French Monetary and Financial Code
In forceBy way of derogation from I and II of article R. 214-32-29, corporate mutual funds may hold, without limitation, transferable securities issued by the company or by a company belonging to the same group within the meaning of I of article L. 214-165-1.
These funds may not hold more than 10% of the financial instruments with voting rights of any single issuer other than the companies mentioned in the previous paragraph.
Notwithstanding the provisions of II of article R. 214-32-35 and those of the previous paragraph, these funds may hold more than 10% of the securities issued by the company or by any company belonging to the same group within the meaning of I of article L. 214-165-1.
The cumulative amount of liquid assets recorded at the time of each net asset value calculation for the current year may not exceed one-fifth of the sum of net assets for the same period. The AMF Board may decide to make exceptional exceptions to this rule.
When the proportion of a fund's assets invested in securities of the company or of any company belonging to the same group within the meaning of Article L. 214-165-1 falls below one-third, the fund management company's priority objective in its securities purchase and sale transactions is to rectify this situation as quickly as possible, while taking into account the interests of unitholders.
