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The changes consist in developing a principles-based regulatory approach under which the responsibilities of asset management companies are more clearly defined, and making technical adjustments to the rules to adapt them to developments in the FoHF industry.
The changes in the regulatory framework involve, inter alia, four general principles that replace the previous thirteen eligibility criteria for foreign hedge funds. Asset management companies are reminded of the due diligence procedures they must apply when investing in a financial instrument on behalf of funds they manage. Changes also include specific disclosure in the FoHF prospectus if investment strategies are not sufficiently diversified.
Articles 313-54 and 411-34 of the AMF General Regulation have been amended by an executive order dated
The changes follow on from the report of the working group on "Assessment of the French regulatory framework for funds of hedge funds and possible areas of improvement", put out for public consultation between 18 September and
The rule changes implement recommendations from the report that fall within the purview of the AMF. Those recommendations that would require implementation by law or decree are under consideration by the competent authorities.