French Monetary and Financial Code
In forceOnly the following may carry on the business of custody account-keeping for financial instruments
1° Legal entities in respect of the financial instruments they issue by public offer, with the exception of the offers referred to in 1° or 2° of Article L. 411-2 or in Article L. 411-2-1;
2° Credit institutions established in France;
3° Investment firms established in France;
4° Legal entities whose members or partners are indefinitely and jointly and severally liable for their debts and commitments, provided that these members or partners are institutions or undertakings referred to in 2° and 3° authorised to administer or hold financial instruments;
5° Legal entities established in France whose principal or sole purpose is the custody or administration of financial instruments, as well as those whose sole purpose is the administration of one or more institutions for collective occupational retirement provision;
6° The institutions referred to in Article L. 518-1 ;
7° In accordance with the conditions laid down by the General Regulation of the Autorité des marchés financiers, credit institutions, investment firms and legal entities whose principal or sole purpose is the custody or administration of financial instruments that are not established in France.
The persons referred to in 1° are subject to the supervision and sanctioning powers of the Autorité des marchés financiers in respect of their activity as administrators or custodians of financial instruments. The persons referred to in 2° to 5° are subject to the legislative and regulatory obligations and to the rules governing supervision and sanctions laid down by this Code for investment services providers in respect of their activities as administrators or custodians of financial instruments. The persons referred to in 2° and 3° are authorised to administer or hold financial instruments as part of their authorisation. The persons referred to in 5° are subject to the authorisation rules laid down by this Code for investment firms.
The persons referred to in 7° must be subject in their home country to rules governing the custody or administration of financial instruments and supervision equivalent to those in force in France. The Autorité des marchés financiers shall exercise over these persons the supervisory and sanctioning powers provided for by this Code for investment service providers, taking into account the supervision exercised by the competent authorities of each State.
