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Monetary and Financial Code – Legislative Section
2. The service is provided on the client's initiative, including
that of a potential client;
3. The service provider has informed the client in advance,
including a potential client, that the provider shall not be required
to assess the appropriateness of the service or of the financial
instrument;
4. The service provider has complied with the provisions of
Article L. 533-10.
Replaced by Order No. 2007-544 of 12 April 2007 Art. 4 Official Journal of
13 April 2007
Article L. 533-13-1. ― I. ― Where the financial instruments
offered to the clients give rise to the publication of information
documents pursuant to Articles L. 214-12, L. 214-109 or L. 412-1,
the investment service providers shall draw up agreements with
the units responsible for publishing said information documents.
Said agreements shall determine, inter alia:
1 The conditions under which investment service providers
shall be required to submit all promotional documents to said
units, prior to their distribution, to enable them to verify their
compliance with the information documents drawn up by said
units;
2 The conditions under which said units shall make available
to the service providers the information required to assess all the
financial features of the financial instruments.
II. ― A decree issued following consultation with the Conseil
d'Etat shall set forth the implementing provisions of paragraph I,
inter alia the cases and conditions in which the obligation to draw
up an agreement is not warranted in view of the nature of the
financial instruments or their method of distribution.
Inserted by Order No. 2008-1271 of 5 December 2008 Art. 2 Official Journal
of 6 December 2008
Article L. 533-14. − The investment service providers shall
make up a dossier which contains the document(s) they and their
clients have approved and in which the rights and obligations of
the parties shall be set forth, as well as the conditions under
which the former shall provide services to the latter.
Where they provide an investment service other than
investment consultancy, investment service providers shall enter
into a non-professional agreement with their new clients which
determines the principal rights and obligations of the parties in
the conditions and under the terms set forth in the General
Regulation of the Autorité des Marchés Financiers.
New clients are those who are not bound by an agreement in
force as of 1 November 2007.
For the purposes of the first and second paragraphs, the
rights and obligations of the parties to the contract may be
determined by reference to other legal documents or texts.
Replaced by Order No. 2007-544 of 12 April 2007 Art. 4 Official Journal of
13 April 2007
Article L. 533-15. − Investment service providers shall report
to their clients on the services provided to them. Said report shall
indicate, where appropriate, the costs associated with the
transactions carried out and with the services provided on behalf
of the client.
Replaced by Order No. 2007-544 of 12 April 2007 Art. 4 Official Journal of
13 April 2007
Article L. 533-16. − The General Regulation of the Autorité
des Marchés Financiers sets forth the implementing provisions of
Articles L. 533-11 to L. 533-15, taking account of the type of
service offered or provided, the nature of the financial instrument
involved and the client's, or potential client's, professional status
or otherwise.
A professional client is a client who has the experience,
knowledge and competence required to make his own investment
decisions and correctly assess the risks incurred.
A decree shall set forth the criteria according to which clients
shall be deemed to be professional.
Clients who meet said criteria may ask to be treated as nonprofessional clients and the investment service providers may
agree to grant them a higher level of protection, according to
terms set forth in the General Regulation of the Autorité des
Marchés Financiers.
The General Regulation of the Autorité des Marchés
Financiers also stipulates the terms and conditions under which
clients who do not meet said criteria may, at their request, be
treated as professional clients.
Replaced by Order No. 2007-544 of 12 April 2007 Art. 4 Official Journal of
13 April 2007
Article L. 533-17. − The General Regulation of the Autorité
des Marchés Financiers stipulates the conditions under which an
investment service provider which receives, through another
investment service provider, an instruction to provide investment
services or related services on behalf of a client, may rely on the
steps taken by the latter. The investment service provider which
conveyed the instruction shall remain liable for the completeness
and accuracy of the information provided.
An investment service provider which receives an instruction
as described above to provide services on behalf of the client may
also base itself on any recommendation relating to the service or
to the transaction in question that was given to the client by said
other service provider. The investment service provider which
conveyed the instruction shall remain liable for the
appropriateness of the recommendations or advice provided to
the client concerned.
An investment service provider which receives an instruction
or an order from a client through another investment service
provider shall remain liable for the provision of the service or the
execution of the transaction in question on the basis of the
aforementioned information or recommendations, pursuant to
the relevant provisions of this Part.
Replaced by Order No. 2007-544 of 12 April 2007 Art. 4 Official Journal of
13 April 2007
Article L. 533-18. − I. – When executing orders, investment
service providers shall take all reasonable measures to obtain the
best possible result for their clients, taking account of the cost,
the swiftness, the likelihood of execution and settlement, the size
and nature of the order or any other consideration pertinent to its
execution. Nevertheless, wherever there is a specific instruction
given by the clients, the service providers shall execute the order
pursuant to said instruction.
II. – Investment service providers shall establish and
implement effective provisions to meet the requirements of the
first paragraph. They shall establish and implement an orderexecution policy that enables them to obtain the best possible
result for their clients' orders.
III. – For each instrument category, the order-execution
policy shall include information on the different systems on
which the investment service provider shall execute its clients'
orders and the factors influencing the choice of said system. Said
information shall cover at least the systems that permit the service
provider to obtain, in most cases, the best possible result from
execution of the clients' orders.
The investment service providers shall provide their clients
with appropriate information on their order execution policy.
They shall obtain their clients' prior consent for said execution
policy.