Regulation of Financial Markets and Sanctioning of Stock Market Offenses in French Law: An Analysis of AMF's Role and Powers

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Regulation of Financial Markets and Sanctioning of Stock Market Offenses in French Law: An Analysis of AMF's Role and Powers

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Themes

Financial Markets Authority, AMF, market abuse, Market Abuse Directive, MAD, Market Abuse Regulation, MAR, stock market offenses, financial market regulation, French law, Monetary and Financial Code, market manipulation, insider trading, administrative sanctions, fines, bans on practicing, public warnings, National Financial Prosecutor's Office, PNF, penal prosecutions, financial crimes, Listing Act, SMEs, regulatory framework, European regulations, market surveillance, sanctioning market abuse, COB, SEC, OECD, Sapin 2 law, financial market integrity, stability, stock exchange regulation, Commission des Opérations de Bourse, Securities and Exchange Commission, financial infractions, criminal offenses, imprisonment, economic growth, investment, regulatory constraints, small and medium-d enterprises, France, European Union, financial sector, market participants, financial instruments, artificial price, misleading indications, demand, supply, price manipulation, financial sanctions, enforcement actions, regulatory reforms, transparency, rigor, stock market infractions, financial prosecutions, complex economic cases, financial cases, corruption, fraud, serious offenses.

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Abstract

Discover how French law regulates financial markets and sanctions stock market offenses to ensure integrity and stability. The Financial Markets Authority (AMF) plays a crucial role in surveillance and enforcement, imposing stricter administrative sanctions and intervening in cases of market manipulation or insider trading. Recent reforms, such as the Sapin 2 law, have strengthened the AMF's capabilities, leading to increased sanctions, including fines and bans on practicing. Learn about the cooperation between the AMF and the National Financial Prosecutor's Office (PNF) in sanctioning stock market infractions and the evolving regulatory framework that aims to revitalize financial markets for small and medium-sized enterprises (SMEs). Understand the severity of sanctions for market manipulation, insider trading, and other serious offenses, with penalties including up to two years' imprisonment and significant fines. Stay informed about the dynamic regulation of France's financial market.

Extract

[...] Title The Distribution of Competences between the Financial Markets Authority and the National Financial Prosecutor's Office The cooperation between the AMF and the PNF is therefore essential in the process of sanctioning stock market infractions. Moreover, the PNF can sometimes benefit from the AMF's prior investigations to accelerate the penal procedures150, This marks a real willingness on the part of the two authorities, administrative and penal, to work together towards the same goal. In fact, the The collaboration with the AMF is reinforced by agreements that allow for a smooth exchange of information and analyses, essential for investigations into stock market infractions151. [...]

[...] The Listing Act has filled this gap by introducing specific sanctions for market manipulations using high-frequency trading algorithms66. In concrete terms, the Listing Act provides that any abusive use of trading algorithms aimed at manipulating stock prices can now result in fines of up to 50 million euros, in addition to the confiscation of illicit profits made through these practices. Furthermore, individuals found guilty of these infractions may be barred from engaging in any financial market-related activities for a period of up to ten years. [...]

[...] Title The Evolution and Strengthening of the AMF Since its creation, the AMF has never stopped seeing its powers of sanction evolve and strengthen117. For example, in 2008, it had already been several years since the AMF was thinking of equipping itself with a transaction power118 even if in the face of this proposal, one had to expect that disappointed shareholders would rely on the transaction to deduce an admission of fault and trigger a judicial action119. As early as 2009, certain authors such as Nicolas Rontchevsky were already asking themselves the question of the evolution of the AMF's sanction power120. [...]

[...] - J. Pradel and G. Vanneste, General Penal Law, Dalloz Course, 20th ed., 2018. - M.-A. Frison-Roche, 'The Regulation of Financial Markets: The Experience of the SEC in the United States', Financial Markets Law, 3rd ed., Presses Universitaires de France pp. 112-130. - T. Bonneau, P. Pailler, A.-C. [...]

[...] Title Prescription of Public Action The particular case of the sanction for stock market offenses also stands out in terms of the statute of limitations for public action. The statute of limitations for public action plays a decisive role in defining the time limit within which the State can initiate proceedings against the alleged perpetrators of offenses196. This framework is essential to maintain a balance between the need to repress offenses and the right of individuals to legal security197. For most crimes, including certain stock market offenses, the standard statute of limitations is six years from the day the offense was committed, in accordance with Article 8 of the Code of Criminal Procedure198. [...]

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