures.
What Changed
The AMF has amended its General Regulation and policy framework to implement several substantive requirements: Liquidation Compliance & Warnings A new Article 422-120-14-1 requires management companies to include a warning in promotional materials if, over the ten years preceding fund authorization, the company failed to respect the lifespan of at least 50% of retail or professional private equity funds under its management. This warning applies only when two materiality thresholds are met: the company manages or has managed at least one other retail private equity fund, and has managed at least three retail or professional private equity funds that reached their end-of-life date. Extended Lock-Up Periods The AMF updated Position-Recommendation DOC-2012-11 to reflect the extension of max
What You Need To Do
- *For All Retail Private Equity Fund Managers
- *Audit historical compliance with fund lifespan commitments over the preceding ten years to determine if warning requirements under Article 422-120-14-1 apply
- *Implement bank details collection for all funds established after December 5, 2024, incorporating requirements into subscription forms per Instruction DOC-2011-22
- *Establish prior notification procedures for substantial changes to fund structure, investment strategy, or operations, with one-month advance notice to the AMF
- *Update Position-Recommendation DOC-2012-11 compliance to reflect the extended 15-year lock-up period for newly authorized funds
- *Review investor communication protocols to ensure unitholders receive timely notification of fund status changes and end-of-life procedures
Key Dates
Compliance Impact
Urgency: HIGH
Who is Affected
Summary
Asset management Savings protection Journalists The AMF is conducting a consultation on the end of life of private equity funds intended for retail investors