Name
Global FinTech Guide
Country _ Name
France
SectionTitle
Asset and portfolio management
Body
FinTechs belonging to this category offer asset and portfolio management services via an internet platform or software programs and usually manage and dispose of the assets of their customers long or short term according to their specifications without actually holding the property or the possession of those assets. FinTechs, which provide information about and access to overnight or time deposit accounts at national and foreign banks and which execute the transactions to these accounts, also belong to this category. Some FinTechs however only act on request of the customer.

Aside from that some FinTechs offer software or internet solutions enabling users to manage and plan their personal finances on their own by providing graphics, overviews and compilations of their financial data and sometimes indicating financial risks or opportunities, but without actually managing the assets.

Introduction

Attitude of the country towards modern asset and portfolio management services

The number of licensed portfolio management companies reached a climax of 680 in France on the 31st of December 2020, being the highest level since the entities were regulated.

The French asset management industry is thus very dynamic with a growth of 39 companies on average every year since 2010. This trend is due to the following:

  • A dynamism in entrepreneurial flows and innovative projects. These new players account for 72% of initial licenses in 2020 (while they reached 58% in 2019, 50% in 2018 and 51% in 2017); 
  • A certain permanence in demands related to capital-investment and real estate which accounts for two thirds of the given licenses in 2020 (while they reached 62% in 2019 and 63% in 2018). Real-estate projects accounted for around 30% of the said licenses which in itself is a significant growth from the previous year.
  • Paris gaining ground after the Brexit, being the privileged city for British players wanting to be relocated in the European Union. In fact, many British portfolio management companies joined France in 2020 (AMF, Chiffres clés 2020 de la gestion d’actifs, January 2022).

The French financial markets authority, known as the Autorité des Marchés Financiers (“AMF”), regulates the French financial markets place, its participants and the investment services. 

Following through, the main legal corpuses for asset management are two European directives:

  • Directive (EC) No 2009/65 of the European parliament and of the council related to Undertaking for Collective Investments in Transferable Securities (“UCITS”);
  • Directive (EU) No 2011/61 of the European parliament and of the council on Alternative Investment Fund Managers (“AIFM”).

Being transposed into French law, those two directives implemented transparency obligations on asset managers towards the regulator, investors and other key players in order to enhance the quality of the services and the trustworthiness in the management carried out.

They also implemented risk prevention mechanisms in order to alleviate certain risks and gain in robustness.

Legal affairs

Obligations and requirements to provide asset and portfolio management, or ancillary services described above

UCITS and, in principle, AIF management requires authorisation as a portfolio management company.

Portfolio management companies need to be licensed by the AMF, in accordance with article L.532-9 of the CMF.

The said article defines portfolio management companies as any corporation that manages one of the following: UCITS (undertakings for collective investment in transferable securities), AIF (alternative investment funds), Foreign-

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