The independence of financial analysts contributes to market integrity and hence to the confidence of both individual and professional investors. It is therefore important for the French financial and banking community to stress the quality of France’s regulations in this area, a fact that investors – and particularly foreign investors – often overlook.
The AFEI/FBF Code collates and standardises practices that are already well established in French banks and investment firms. It lays down rules for detecting, preventing and dealing with potential conflicts of interest faced by financial analysts. The aim is to enhance transparency by making the rules readily accessible to all interested parties, notably investors.
The AFEI/FBF Code also reflects recent developments in European regulations. It incorporates the latest measures contained in the directive on insider dealing and market manipulation and its implementing directive on the fair presentation of investment recommendations and the disclosure of conflicts of interest. Both directives will shortly be transposed into French law.
To read the Code, appendix and glossary, see below
AFEI – FBF – Code of conduct on managing conflicts of interest in the field of investment research 2004