An Autorité de marchés financiers working group recently published a report containing 21 recommendations to amend regulations on notification of crossing shareholding thresholds and statements of intent. It suggests changes to certain thresholds and deadlines, and assimilation of securities which the shareholder has the right to acquire by virtue of a financial instrument for threshold calculation.
An ordinance of October 15 2005 has created a new type of fund devoted to real estate investments, in order to encourage domestic investment in the French real estate market and to maintain current growth rates in pension savings. The new funds essentially consist of privately held funds invested in real property, shares of real estate companies and liquid investments.
The Financial Security Act has amended Section L 228-97 of the Commercial Code to enable French companies to issue super-subordinated notes. The Banking Commission recently acknowledged that super-subordinated notes may now be included within tier one capital instruments, subject to certain conditions.
The securitization of future receivables is considered an efficient leverage tool for companies. However, recent and controversial case law has threatened the legality of the securitization of future receivables.
Weather derivatives are a new way of insuring against the weather. They do not specialize in protection against violent storms or floods, but rather the effect of ordinary weather conditions, showing the difference that a sunny day can make to a company’s profits.
Legislation on securitization has recently been amended. The new law now prevents new issuers from being penalized and allows a fund to assign any receivable which becomes mature or for which the maturity has been accelerated.