The last months have been marked by a new law modifying and dusting off the law 1338 on financial activities voted in 2007. Magali VERCESI, Secretary General of the CCAF, details its effects.
What are the main changes brought about by this law?
Law 1515 concerns the activities subject to the supervision of the CCAF, introducing changes to the nature of the approvals and to the role and functioning of the Commission. It strengthens the independence of the Commission, while increasing its investigative powers.
The new text clarifies our competence to modify and revoke authorizations, to supervise the activities of custody or administration of financial instruments, to protect and inform investors. It is also mentioned that the CCAF participates in the proper functioning of the financial markets through the agreements concluded with foreign authorities. The new text clarifies the purpose of the controls carried out by the CCAF and its role in investigations at the request of foreign authorities.
For example, it is now possible for us to investigate unlicensed companies if certain market transactions attract the attention of regulators.
And what about approval procedures?
They have also changed: the incompatibility that existed between the activities of management of funds under Monegasque law and the reception and transmission of orders, the execution of orders on behalf of third parties and trading for own account has been removed. The condition of sufficient financial guarantee has been specified.
The time limits for the processing of approval files have also been modified ?
The time limit for the processing of an approval file by the CCAF remains 6 months for a complete file. But from now on, it expires on the date on which the CCAF decides on the file, and no longer on the date on which the CCAF informs the company. In addition, in case of modification of one or several characteristic elements of the approval file, a prior authorization of the CCAF is now required instead of a communication without delay previously.
Are there any changes in terms of withdrawal of approval?
We no longer speak of withdrawal, but of revocation of accreditation; understood in the broadest sense, this also covers withdrawals outside the sanction procedure. I would like to point out that in 2021, we approved three companies, and 4 in the first half of 2022, which is a sign of the good health of the market.
The CCAF wishes to join the International Organization of Securities Commissions (IOSCO)
CCAF has been an associate member of IOSCO since 2018. The process of obtaining ordinary membership is ongoing. The passage of the new law has allowed us to resume the membership procedure, which requires the signing of a multilateral cooperation agreement, hence the expansion of our investigative powers. We hope to obtain ordinary membership in 2022, or at the latest in 2023.
