Cob is a French securities regulator and an independent administrative unit. Cob Asset Management Supervision Department is responsible for establishing corresponding legal framework, supervising asset management companies and issuing cis licenses. Cob is responsible for protecting French investors and enforcing the law, and imposing administrative penalties on those who violate the law.
The French Financial Asset Management Association was established in 196 1. It is a self-regulatory organization of the French fund industry and has formulated some professional ethics and trade conventions to regulate related business activities. All asset (fund) management companies must join the association and abide by its rules, regulations and business guidelines.
In July 2000, the French Ministry of Finance announced its plan to strengthen the supervision of the French capital market, especially to integrate the two major market supervision institutions: the Securities and Exchange Commission (cob) and the Financial Markets Commission (cmf). The relevant bill will be discussed in Congress this autumn, and it is estimated that it will not be implemented before 2003.
Cob classified management asset management company: a kind of fund management company that specializes in managing securities investment funds (ucits); The other kind can manage all types of assets (including ucits), which is called securities asset management company. These two types of management companies must abide by the same laws and regulations.
Asset management business must abide by strict rules and regulations to ensure market transparency and protect investors. The main measures are as follows:
L strict investment restrictions: it is divided into qualitative restrictions on the types of securities that securities investment funds can invest in and quantitative restrictions aimed at diversifying risks.
Independence of fund custodian and asset management company. French regulatory agency (cob) has made strict regulations on the responsibilities and obligations of custodians. The custodian is responsible for ensuring that the fund complies with applicable laws and regulations. The qualification of the custodian shall be approved by the Ministry of Finance. The custodian shall be jointly and severally liable to the third party and the fund holder because the fund violates the articles of association, laws and regulations and management mistakes.
L administrative supervision of management institutions. Before issuing fund units to the public, Sicav and fcp funds must be approved by cob. Cob will carefully review the adequacy of resources, the professional experience of senior management and the quality of information provided before deciding whether to approve or not. In addition, cob is also responsible for the daily supervision of securities investment funds, which can be divided into field visits to management companies, regular review of their portfolios, and verification (verification) of their regular reports and marketing materials provided to investors.
Industry insiders play an important role in the supervision process. They actively participate in the Asset Management Advisory Committee and the Asset Management Disciplinary Committee. The Disciplinary Committee is composed of professionals in the asset management industry and is responsible for investigating violations of professional ethics and other rules of the industry. It can punish those who violate professional ethics and any laws and regulations concerning funds, including warnings, fines and suspension of qualifications. 3.2. 1 business license
Cob is responsible for issuing licenses for securities asset management companies and fund management companies, and approving asset management business licenses. Securities asset management companies and fund management companies must be joint-stock companies with sufficient funds and two managers with necessary business experience. Its chairman cannot be the chairman of the fund custodian, and must provide the identity of the inspector and internal controller. The application for business license shall be handled within three months after receiving the materials. Before approving a securities asset management company, the CSRC shall review the following matters:
-Office space of the company's headquarters (in France);
-An appropriate amount of seed capital;
-Identity and status of shareholders;
-Integrity and experience of senior managers;
-At least two people are responsible for making the overall plan of the company;
-An appropriate legal framework (such as internal business rules and procedures);
-Business plan corresponding to each service provided.
According to cob regulations, the minimum capital is 500,000 French francs, or 25% of the management expenses in the profit and loss account of the previous year or previous years.
Separation of customer assets
The customer's assets must be managed separately from the assets of the asset management company and deposited in an independent credit institution. In entrusted asset management, it is mandatory to strictly separate customers' cash from securities.
The assets of the fund are kept by the custodian. 1988 Fund Law stipulates this requirement. 1993, cob formulated the regulations on the management of the functions of securities investment fund custodians.
information disclosure
Asset management companies must regularly provide customers with detailed reports on the value and composition of securities portfolios.
enforce the law
According to the law of1August 2, 989, cob has the right to impose administrative penalties on violations of laws and regulations. When the Competition Commission finds violations, the violator may be fined as high as 654.38+million French francs, or 654.38+00 times its profit. The amount of the fine depends on the severity of the violation and is proportional to the profit. The punishment procedure is open, and the punishment decision can be appealed to the court.
Cob has the right to revoke its business license if the company no longer meets the relevant requirements.
audit
Asset management companies must submit audit reports. Auditors must report to cob when investigating the abnormal situation found by the company. Similarly, the above anomalies must also be told to the company's top management.
compensate
There are no special compensation arrangements for customers of asset management companies.
complain
Cob receives about 2500 complaints every year, most of which have nothing to do with asset management. If the complaint evidence is sufficient, cob will take four actions according to the situation: fine; If the crime of fraud is committed, it will be handed over to the procuratorate; If it is proved that compensation should be paid, it will be handed over to the civil court; Or mediate disputes amicably.
manage
Cob's monitoring work aims to detect all behaviors that may endanger the safety of investors. Cob requires asset management companies to appoint an inspector and a person in charge of internal control to ensure that the company complies with all laws and regulations.
Cob chairman has the right to order an investigation anytime and anywhere. This kind of investigation is generally caused by problems or complaints found in the process of market supervision and company business tracking. Cob investigators have the following powers:
-Access to any commercial office;
-Obtain all documents and make a copy;
-Summon and meet anyone who may provide information.