Section 2: Management standards applicable to investment services providers and prudential provisions applicable to investment firms

Articles in this section · 15

Article L533-2-2

French Monetary and Financial CodeIn force

Updated 7 Nov 2023

Class 2 investment firms shall have in place sound, effective and comprehensive arrangements, strategies and processes for assessing and maintaining, on an ongoing basis, the amount, type and distribution of internal capital and liquid assets which they consider appropriate to cover the nature and level of risks which they may impose on other entities and to which they are or may be exposed.

The systems, strategies and processes referred to in the first paragraph shall be appropriate and proportionate to the nature, scale and complexity of the activities of the investment firm concerned. They shall be subject to the regular internal control referred to in Article L. 533-29-1.

These controls cover the risks to clients, market risks, risks to the investment firm, in particular those that could reduce capital, and liquidity risk, as referred to in Article L. 533-29-1.

The parent undertakings of groups subject to supervision on a consolidated basis pursuant to Article L. 613-20-1 shall ensure that the systems, strategies and procedures referred to in the first paragraph that are implemented by their subsidiaries are consistent with each other and well integrated.

The Autorité de contrôle prudentiel et de résolution may ask Class 3 investment firms to apply the requirements set out in this article to the extent that it deems appropriate.

The conditions of application of the internal capital adequacy assessment process are specified by order of the Minister responsible for the economy.

Mariela Petrova

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Working with a corporate lawyer in France — Q&A

Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

Yes — most of our clients are foreign suppliers, investors or holding entities. We bridge the gap between French law and your home jurisdiction's expectations and deliver everything bilingually.

The SAS (Société par Actions Simplifiée) is the default choice for most international structures: flexible governance, single shareholder allowed, no minimum capital, and works cleanly with foreign holding entities. We assess SARL, SA, SCI on the merits when the situation calls for it.

Yes — communications with a French avocat are protected by the secret professionnel (Article 66-5 of the Law of 31 December 1971). This protection is broader than the common-law attorney-client privilege and applies to written and oral exchanges.

We work on fixed fees for clearly scoped engagements (incorporation, contract drafting, audits) and on monthly retainers for ongoing advisory. Hourly billing is the exception, not the default. You always know the cost before work starts.

Typical timeline is 2–3 weeks from KYC kick-off to RCS registration, assuming standard documentation. Holding-company structures, foreign-shareholder identification or in-kind contributions can extend this — we flag the gating items at the first meeting.

Absolutely. We routinely coordinate with your in-house counsel, expert-comptable or notaire — pragmatic collaboration is the norm, not the exception. We send them everything they need to do their part without duplicating work.

Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

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Communications protected by professional secrecy — secret professionnel de l'avocat, Article 66-5 of the Law of 31 December 1971.

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