French Monetary and Financial Code
In forceI. - The Autorité de contrôle prudentiel et de résolution may ask the statutory auditors of persons subject to its supervision for any information on the business and financial situation of the entity that they audit and on the due diligence that they have performed there in the course of their engagement.
The Autorité de contrôle prudentiel et de résolution may also provide the statutory auditors of the persons mentioned in the previous paragraph, UCITS, AIFs covered by paragraphs 1, 2 and 6 of sub-section 2, paragraph 2 or sub-paragraph 1 of paragraph 1 of sub-section 3, or sub-section 4 of Section 2 of Chapter IV of Title I of Book II and their management companies with the information necessary for the performance of their duties. It may ask them to provide the additional report provided for in III of article L. 823-16 of the French Commercial Code.
The information thus transmitted is covered by the rule of professional secrecy.
The Autorité de contrôle prudentiel et de résolution may also send written observations to the statutory auditors, who are then required to respond in the same form.
The first paragraph applies to the specific auditors of sociétés de crédit foncier and sociétés de financement de l'habitat.
II - Statutory auditors are required to report as soon as possible to the Autorité de contrôle prudentiel et de résolution and, where applicable, to the European Central Bank, any fact or decision concerning the person subject to its supervision of which they have become aware in the course of their duties, of a nature :
1° Constitute a breach of the legal or regulatory provisions applicable to it that is likely to have a material impact on its financial situation, solvency, results or assets and liabilities;
1° bis A entraîner, dans le cas particulier des organismes d'assurance ou de réassurance relevant du régime dit "Solvabilité II" mentionnés à l'article L. 310-3-1 du code des assurances, à l'article L. 211-10 du code de la mutualité et à l'article L. 931-6 du code de la sécurité sociale, le non-respect du capital de solvabilité requis visé à l'article L. 352-1 du code des assurances ou du minimum de capital requis visé à l'article L. 352-5 du code des assurances;
1° ter result, in the specific case of the supplementary professional retirement funds referred to in Article L. 381-1 of the Insurance Code, the supplementary professional retirement mutuals or unions referred to in Article L. 214-1 of the Mutual Code or the supplementary professional retirement institutions referred to in Article L. 942-1 of the Social Security Code, in non-compliance with the solvency margin referred to in Article L. 385-2 of the Insurance Code;
2° undermining its ability to continue as a going concern;
3° Impose the issue of reservations or the refusal to certify its accounts.
The same obligation applies to the above-mentioned facts and decisions of which the statutory auditors become aware in the course of their engagement with a parent company or subsidiary of the audited entity or with a body subordinate to a mutual association, union or body covered byarticle L. 212-7 of the Mutual Code.
When the statutory auditors perform their duties in a credit institution or finance company affiliated to one of the central bodies mentioned in Article L. 511-30, the facts and decisions mentioned in the previous paragraphs are sent simultaneously to this central body.
III - For the application of the provisions of this section, statutory auditors are bound by professional secrecy with regard to the Autorité de contrôle prudentiel et de résolution and, where applicable, the European Central Bank, as well as the central bodies mentioned in Article L. 511-30; they may not be held liable for the information or disclosure of facts which they provide in compliance with the obligations resulting from these provisions.
Unless there are compelling reasons to the contrary, the facts or decisions mentioned in II shall be sent simultaneously to the Chairman of the Board of Directors or Supervisory Board of the credit institution, finance company or investment firm concerned, who shall inform the Board, the members of the Management Board and the persons mentioned in Article L. 511-13 and Article L. 532-2, paragraph 4.
IV - The Autorité de contrôle prudentiel et de résolution may require persons subject to its supervision to replace their statutory auditor if the latter has acted in breach of his obligations under II of this article.
