MiFID tops AMF Agenda

Mar 28 2007 Martin Coyle

The Autorité des Marchés Financiers has said that work on implementing the Markets in Financial Instruments Directive will be its main priority over the coming year, following the release of its 2007/08 work programme.

Over the past year the regulator has published two MiFID documents, the first looking at the major principles of the directive and their consequences for market participants. The second addressed best execution principles and implementation consequences for market participants. At the turn of the year it also published a draft version of its General Regulation that will take effect on November 1. The AMF said that between now and November it would clarify and interpret the texts in order to assist the industry in its implementation.

As well as MiFID the AMF will follow up the European Commission white paper on asset management, as well as changes to market and post-trade infrastructures.

More generally the regulator said that it would use 2007 to pursue its "better regulation" initiative, which has been designed to promote a regulatory framework more capable of integrating financial innovation in France. To this end the AMF board has adopted eight objectives.

· to optimise initiatives to safeguard investments and to enhance the quality of marketing documents designed for investors;

· to strengthen dialogue with individual investors through the consultative commission for retail investors and minority shareholders and by promoting financial education for the general public;

· to better define the framework for regulatory work with professionals, through improved and more efficient consultation procedures;

· to adapt texts and procedures to reflect the diversity and size of market participants, and conduct a cost-benefit analysis of measures;

· to identify areas at risk in order to improve day-to-day delivery of services;

· to increase the effectiveness of punitive measures by ensuring that investigations and sanction proceedings do not exceed two years, except for particularly complex cases;

· to participate more actively in international bodies and promote on behalf of the industry and individual investors open and fair competition through European harmonisation; and

· to further improve the management of resources by redeploying them as effectively as possible.

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