The AMF and the ACP have noted that the scope of placing services has raised many queries among distributors and producers of financial products. The two authorities have therefore adopted a common position in the form of a Q&A to clarify the scope of placing services with regard to financial instrument marketing.
This position:
- clarifies the scope of placing services in a situation where financial instruments are marketed.Such services are characterised by two cumulative criteria: a service must be provided to an issuer or transferor of financial instruments (not to an investor) and the service provided aims to seek subscribers or purchasers directly or indirectly;
- considers that marketing certain types of products, listed in the position1, which are primarily intended to provide an investment solution to investors, does not constitute providing the service of placing without a firm commitment basis;
- points out that the activity of seeking subscribers or purchasers in connection with an approved provider of a placing service does not require authorisation, provided no commitment is made in terms of the amount of subscriptions or purchases;
- emphasises that the marketing of financial instruments is generally accompanied by the provision of one or more services to the investor (reception and transmission of orders for third parties/investment advice), which require compliance with rules of conduct and organisational rules.
Below are links to the common position of the AMF and the ACP. The two authorities’ positions are differently numbered but the content is identical:
1 Namely financial securities issued by collective investment schemes, real estate collective investment schemes, real estate investment companies, forestry investment companies, closed-end investment funds or securitisation entities or structured debt securities issued by credit institutions or investment firms with registered offices in a Member State of the European Union or in another State party to the European Economic Area Agreement.