France is home to one of Europe’s most dynamic and rewarding forex markets. As well, its is also one of the most conservative and highly regulated markets. The regulatory agency which governs these lucrative markets is the Autorité des marchés financiers (AMF) which translates to “Financial Markets Regulator”. This regulatory agency is known to be one of the strictest and most stringent regulators in all of Europe. Therefore, if a brokerage becomes regulated by them, traders can rest assured the broker will provide reputable trading services.show more
The AMF was established in 2003 and is the independent regulatory body responsible for the protection of investors and the financial investments offered to them. As well, the agency maintains the orderliness of the financial markets in France. The regulatory agency was formed from the merging of the Commission des opérations de bourse (COB), the Conseil des marchés financiers (CMF) and the Conseil de discipline de la gestion financière (CDGF). The AMF now has a staff of around 450 people and is financially independent due to the fees imposed on firms regulated by them. Though the AMF only regulates financial markets and brokers based out of France, they work closely with European and International regulatory bodies, as well as with professionals, lawyers, academics, and investors to provide the best parameters for financial regulations in France.
The AMF is the sole regulator of the financial markets in France and thus has numerous responsibilities for protecting investors and maintaining integrity in the markets. See below the key responsibilities of the AMF.
They ensure investors receive true and transparent information on investments.
They create and enforce a list of rules and guidelines for brokers to follow.
They license and authorize participants in the financial markets.
They conduct investigations on fraudulent brokerages.
They offer investors a form of mediation service.
They monitor and supervise brokers and the investment services and products they provide.
One of the reasons France has such a thriving financial trading industry, is because of how safe and secure the trading brokerages in France are. The AMF regulation protects investors by ensuring all the brokerages operating in their jurisdiction are fully regulated by them, thus ensuring their reliability for providing investment services. Also, the AMF informs investors with useful information about various investment products and best practices. As well, they publish warnings about fraudulent brokers and things to look out for.
AMF regulated brokers must follow strict guidelines to maintain regulation and continue their services. For instance, all AMF regulated brokers must undergo periodic financial audits by a reputable third party. As well, they must submit reports on their investment products and services to the AMF. Additionally, all AMF regulated brokers must hold their client’s funds in segregated French bank accounts. Of course, there are various other rules in which brokers must obey and follow as well.