During his speech, AMF chairman Jean-Pierre Jouyet set out three priority areas of focus hinging on the following: corporate governance; marketing of investment products to retail investors; and financing the economy - market regulation and consistent public policy.
Corporate governance
The AMF believes that regulatory arrangements in this area to some extent lag behind European and international best practice. Areas of focus include, in particular, the need to review legislation on public offerings to ensure that minority shareholders are afforded the best possible protection. The AMF also believes that the process of drawing up corporate governance codes should be widened to include both investors and listed companies so that market-wide consensus can be achieved. Finally, there is a need to look at strengthening the powers available to shareholders at general meetings, and in particular shareholders’ right to be informed of the details of executive compensation, thus bringing France into line with European best practice.
Marketing of investment products to retail investors
A discussion process on the issue of investment advice and regulations governing the marketing of financial products should be initiated. Such a process could lead to an overhaul of operating, compensation and regulation requirements for financial advisers, whether they operate within independent firms or as part of a large network. The AMF will also pay particularly close attention to work currently in progress at a European level on the marketing of financial products to retail investors (PRIPs). Finally, in the area of compensation for financial losses, the AMF will be closely monitoring potential legislative changes, particularly if “French-style” collective action clauses are developed.
Financing the economy: market regulation and consistent public policy
Prudential and fiscal rules play a particular role in the allocation of financial flows. When designing such rules, consideration must therefore be given to their contribution to financing the economy. Any measures adopted, particularly as regards reforming the structure of banks, must be clear and specific to ensure that the economy, employment and companies are properly financed. The AMF will participate fully in the debate that will inevitably take place on this issue, and will ensure that due consideration is given to the need for banks to manage conflicts of interest responsibly.
Financing the economy also calls for a consistent, effective and targeted policy on investment of individual savings. As such, particular attention should be paid to the asset management industry, which plays a decisive role in allocating retail and institutional investments. More generally, discussions need to take place on tax arrangements pertaining to investments to encourage long-term investment – which is less natural in the eyes of investors – and highlight the contribution of such investment to financing the economy, by favouring capital injections, particularly in the SME sector.
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