French Monetary and Financial Code
In forceAfter reporting to the Autorité des marchés financiers and to the tax department with which its management company files its income tax return, an innovation mutual fund may enter into a pre-liquidation period:
1° From the start of the financial year following the end of its fifth financial year if, since the end of a subscription period of no more than eighteen months immediately following the date on which it was set up, no units have been subscribed other than those subscribed by unitholders who subscribed during the aforementioned eighteen-month period:
a) To enable it to reinvest in units, shares, redeemable bonds, convertible bonds or profit-sharing securities, as well as in current account advances in companies which are not admitted to trading on a financial instruments market within the meaning of I of Article L. 214-28 or in entities mentioned in 2° of II of Article L. 214-28 whose securities or rights are included in its assets; or
b) To meet the reinvestment obligation set out in article 163 quinquies B of the General Tax Code;
2° From the start of the financial year following the end of the fifth financial year after that in which the last subscriptions were made, in all other cases.
As from the financial year during which the declaration referred to in the first paragraph is filed, the 60% quota set out in I of article L. 214-30 may not be complied with.
