This educational document highlights the deviations observed from current regulations and reiterates the authorities' points of attention. Its aim is to improve the distribution practices for financial instruments and life insurance contracts.
The two authorities have analyzed about sixty controls carried out during the 2020-2024 period. The objective is to support the implementation of European directives on insurance distribution and financial markets, which enhance customer protection.
The joint AMF-ACPR unit draws particular attention to three key areas:
Product governance: some professionals define target markets too generically, insufficiently distinguishing between negative target markets (investor profiles to whom the product is not intended) and marketing outside of this target market.
Advice: standardized recommendations, unsuitable for clients' individual situations and sometimes inadequate for their needs, are noted due to insufficient client information gathering.
Remuneration and conflicts of interest: the management of identified conflicts of interest has proven insufficient in some controls, particularly those related to links between distributors and their partners. These situations must be mapped and subject to preventive actions. Distribution under an open architecture is likely to contribute to the best interests of investors.
This report is part of the work aimed at strengthening the retail investment strategy.
