French Monetary and Financial Code
In forceI. - For the purposes of II of Article L. 533-12, the information provided to clients is as follows:
1° Where they provide the investment service referred to in 5° of Article L. 321-1, investment service providers other than portfolio management companies shall indicate to the client, in good time before the service is provided:
- whether the investment advice is provided independently ;
- whether the investment advice is based on a broad or more restricted analysis of different types of financial instruments and in particular whether the range is limited to financial instruments issued or offered by entities which have close links with the investment service providers or any other legal or economic relationship, such as a contractual relationship so close that it may affect the independence of the advice provided;
- they provide clients with a periodic assessment of the suitability of the financial instruments recommended to them.
2° The information on the financial instruments and investment strategies proposed includes appropriate guidance and warnings on the risks inherent in investing in these instruments or in certain investment strategies, as well as information on whether the financial instrument is intended for non-professional clients or professional clients, taking into account the target market defined in accordance with Article L. 533-24.
3° Information on all related costs and fees shall include information relating to investment and related services, including the cost of advice, if any, the cost of financial instruments recommended to the client or marketed to the client and how the client can pay for them, which shall also include any third-party payments, under the conditions set out in Article 50 of Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU.
Information on all costs and charges, including costs and charges related to the investment service and the financial instrument, which are not caused by the occurrence of an underlying market risk, shall be aggregated to enable the customer to capture the total cost, as well as the cumulative effect on the return on investment. If requested by the client, a breakdown by line item is provided. Where appropriate, this information shall be provided to the customer on a regular basis, at least annually, during the lifetime of the investment, in accordance with the conditions set out in Article 50.9 of Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU.
Where the agreement to buy or sell a financial instrument is entered into using a means of distance communication that prevents prior disclosure of information on costs and charges, investment service providers other than asset management companies may, without undue delay after the conclusion of the transaction, provide a retail client with information on costs and charges either electronically or, at the client's request, in paper form, where:
- the customer has consented to receive this information without undue delay after the transaction has been concluded ;
- the customer has had the option of postponing the conclusion of the transaction until he has received this information;
- the customer had the option of receiving this information before the transaction was concluded.
The obligation to communicate the above information does not apply to services provided to professional clients, unless they concern investment advice or portfolio management services on behalf of third parties.
II. - For the application of III bis of Article L. 533-12, investment service providers other than portfolio management companies shall inform retail clients, in particular potential clients, that they may receive free of charge, on paper, the information relating to the provision of an investment service or a related service that must be sent to them on a durable medium.
They shall inform their existing retail clients who receive such information on paper that, after a minimum period of eight weeks, they will automatically receive such information electronically. They shall also inform them that they may request, within the same period, to continue to receive this information in paper form.
