Over the past two years, rising interest rates and inflation have shifted retail investors’ expectations regarding financial products, prompting regulatory authorities to adapt their oversight of commercial practices. In this evolving economic landscape, coupled with increased digitalization and a resurgence in financial scams, the ACPR-AMF Joint Unit’s role has become crucial.
To ensure retail investor protection, the authorities have actively participated in various European and national regulatory initiatives. A significant focus has been on addressing greenwashing and developing reliable sustainable financial products. The Autorité de Contrôle Prudentiel et de Résolution (ACPR) and the Autorité des Marchés Financiers (AMF) have collaborated through their Joint Unit to enhance the regulatory framework for sustainable finance. Their efforts include simplifying client information on sustainable products and refining the Sustainable Finance Disclosure Regulation (SFDR) to improve transparency and marketing effectiveness.
In combating greenwashing, regulatory scrutiny on the use of sustainability claims in advertising has intensified, resulting in a notable decrease in such claims for financial products.
The ACPR and AMF have also been heavily involved in the European Commission’s Retail Investment Strategy, advocating for retail investor protection while ensuring the unique aspects of the French market are considered. They contributed to discussions on measuring the cost/performance ratio of investment assets and engaged with the industry regarding the ‘value for money’ of unit-linked products in life insurance and retirement savings plans. Additionally, the AMF has published guidelines to standardize fee terminology, aiding investor understanding.
In 2023, the AMF and ACPR closely monitored the impact of the real estate market slowdown on real estate investment vehicles. The Joint Unit has been examining potential regulatory adjustments for real estate and private equity funds, especially those classified under ‘Other AIFs,’ to enhance investor protection.
The resurgence of financial scams has prompted the ACPR and AMF to intensify their preventive measures. They have raised awareness about new fraudulent techniques such as spoofing, quishing, and identity theft. Notably, they have flagged 1,350 unauthorized websites or market participants, including nearly 965 cases of identity theft, on their Assurance Banque Épargne Info Service (ABEIS) blacklists.
To educate the public, particularly younger audiences, the authorities produced a video on online scams with Brut media and Youtuber Micode, amassing over 1.5 million views. A radio campaign titled “Let’s Talk About Financial Scams!” was also launched, reaching 3.4 million listeners across 350 stations.
Looking ahead, in 2024, the ACPR and AMF will establish a working group to analyze the market for structured products offered to the general public via life insurance policies or securities accounts. This initiative aims to deepen their understanding of market dynamics, asset management, marketing practices, and current trends.
