ACPR: Status, organisation and international cooperation explained

The Autorité de Contrôle Prudentiel et de Résolution (ACPR) is a key player in the French financial landscape. Attached to the Banque de France, this authority oversees the banking and insurance sectors, contributing to financial stability and consumer protection.. Understanding its status, its complex internal organisation and the framework of its international cooperation is essential for professionals and companies interacting with these regulated sectors. This article details these fundamental aspects.  

What is the ACPR and what is its role?

The existence of the ACPR is a response to the profound need to supervise and regulate banking and insurance activities, sectors that are vital to the economy but which carry major systemic risks.. Its creation and current missions are the result of a historical evolution and adaptation to successive financial crises.  

The need for supervision of the banking and insurance sectors

The banking and insurance sectors play a central role in financing the economy and managing risks. However, their intrinsic operation entails risks which, in the event of a crisis, can have considerable repercussions for the entire financial system and the real economy.. The various financial crises have highlighted the need to put in place robust supervisory mechanisms to prevent these risks and protect users - customers, policyholders, members, etc. - from them..  

Historically, supervision of these sectors was fragmented. In the case of banking, the Commission de Contrôle des Banques, set up in 1941, and then the Commission Bancaire under the 1984 Banking Act, were responsible for prudential supervision, while the Comité des Établissements de Crédit et des Entreprises d'Investissement (CECEI) was responsible for authorisation.. In the insurance sector, state control began to develop at the end of the 19th century, leading to the creation of the Autorité de contrôle des assurances et mutuelles (ACAM) to supervise insurance activities and the Comité des entreprises d'assurance (CEA) to grant authorisations..  

Merger of authorities: The birth of the ACPR

The 2008 financial crisis has heightened awareness of the need for a more integrated approach to supervision.. The Deletré report of 2009 recommended merging the various sectoral authorities to create a single body with a global view of risks.. This led to the creation of the Autorité de Contrôle Prudentiel (ACP) on 21 January 2010, resulting from the merger of the CECEI, the Commission bancaire, the CEA and the ACAM..  

This new authority has inherited the powers of its predecessors, particularly in the areas of authorisation and prudential supervision.. Subsequently, in anticipation of the European directive on the recovery and resolution of credit institutions (known as the BRRD), the 2013 law on the separation and regulation of banking activities added an essential mission to the Authority: the resolution of banking crises.. The ACP then became the ACPR, Autorité de Contrôle Prudentiel et de Résolution.. Its resolution powers were subsequently extended to the insurance sector in 2017.. You can find a general presentation of the ACPR on our website.  

General tasks: Financial stability and customer protection

The fundamental missions of the ACPR, defined in Article L. 612-1 of the Monetary and Financial Code, are twofold:

1. Ensuring the stability of the financial system. This implies macroprudential and microprudential supervision of players to prevent systemic risks.  
2. Ensuring the protection of customers, policyholders, members and beneficiaries of the persons subject to its control. This mission covers compliance with the rules of good conduct, the solvency of the entities and their ability to honour their commitments.  

To meet these general objectives, the ACPR carries out a multitude of specific tasks:  

• Examine applications for approval, authorisation or exemption to carry out regulated activities.  
• Ongoing monitoring of the financial position (solvency, liquidity) and operating conditions of controlled entities.  
• Check compliance with customer protection rules (arising from laws, regulations, approved codes of conduct or best practice).  
• Develop and implement measures to prevent and resolve banking and insurance crises.  
• Ensuring compliance with anti-money laundering and combating the financing of terrorism (AML/CFT) rules.  
• Monitor compliance with obligations relating to the fight against tax evasion and information to be provided to the tax authorities.  
• Coordinate its action at European level, in particular within the framework of the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM).  

This list, which is non-exhaustive and evolving, defines the scope of the Authority's action and justifies the extent of its prerogatives. To find out more about powers of the ACPRSee our dedicated article.

The special legal status of the ACPR

Unlike the Autorité des marchés financiers (AMF), the ACPR does not have the status of Independent Administrative Authority (AAI) or Independent Public Authority (API) in the strict sense defined by the 2017 Act.. Its status is described as "sui generis", with a strong link to the Banque de France and no legal personality of its own..  

