DOC-2011-10 Registration at the OPC Level of Loss or Gain Resulting from Settlement Failure After Issuance of a Subscription Order

The French Financial Markets Authority (AMF) clarifies that when a management company invests before receiving subscription funds, it assumes credit risk. In the event of a subscriber's default, the management company must divest, and the resulting gain or loss must be recorded at the level of the UCITS (OPCVM). This position is based on Articles 411-68 and 422-46 of the General Regulation.

France

Autorite des Marches Financiers