Section 6: Administrative police measures

I. - Where the solvency or liquidity of a person subject to supervision by the Authority or where the interests of its customers, policyholders, members or beneficiaries, are compromised or are likely to be compromised, or where information received or requested by the Authority for the purposes of exercising supervision is such as to establish that that person is likely to fail within a period of twelve months to comply with the obligations laid down in Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 or, where applicable, by Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019, by a provision of Titles I and III of Book V or of a regulation adopted for its implementation, or by any other legislative or regulatory provision whose breach entails a breach of the aforementioned provisions, the Autorité de contrôle prudentiel et de résolution shall take the necessary precautionary measures.

To this end, it may:

1° Place the person under special supervision ;

2° Instruct one or more of its staff to carry out permanent supervision of the person concerned in order to closely monitor his situation;

3° Temporarily limit or prohibit the exercise of certain operations or activities by this person, including the acceptance of premiums or deposits;

4° Temporarily suspend, restrict or prohibit the free disposal of all or part of the controlled person's assets;

5° Requiring that person to divest businesses;

6° Limit the number of agencies or branches of this person;

7° Order a person referred to in 1°, 3°, 5° and 9° to 11° of B of I of Article L. 612-2 to suspend, delay or limit, for all or part of the portfolio, the payment of surrender values, the option of arbitration, the payment of policy loans or the option of surrender;

8° Pronounce the automatic transfer of all or part of a credit or deposit portfolio of a credit institution;

9° Decide to prohibit or limit the distribution of dividends to shareholders, the remuneration of mutual or parity certificates or the remuneration of members' shares to the members of these persons;

10° Decide to prohibit or limit the payment of interest to holders of additional Tier 1 capital instruments as defined in Article 52 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013, unless such limitation or prohibition were to be considered as an event of default by persons subject to the supervision of the Authority ;

11° Require the reduction of risk inherent in the activities, products and systems of credit institutions, investment firms and finance companies, including outsourced activities;

12° Suspend one or more managers of the supervised person;

13° Enjoin one of the persons mentioned in 1°, 3°, 5° and 9° to 11° of B of I of Article L. 612-2 of this Code to submit, within a period that it shall determine and which may not be less than four months, a request for the transfer of all or part of its portfolio of insurance contracts, transactions or contract or settlement subscription forms, under the conditions provided for in Articles L. 324-1 and L. 384-1 to L. 384-3 of the Insurance Code, L. 212-11 and L. 214-11 of the Mutual Code and L. 931-16 and L. 941-13 of the Social Security Code;

14° Once it has established that the transfer procedure provided for in 13° of this I has failed, order the automatic transfer of all or part of the portfolio of insurance contracts, transactions or contract or regulation membership forms held by the persons mentioned in 1°, 3°, 5° and 9° to 11° of B of I of Article L. 612-2 under the conditions provided for in Article L. 612-33-2 ;

15° Require class 2 and class 3 investment firms to reduce the risks threatening the security of networks and information systems used by investment firms in order to guarantee the confidentiality, integrity and availability of their processes, data and assets.

II. - When the Autorité de contrôle prudentiel et de résolution considers that the early intervention measures taken pursuant to Article L. 511-41-5 or Article L. 533-4-3 are not sufficient either to put an end to serious breaches by a credit institution, an investment firm referred to in 2° of I of Article L. 613-34 or a finance company referred to in II of Article L. 613-34 of the regulations applicable to it, it shall inform the AMF. 613-34 of the regulations applicable to it or of the provisions of its Articles of Association, or to restore its financial situation, it may dismiss one or more of the persons mentioned in Article L. 511-13 or Article L. 532-2(4), or all or some of the members of the Board of Directors, the Supervisory Board or any other body exercising equivalent supervisory functions.

III. - The Autorité de contrôle prudentiel et de résolution may suspend the persons referred to in Article L. 612-23-1 if they no longer meet the conditions of good repute, skills, experience or, where applicable, knowledge required by their position and if the urgency justifies this measure with a view to ensuring sound and prudent management.

IV. - In the event of failure to comply with the rules designed to ensure customer protection with regard to the marketing of structured deposits, the Autorité de contrôle prudentiel et de résolution may suspend the marketing or sale of structured deposits where the conditions of Articles 42 of Regulation (EU) No 600/2014 of 15 May 2014 are met or where a credit institution has not developed or applied a genuine product approval process, or has not complied with the requirements of 3 of II of Article L. 533-10, Article L. 533-24 and 3 and 4 of Article L. 533-24-1 of this Code.