A "sui generis" authority backed by the Banque de France

The ACPR is intrinsically linked to the Banque de France. The Governor of the Banque de France chairs the ACPR's supervisory board.. The ACPR is staffed mainly by Banque de France employees.. Its budget is a subsidiary budget of that of the Banque de France, although it is partly funded by contributions from the supervised bodies.. This affiliation, consciously chosen by the legislator, aims to achieve synergies and greater effectiveness in terms of financial stability..  

Why isn't the ACPR an AAI or API?

Although initially set up as an AAIThe ACPR lost this status with the 2017 laws on AAIs and APIs.. This downgrading is mainly due to its lack of structural independence from the Banque de France and, to a certain extent, from the Executive.. For example, the Director General of the Treasury, who represents the State, sits on certain committees and has the right to veto certain decisions of the resolution board that may commit public funds.. Furthermore, the ACPR does not have autonomous general regulatory powers, which are mainly vested in the Minister for the Economy..  

Independence and guarantees: a specific balance

Despite its formal exclusion from AAI/API status, the ACPR benefits from guarantees designed to ensure a degree of autonomy and impartiality.. Its members are appointed for a fixed term (five years renewable) and are protected against arbitrary dismissal.. The Authority is not subject to direct ministerial supervision and is not required to take instructions from the Government in the performance of its day-to-day duties.. Strict ethical rules apply to its members to prevent conflicts of interest.. The organic separation between the functions of investigation/prosecution (Supervisory Board/Resolution) and sanctioning (Sanction Commission) is intended to guarantee the impartiality of disciplinary proceedings.. The ACPR therefore appears to be an administrative authority with greater autonomy, although not totally independent..  

Lack of legal personality and consequences

The ACPR, unlike the AMF, has no legal personality.. It is a dismemberment of the State, backed by the Banque de France.. This lack of legal personality has several practical consequences.  

Legal representation and state liability

As the ACPR does not have its own legal personality, it cannot sue or be sued in its own name.. The chairman of the ACPR's supervisory board (the Governor of the Banque de France) is empowered to act on behalf of the ACPR before any court or tribunal within the scope of its remit.. It may also, by decision of the College, bring a civil action for certain financial offences. or appeal to the Conseil d'État against the decisions of the Enforcement Committee.  

With regard to liability, damage caused by a fault of the ACPR in the performance of its duties (for example, a failure in supervision leading to the failure of an institution) does not incur its own liability, but that of the State.. However, the State is only liable in the event of gross negligence, given the nature of the supervisory powers and the discretion left to the Authority..  

The ACPR's internal organisation

The ACPR's organisation is structured to meet its different missions (supervision, resolution, sanctions) while respecting the imperatives of independence and impartiality, in particular through the separation of functions.. It is based on a number of collegiate and individual bodies with distinct powers.  

Overview: Collective and individual bodies

The ACPR's institutional architecture is mainly made up of :

• Three collegiate bodies :
  • The Supervisory Board.  
  • The College of Resolution.  
  • The Enforcement Committee.  
• Key individual bodies :
  • The Chairman of the supervisory board (Governor of the Banque de France).  
  • The Vice-Chairman of the Supervisory Board.  
  • The Secretary General of the ACPR.  
  • The Resolution Director.  

The supervisory board: Composition and executive role

The college of supervisors is the ACPR's main executive body, with authority in principle for all matters not expressly assigned to another body (essentially resolution and sanctions).. It is chaired by the Governor of the Banque de France..  

It has a broad membership (19 members) and aims to ensure plural representation and diversified expertise:  

• The Governor of the Banque de France (Chairman).  
• A Vice-Chairman (an insurance expert) and two other members (experts in customer protection or quantitative techniques).  
• The Chairman of the AMF.  
• Two members appointed by the Presidents of the National Assembly and the Senate.  
• The Chairman of the French Accounting Standards Authority.  
• One member of the Conseil d'État, one member of the Cour de cassation and one member of the Cour des comptes.  
• Four experts from the insurance/mutuality/provident sector.  
• Four experts from the banking/payment services/investment sector.  

