Export of company mutual investment funds

Export of company mutual investment funds

Export of company mutual investment funds

As of 3rd January 2018, foreign law firms and French companies belonging to a foreign group, which has several employees working in foreign subsidiaries, under a foreign law contract, will be able to create mutual international investment funds for employees in foreign companies.

These international funds are aimed at: 

  • Foreign companies and subsidiaries of the same group within the same consolidation perimeter. Securities registered in mutual investment fund assets will be those of the foreign company or foreign affiliate concerned;
  • French companies belonging to a foreign group that have established strong and stable economic and financial links between the companies. Employees working in the foreign companies of the group will have access to mutual investment funds through a company savings plan established by way of an agreement made in accordance with their national legal rights. 

These international funds will be subject not only to the regulations applicable to employee savings funds, but also to several provisions specific to funds, a third of which are invested in corporate securities, above all concerning the composition and designation of the members of the supervisory board of the fund. 

The methods of evaluation of the fund’s assets will vary depending on whether or not the securities are listed on a European trading platform, or that of a third country recognised as equivalent : 

  • For shares taken into consideration in the negotiation, the method chosen will be that of the stock exchange price for the shares, and the market value for bonds ;
  • For securities not taken into consideration in the negotiation, an objective method, taking into account the net accounting situation, the profitability and the prospects of the company, will apply to the shares, and the bonds will be valued at their nominal value increased by the coupon accrued.

A decree is expected soon to complete this measure. 

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