AMF and ACPR: the guardians of French crowdfunding

Two complementary regulators for a rapidly changing sector

In France, the supervision of crowdfunding is based on two complementary authorities: theFinancial Market Authority (AMF) And thePrudential Control and Resolution Authority (ACPR). Together, they form the supervisory system that oversees the activity of crowdfunding platforms on the national territory.

With the implementation of the European PSFP regulation, the role of these two institutions has evolved. Understanding their respective missions is essential for any platform that wants to operate in compliance.

The AMF: the approval authority for PSFP platforms

The Autorité des Marches Financiers is thecompetent authority appointed by France to approve crowdfunding service providers under the PSFP regulation. As such, the AMF:

• Instruct them PSFP certification applications and verifies the conformity of the files
• Examine the solidity of business continuity plan, including the fire management component
• Hold it register of approved platforms searchable by the public
• Check compliance with information obligations towards investors
• Can pronounce administrative sanctions In the event of a breach

The AMF pays particular attention to the quality of the extinctive management plan presented by candidates for approval. An insufficiently detailed or untested plan may be a reason for refusal.

The ACPR: prudential supervision

The Prudential Control and Resolution Authority, backed by the Banque de France, intervenes on prudential and anti-money laundering aspects. In the context of crowdfunding, the ACPR:

• Supervise the payment institutions used by platforms for financial flows
• Checks compliance with the obligations of fight against money laundering and terrorist financing (LCB-FT)
• Verify process compliance KYC (Know Your Customer) set up
• Intervenes in coordination with the AMF during joint inspections

The specific requirements related to the PSFP

The continuity plan under the microscope

French regulators apply a rigorous approach in evaluating continuity plans. They expect platforms to demonstrate not only the existence of a plan, but especially its operational viability. Bi-annual migration tests and annual audits are tangible proof of this viability.

On-site and workpiece checks

The AMF may conduct inspections at any time. These checks relate in particular to the reality of the extinctive management system: is the identified service provider still operational? Are migration tests done? Are the reports documented?

The sanctions regime

Penalties for non-compliance can be severe: warning, reprimand, temporary ban on activity, financial penalty which can reach several million euros, or even withdrawal of approval. The AMF sanctions committee has repeatedly demonstrated its firmness towards defaulting actors.

How do you prepare for regulatory checks?

For platforms, the best preparation for controls lies in ongoing documentation of their compliance. Concretely, it is recommended to:

• Keep all of the migration test reports with associated action plans
• Documenting the annual audits of loan contracts
• Keep the contract with the fire management provider
• Have a PSFP compliance file complete and up to date

By relying on a service provider like Runoff, the platforms have structured documentation and a credible interlocutor to present to regulators. Capsens' expertise in regulatory compliance in fintech is an additional guarantee of seriousness.

Faced with demanding regulators, compliance cannot be improvised. It is built methodically, test after test, audit after audit.