To make the integration of liquidity management instruments into collective investment undertakings simpler, the Autorité des Marchés Financiers (AMF) modified its directive DOC-2011-21. Asset management companies will be able to incorporate gates into employee savings plans during the transitional period, which runs from 1 January to 31 December 2024. Investors can be informed in a variety of ways, including the AMC’s website, without needing to be individually notified. The transitional phase will end on December 31, 2024, with the deadlines for updating employee savings providers’ tools to activate gates remaining the same.
See full release below:
The Autorité des Marchés Financiers (AMF) modified its directive DOC-2011-21 in response to steps taken to make it easier for liquidity management instruments to be integrated into collective investment undertakings (CIUs) to account for the unique characteristics of feeder employee savings funds.The beginning of the interim period is modified
To make it simpler for asset management firms (AMCs) to include gates (a mechanism for restricting redemptions) into current employee savings plans, the AMF instituted a transitional period at the end of 2022, lasting from 1 January to 31 December 2024. Investors won’t need to be individually informed at this time, and the integration of gates will be made simpler. Instead, if specific criteria are satisfied, they may be notified by any means, including through the AMC’s website.
The AMF is moving the start of the transitional period forward so that it starts immediately. This will allow existing feeder employee savings funds to deploy gates concurrently with their master fund, which may benefit from a transitional period that has already started.
The transitional phase won’t finish until 31 December 2024.
Deadlines stay the same.
The measures that apply when no gates are introduced, and in particular the information that must be included in the prospectus in such cases, must be put into effect (i) beginning with employee savings funds created after January 1, 2024, and (ii) no later than December 31, 2024, for all other employee savings funds. Therefore, these dates remain the same, which should allow employee savings providers enough time to update their software so that it has capabilities that will enable gates to be activated.https://www.amf-france.org/en/news-publications/news/employee-savings-funds-amf-amends-its-policy-simplified-integration-liquidity-management-tools
of 2022, the AMF introduced a transitional period, running from 1 January to 31 December 2024, to make it easier for asset management companies (AMCs) to integrate gates (a mechanism for capping redemptions) into existing employee savings funds. During this period, the integration of gates will be simplified and investors will not have to be individually notified. Instead, they may be informed by any means, such as on the AMC’s website, provided certain conditions are met.
To allow existing feeder employee savings funds to introduce gates at the same time as their master fund, which can take advantage of a transitional period that has already begun, the AMF is bringing forward the start of the transitional period so that it begins immediately.
The end of the transitional period remains 31 December 2024.
Deadlines remain unchanged
The measures applicable when no gates are introduced, and in particular the information to be included in the prospectus in such cases, must be applied (i) from 1 January 2024 for employee savings funds created after this date and (ii) by 31 December 2024 at the latest for all other employee savings funds. These deadlines are therefore unchanged, and this should give employee savings providers sufficient time to upgrade their tools to include features that will make it possible to activate gates.https://www.amf-france.org/en/news-publications/news/employee-savings-funds-amf-amends-its-policy-simplified-integration-liquidity-management-tools