French Monetary and Financial Code
In forceThe units or shares of undertakings for collective investment and investment funds referred to in 3° of I of Article L. 214-20 include units or shares of UCITS governed by French or foreign law or units or shares of FIAs governed by French law or FIAs established in other Member States of the European Union or in other States party to the Agreement on the European Economic Area, as well as investment funds established under foreign law, provided that :
1° These other AIFs or investment funds governed by foreign law are subject to supervision equivalent to that applicable to UCITS and that cooperation between the Autorité des marchés financiers and the supervisory authority of this undertaking or fund is sufficiently guaranteed;
2° The level of protection guaranteed to unitholders in these other FIAs or investment funds governed by foreign law is equivalent to that provided for unitholders in a UCITS and, in particular, the rules on asset segregation, borrowing, lending and uncovered sales of transferable securities and money market instruments are equivalent to the requirements of the said Directive;
3° Half-yearly and annual reports on their activities must be produced, enabling an assessment to be made of assets and liabilities, profits and transactions over the period in question;
4° The UCITS, FIAs or investment funds whose acquisition is envisaged may not, under the terms of their rules or articles of association, invest more than 10% of their total assets in the units or shares of other UCITS, FIAs or investment funds.
