The Autorité des marchés financiers (AMF) published its annual statement of priorities for the regulator’s 2021-2022 fiscal year on June 11, to inform the industry and the general public about key initiatives being undertaken by the regulator to implement its strategic plan.
The consumer experience, awareness about the AMF’s consumer services, oversight of the insurance industry, the fair treatment of clients, crypto-assets, artificial intelligence and environmental, social and governance (ESG) issues are all on the list in the AMF’s 2021-2022 Annual Statement of Priorities. “The AMF also wishes to increase its efforts to minimize the compliance burden of its regulated clienteles and will be soliciting input from industry stakeholders on tangible improvements that could be made,” they write.
In addition to streamlining access to its assistance services, the AMF is also evaluating the possibility of providing an online mediation solution for consumers and the industry. It also intends to publish a draft regulation regarding complaint handling and dispute resolution during the year.
In insurance, they say “as part of its oversight activities the AMF will continue to conduct cross-sectional analysis on targeted issues in order to develop an overall picture of current practices in the insurance industry. Broadly, its monitoring activities will be extended to include analyzing new financial products or business models, understanding how they work and (any) potential issues with them.”
They add that the AMF has noted that incentive practices have emerged as a source of conflicts of interest that are potentially detrimental to the fair treatment of clients. “The AMF therefore intends to implement a specific framework setting out its expectations in this matter.”
Operationally, the regulator says it will also continue to prioritize the development of technology tools that increase its ability to detect, investigation and seek sanctions “in an increasingly virtual environment that is conducive to fraud.”
The AMF says it will also continue to work with other regulators regarding cost disclosure for segregated funds, it intends to publish an issues paper on the development of connected and automated vehicles, and says it intends to provide thought and action leadership regarding the impact of climate change on the financial system and the incorporation of ESG issues into financial activities and decisions.
“This initiative is being undertaken amid a climate emergency and accelerating transition of capital toward a net-zero economy and a growing offering of green or sustainable financial products,” they write, regarding the regulator’s ESG focus. “Specifically, the AMF will step up its involvement in initiatives to develop the regulatory framework and guidelines required to align financial sector regulation with international principles in this area.”
