Sustainable finance, financial innovation and a teased five-year strategic plan will underpin the Autorité des Marchés Financiers (AMF) activities over the coming year, its chair has said.
In a statement outlining its supervisory and action priorities for 2023, the AMF said it will work closely with the European Securities and Markets Authority (Esma) to develop “supervisory convergence” and will take a front-foot approach to create new European legislation, particularly on investor protection.
The regulatory framework for sustainable finance and efforts to curb greenwashing are also on the regulator’s agenda for the coming year.
The AMF will also review the first reports by listed companies on their environmentally sustainable economic activities and will assist markets in preparing the Corporate Sustainability Reporting Directive (CSRD) implementation.
Retail investors can expect more easy-to-read information on fees charged or on information and warnings about financial products.
Liquidity management by investment funds is also on the AMF’s radar. It said it is committed to addressing the issues of financial market resilience and efficiency and will work alongside the Financial Stability Board and the International Organization of Securities Commissions (IOSCO) to bolster investor protection.
It comes after the AMF fined H2O Asset Management and a number of its executives for breaching investment management rules surrounding investments in illiquid instruments.
For investment management companies, the AMF’s supervisory priorities list the application of SFDR, the quality of reporting data, cybersecurity arrangements and risk control systems as key areas for the upcoming year.
The quality of post-trade data on bonds under the Markets In Financial Instruments Directive (MIFIR), transaction data from reporting on derivatives and cross-border activities will form the central pillar of the regulator’s activity within the intermediary space.
“In these different areas, we have taken note with interest of several initiatives by the public authorities, including a draft bill proposed by the Senate to strengthen investor protection, said AMF chair Marie-Anne Barbat-Layani.
“The Ministry of the Economy, Finance and Industrial and Digital Sovereignty has also announced a draft law on green industry. We intend to bring our expertise and be a force of proposal,” she said.
Barbat-Layani added the AMF will share details on its five-year strategic plan before the summer.
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