Section III: Own funds

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Article R351-20

French Insurance CodeIn force
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Updated 7 Nov 2023

The amounts of ancillary own funds items to be taken into account to determine prudential own funds within the meaning of Article L. 351-6 are subject to the prior approval of the Autorité de contrôle prudentiel et de résolution.

The amount allocated to each item of ancillary own funds reflects the loss-absorbing capacity of the item concerned and is based on prudent and realistic assumptions. Where a fixed nominal value is attached to an ancillary own-fund item, the amount of that item shall be equal to its nominal value, provided that this adequately reflects its loss-absorbing capacity.

The Autorité de contrôle prudentiel et de résolution shall approve either of the following:

a) A monetary amount for each ancillary own-fund item;

b) A method for calculating the amount of each ancillary own-fund item. In this case, the Authority's approval of the amount so calculated shall be given for a specified period.

For each ancillary own-fund item, the Authority shall base its approval on an assessment of the following elements:

a) The status of the counterparties concerned, having regard to their ability and willingness to pay. The status of counterparties is specified in Article 63 of Commission Delegated Regulation (EU) No 2015/35 of 10 October 2014;

b) The recoverability of funds, taking into account the legal form of the relevant item and any circumstances that may prevent it from being successfully paid or called. Funds shall be recovered in accordance with the procedures laid down in Article 64 of the Regulation;

c) any information on the outcome of past calls made by the undertaking for similar ancillary own funds, to the extent that such information can reasonably be used to estimate the expected outcome of future calls.

Details of this information are given in Article 65 of the same Regulation.

The procedures for requesting approval of ancillary own funds are defined in Article 62 of the same Regulation.

The procedures for validating the amount of ancillary own funds, as well as the duration of recognition of this amount, are defined in Article 66 of the same Regulation.

Mariela Petrova

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Working with a corporate lawyer in France — Q&A

Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

Yes — most of our clients are foreign suppliers, investors or holding entities. We bridge the gap between French law and your home jurisdiction's expectations and deliver everything bilingually.

The SAS (Société par Actions Simplifiée) is the default choice for most international structures: flexible governance, single shareholder allowed, no minimum capital, and works cleanly with foreign holding entities. We assess SARL, SA, SCI on the merits when the situation calls for it.

Yes — communications with a French avocat are protected by the secret professionnel (Article 66-5 of the Law of 31 December 1971). This protection is broader than the common-law attorney-client privilege and applies to written and oral exchanges.

We work on fixed fees for clearly scoped engagements (incorporation, contract drafting, audits) and on monthly retainers for ongoing advisory. Hourly billing is the exception, not the default. You always know the cost before work starts.

Typical timeline is 2–3 weeks from KYC kick-off to RCS registration, assuming standard documentation. Holding-company structures, foreign-shareholder identification or in-kind contributions can extend this — we flag the gating items at the first meeting.

Absolutely. We routinely coordinate with your in-house counsel, expert-comptable or notaire — pragmatic collaboration is the norm, not the exception. We send them everything they need to do their part without duplicating work.

Mariela Petrova

Mariela Petrova

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15+ Years In Corporate Practice

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Communications protected by professional secrecy — secret professionnel de l'avocat, Article 66-5 of the Law of 31 December 1971.

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