Regulatory Alerts2008-04-30
Instruction No. 2008-04 of April 30, 2008, on the segregation of client funds of investment firms, as amended by Instructions No. 2009-01 and No. 2009-02 of June 19, 2009, and Instruction No. 2011-I-18 of November 23, 2011
The Banking Commission mandates that investment firms holding client funds incidentally to their main activity must segregate these funds according to specific regulatory calculations. These firms are required to extract calculation data from their accounting systems, report it in thousands of euros using the designated CANTONNEM table, and submit this report to the Prudential Supervision and Resolution Authority quarterly. This instruction, which supersedes Instruction No. 2005-03, entered into force on December 31, 2008.
OFFICIAL TEXTS OF THE BANKING COMMISSION Instruction No. 2008-04 of April 30, 2008 On the segregation of client funds of investment firms, as amended by Instructions No. 2009-01 and No. 2009-02 of June 19, 2009, and by Instruction No. 2011-I-18 of November 23, 2011
The Banking Commission, Having regard to the Monetary and Financial Code, particularly Articles L. 533-10, L. 611-3, L. 613-8, and D. 533-11; Having regard to the Order of the Minister of the Economy, Finance, and Employment of July 2, 2007, on the segregation of client funds of investment firms. Decides:
Article 1 Investment firms referred to in Article L. 531-4 of the Monetary and Financial Code, other than portfolio management companies referred to in Article L. 532-9 of the same Code, shall be subject to this Instruction when they hold funds on behalf of their clients as an ancillary activity to their main business.
Article 2 The term "client" or "clients" refers to "professional" or "non-professional" clients within the meaning of Article 2 of the Order of July 2, 2007.
Article 3 The elements for calculating the amount of client funds to be segregated, as well as those of the assets eligible for such segregation, in accordance with Articles 3 and 4 of the Order of July 2, 2007, shall be extracted from the accounting and information systems of the firms subject to this requirement and reported in thousands of euros in a "Segregation of Client Funds of Investment Firms" table titled "CANTONNEM," which is reproduced in the annex to this Instruction.
Article 4 The "CANTONNEM" table "Segregation of Client Funds of Investment Firms" shall be transmitted to the General Secretariat of the Prudential Supervision and Resolution Authority with each quarterly report, based on the elements finalized on the last business day of the relevant quarter. It must reach the General Secretariat no later than the twenty-fifth day following this deadline.
Article 5 This Instruction shall enter into force on December 31, 2008.
Article 6 Instruction No. 2005-03 of October 19, 2005, is repealed on the same date.
Paris, April 30, 2008 The President of the Banking Commission [Jean-Paul REDOUIN]
OFFICIAL TEXTS OF THE BANKING COMMISSION Instruction No. 2008-04 of April 30, 2008 Annex to Instruction No. 2008-04, as amended by Instructions No. 2009-01 and No. 2009-02 of June 19, 2009, and by Instruction No. 2011-I-18 of November 23, 2011