FRANCE Law and Practice Contributed by: Hubert de Vauplane and Hugo Bordet, Morgan Lewis & Bockius LLP
or services. Customers must be provided with clear, accurate and non-misleading information at any time, whether such information is pro - vided through a financial entity’s own website or through other media. Regarding social media, rules relating to the distribution of regulated ser - vices apply regardless of the channel used for such distribution, as reiterated in 2016 by the AMF (through the updates of several position statements relating to the marketing and dis - tribution of financial products) and the ACPR (through a recommendation on the use of social networks for commercial purposes). Conse - quently, close attention should be paid to the content of information posted on social media, as it is by nature likely to reach non-professional customers. The role of influencers in the marketing of finan - cial products or investments is closely monitored by the authorities. In July 2022, the AMF and the advertising regulatory authority announced that they would include digital assets in their joint monitoring of advertising on financial products, and start focusing on influencers. In Decem - ber 2022, the Ministry of Economy launched a national consultation on the regulation and supervision of influencers. In June 2023, the French Parliament adopted an Act aiming to regulate commercial influence and combat the abuses of influencers on social media, including provisions prohibiting, under penalty of up to two years of imprisonment and a fine of EUR300,000, the direct or indirect promo - tion of financial products and services by influ - encers, except in certain cases. The prohibited products and services include: • financial contracts; • digital asset services, unless the provider is registered or licensed by the AMF; and
• ICOs, unless the advertiser has obtained an authorisation for the issuance of crypto- assets. As it stands, influencers are prohibited from promoting digital asset-related products and services for remuneration unless the provider is duly registered or licensed as a DASP and unless they specifically mention the risks asso - ciated with crypto-assets to their audience. This regulatory framework is expected to evolve in alignment with MiCAR. 2.12 Review of Industry Participants by Parties Other than Regulators The appointment of an external auditor ( com- missaire aux comptes ) is mandatory for all joint- stock companies ( sociétés anonymes ) and most simplified joint-stock companies ( sociétés par actions simplifiées ), as soon as they exceed cer - tain size thresholds. In addition, appointing an accounting firm is mandatory for all companies which carry out a regulated activity. Regulated entities are subject to strict moni - toring and supervision rules. In order to obtain approval from the ACPR, for example, regu - lated entities must define a comprehensive internal compliance policy. The supervision is both internal and external: compliance with the relevant rules is internally monitored by certain employees of the entity, while external consult - ants periodically audit and review its compliance procedures. Therefore, part of the supervision of regulated entities is, in practice, outsourced to external consultants. Fintech companies that provide regulated ser - vices must also comply with regulatory require - ments. They tend to outsource most of their compliance processes in order to focus on technology and the core business. When fintech
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