Front Matter Page
IMF Country Report No. 19/325
FRANCE
FINANCIAL SECTOR ASSESSMENT PROGRAM
TECHNICAL NOTE—SELECT TOPICS IN FINANCIAL SUPERVISION AND OVERSIGHT
October 2019
This Technical Note on Select Topics in Financial Supervision and Oversight on France was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on October 1, 2019.
Copies of this report are available to the public from
International Monetary Fund • Publication Services
PO Box 92780 • Washington, D.C. 20090
Telephone: (202) 623–7430 • Fax: (202) 623–7201
E-mail: publications@imf.org Web: http://www.imf.org
Price: $18.00 per printed copy
International Monetary Fund
Washington, D.C.
© 20xx International Monetary Fund
Front Matter Page
FRANCE
FINANCIAL SECTOR ASSESSMENT PROGRAM
TECHNICAL NOTE
SELECT TOPICS IN FINANCIAL SUPERVISION AND OVERSIGHT
October 1, 2019
Prepared By
Monetary and Capital Markets Department
This Technical Note was prepared in the context of an IMF Financial Sector Assessment Program (FSAP) in France in December 2018 and March 2019 that was led by Udaibir Das. Further information on the FSAP program can be found at http://www.imf.org/external/np/fsap/fssa.aspx
Contents
Glossary
PREFACE
LESS SIGNIFICANT INSTITUTIONS
A. Executive Summary
B. Introduction
C. Less Significant Institution Regulatory Framework
D. Less Significant Institution Supervision Framework
E. Less Significant Institution Supervisory Approach
F. Less Significant Institution Supervisory Priorities
REGULATED SAVINGS
A. Executive Summary
B. Scope and Approach
C. Regulated Savings
D. Centralization of Regulated Savings
E. Remuneration of Regulated Savings
F. The Caisse des Dépôts et Consignations
G. Institutional Oversight
H. Caisse des Dépôts et Consignations – A Group with Banking and Insurance Entities
I. Prudential Treatment of Regulatory Savings
J. Safety Net
K. Market Impact
L. Policy Conclusions
REGULATION AND SUPERVISION OF INVESTMENT SERVICES
A. Executive Summary
B. Introduction
C. Market Structure
D. Regulation
E. Authorization
F. Supervision
G. Enforcement
H. Failure of a Market Intermediary
I. Systemic Risk Monitoring
J. Conclusions and Recommendations
CRISIS MANAGEMENT, PREPAREDNESS, AND SAFETY NETS
A. Executive Summary
B. Main Recommendations
C. Introduction
D. The Resolution and Crisis Management Framework
E. Crisis Management Arrangements
F. Recovery and Resolution Planning
G. Developments in Resolution Planning and the Approach to Implementing MREL
H. Protection of Depositors, Retail Investors, and Policy Holders
I. Emergency Liquidity Assistance
BOXES
1. Financial Advisers
2. New Regime for Crypto-Assets
3. Impact on France of UK’s Withdrawal from the European Union
FIGURES
1. Regulated Savings 2017
2. Financing of Social Housing
3. Role of Caisse des Dépôts
TABLES
1. Less Significant Institution Sector
2. Recommendations for Regulated Savings
3. Regulated Savings Products
4. Recommendations on Regulation and Supervision of Investment Services
5. Allocation of Regulatory and Supervisory Tasks
6. AMF Inspections 2015–17
7. Importance of LSIs in the Banking System
8. Institutional Coverage for Resolution
Glossary
| ACPR |
French Prudential Supervision and Resolution Authority |
| AFG |
Association of Asset Management Companies |
| AIF |
Alternative investment fund |
| AIFMD |
Alternative Investment Fund Managers Directive |
| AMF |
French Financial Markets Authority |
| AM L/CFT |
Anti-Money Laundering/Combating the Financing of Terrorism |
| BdF |
Banque de France |
| BRRD |
EU Bank Recovery and Resolution Directive |
| BTS |
Binding Technical Standard |
| CCP |
Central Counterparty |
| CDC |
Caisse des Dépôts et Consignations |
| CEL |
Compte Epargne Logement |
| CET1 |
Common Equity Tier 1 |
| CEO |
Chief Executive Officer |
| CGLLS |
Caisse de garantie du logement locatif social |
| CIF |
Conseillers en investissements financiers |
| CMG |
Crisis Management Group |
| CPMI |
Committee on Payments and Market Infrastructures |
| CRR/CRD IV |
Capital Requirements Regulation/Capital Requirements Directive IV |
| DGSD |
Deposit Guarantee Scheme Directive |
| EBA |
European Banking Authority |
| EC |
European Commission |
| ECB |
European Central Bank |
| EIOPA |
European Insurance and Occupational Pensions Authority |
| ELA |
Emergency Liquidity Assistance |
| EMIR |
European Market Infrastructure Regulation |
| EP |
European Parliament |
| EPA |
Administrative Public Institution (Etablissement public à caractère administratif), |
| ESCF |
Eurosystem collateral framework |
| ESMA |
European Securities and Markets Authority |
| ESRB |
European Systemic Risk Board |
| EU |
European Union |
| FFA |
Federation of French Insurers |
| FGAO |
Fonds de Garantie des Assurances Obligatoires de dommages |
| FGAP |
Fonds de Garantie des Assurances de Personnes |
| FGDR |
Fonds de Garantie des Dépôts et de Résolution |
| FOLTF |
Failing or likely to fail |
| FRN |
National Resolution Fund |
| FSB |
Financial Stability Board |
| HCSF |
High Council of Financial Stability |
| ICO |
Initial Coin Offering |
| IOSCO |
International Organization of Securities Commissions |
| JSS |
Joint Supervisory Standards |
| KA |
Key Attributes |
| LCR |
Liquidity Coverage Ratio |
| LDDS |
Livret de Développement Durable et Solidaire |
| LEE |
Livret d’Epargne Entreprise |
| LEP |
Livret d’Epargne Populaire |
| LSI |
Less significant institution |
| LTV |
Loan-to-Value Ratio |
| MCR |
Minimum Capital Requirement |
| MiFID |
Markets in Financial Instruments Directive |
| MiFIR |
Markets in Financial Instruments Regulation |
| MoF |
Ministry of Finance |
| MREL |
Minimum requirement for own funds and eligible liabilities |
| NCA |
National Competent Authority |
| NCWO |
No Creditor Worse Off |
| NPL |
Nonperforming Loan |
| NSFR |
Net Stable Funding Ratio |
| RA |
Resolution Authority |
| OCR |
Own Funds Requirements |
| PEL |
Plan Epargne Logement |
| PPSs |
Policyholder Protection Schemes |
| RRP |
Recovery and resolution planning |
| SCR |
Solvency Capital Requirement |
| SI |
Significant Institution |
| SRB |
Single Resolution Board |
| SREP |
Supervisory Review and Evaluation Process |
| SSM |
Single Supervisory Mechanism |
| UCITS |
Undertaking for Collective Investment in Transferable Securities |