FRANCE Law and Practice Contributed by: Damien Luqué, Martin Jarrige de la Sizeranne and Sacha Tartarin, Lacourte Raquin Tatar
11. Horizon Scanning 11.1 Regulatory Developments National Developments
3 November 2014 regarding internal control. In addition, the ACPR implemented the EBA’s Guidelines on ICT and security risk management (EBA/GL/2019/04). Pursuant to French regulatory provisions, French credit institutions must: • put in place adequate internal governance and internal control systems on ICT and security risks; • have qualified staff to support their ICT and security risk management; and • have risk-mitigating measures in place related to the outsourcing of ICT services. Regarding DORA, the implementation works of the Directive has already started, which namely involve the ACPR and the AMF, as well as the French Cybersecurity Agency ( Agence nation - ale de la sécurité des systèmes d’information – ANSSI) and the French Data Protection Authority ( Commission nationale de l’informatique et des libertés – CNIL). The AMF has already issued several publications since 2019 on cybersecurity focused on portfo - lio management companies as part of its the - matic controls (“SPOT” controls). As specified in a press release published in February 2024, the AMF recommends that financial institutions, such as credit institutions, take cognisance of the recommendations set out in these publica - tions in order to anticipate the implementation of DORA. Additionally, the ACPR has already added an appendix dedicated to ICT-related risks to its annual internal control report’s template. Credit institutions are expected to send to the ACPR this appendix for the first time by 30 June 2025.
The main upcoming regulatory developments expected to have an impact on banks operating in France are the following. • French Law No 2024-537 of 13 June 2024 aiming to increase the financing of companies and the attractiveness of France as a place in which to do business introduced a provision allowing the limitation of termination indemni - ties for traders qualified as MRTs. In practice, for all terminations occurring after 15 June 2024, the monthly remuneration taken into account for calculating compensation and indemnities for the termination of a contract of employment without real and serious cause may not exceed a maximum amount set by law. • On 8 April 2024, a law proposal was submit - ted to the French Senate to prevent abu - sive bank account closures. Currently, a credit institution is free to close a customer’s deposit account if it has been established for an indefinite period. The legislation only requires two months’ notice before the effec - tive closure. Since a credit institution does not have to justify the closure, the customer is exposed to the risk of having their account arbitrarily closed. The initial proposal states that the credit institution must provide the customer, upon its request and free of charge, with the reasons for such termination. • Regarding the ACPR, a new online portal will soon be introduced by the end of 2024 enabling communication between the regu - lator and supervised entities. This new tool aims to centralise all requests and exchanges with the ACPR within a single portal, such as
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