Regulatory AlertsDOC-2013-12 Necessity of Offering a Guarantee (Formula and/or Capital) for Structured UCITS and AIFs, Guaranteed UCITS and AIFs, and Structured Debt Securities
The French Financial Markets Authority (AMF) issued Position DOC-2013-12 to prevent the inappropriate marketing of structured UCITS, AIFs, and similar structured debt securities to retail investors. The regulator mandates that guarantees on formula results or capital must be provided by an authorized entity to ensure clients accurately understand the associated risks. This requirement aims to mitigate the danger of non-professional clients misapprehending the risk profile when guarantees are not backed by authorized institutions.
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