Members (excluding those on the Quality) are appointed for renewable five-year terms, with parity rules.. This college decides on the general operating principles and the budget, examines general issues, analyses risks and establishes control priorities..  

Plenary, restricted and sectoral sub-committees

To carry out its tasks, the supervisory board meets in different configurations:  

• Plenary session Board of Directors: Responsible for general matters, organisation, budget, control priorities and the annual report.  
• Restricted formation The Committee is made up of a small number of members. It examines individual issues common to both sectors (banking and insurance), those relating to financial conglomerates, or important individual cases on the decision of the Chairman.  
• Sector sub-committees Two sub-committees (one for banking, chaired by the Governor, and one for insurance, chaired by the Vice-Chairman) deal with general and individual issues specific to their respective sectors.  

Decisions are taken by majority vote, with the Chairman having the casting vote in the event of a tie.. Written or teleconference consultation procedures are available in urgent cases..  

Specialist and advisory committees

The College may delegate certain individual decisions to specialised commissions created within it, but this option has not yet been used.  

On the other hand, several advisory committees have been introduced. They do not have decision-making powers, but advise the College on draft instructions, recommendations or specific issues.. Their membership includes a large number of professionals from the sectors supervised, promoting dialogue and the acceptability of standards.. These include the Consultative Commission on Prudential Affairs, the Consultative Commission on Commercial Practices, the Consultative Commission on LCB-FT, and a Scientific Committee..  

The resolution college: Composition and autonomy

Created in 2013 to manage the new resolution mission, the collège de résolution is the French national resolution authority within the meaning of European law.. It is separate from the supervisory board, although some members also sit on it.. Its membership is smaller (7 members) to encourage responsiveness.:  

• The Governor of the Banque de France (Chairman).  
• The Director General of the Treasury.  
• The Chairman of the AMF.  
• A Deputy Governor of the Banque de France.  
• The President of the Commercial Chamber of the Court of Cassation.  
• The Chairman of the Management Board of the Fonds de Garantie des Dépôts et de Résolution (FGDR).  
• The Vice-Chairman of the Supervisory Board.  

This college enjoys significant structural autonomy within the ACPR, with its own services department and a dedicated section in the ACPR's budget, in order to ensure the independence and effectiveness of the resolution function.. It has exclusive powers to implement resolution measures (sale of assets, bridge institution, internal bail-in, etc.).. It also draws up preventive resolution plans.. The Director General of the Treasury has the right to veto decisions involving public financial support..  

The Enforcement Committee: Independence and disciplinary function

The Enforcement Committee is the body responsible exclusively for imposing administrative sanctions (disciplinary and/or financial) in the event of a breach by an audited entity of its obligations.. It was set up and operates separately from the colleges in order to guarantee the impartiality of law enforcement, in accordance with the requirements of the European Convention on Human Rights..  

It is made up of six members appointed for five years (renewable once): two Councillors of State (including the Chairman of the Commission), one Councillor of the Court of Cassation, and three qualified individuals appointed by the Minister for the Economy.. Alternates are appointed for each member.. The position of member of the Enforcement Committee is strictly incompatible with that of member of the supervisory or resolution colleges.. Proceedings before the Commission are adversarial and respect the rights of the defence.. The ACPR sanctions can be severe, including high financial penalties or withdrawal of approval.  

Role of the General Secretariat and the Resolution Department

Le Secretary General of the ACPRThe Chairman, appointed by ministerial decree on the recommendation of the Governor, heads all of the Authority's departments (with the exception of resolution).. He organises audits, proposes organisational principles and staff code of conduct to the supervisory board, and may receive significant delegations of signature or authority from the Chairman or the board.. He is assisted by a First Deputy General Secretary whose sector expertise must be complementary.  

Le Resolution Directorwho is also appointed by ministerial decree on the recommendation of the Chairman of the College of Resolution, heads the departments specifically dedicated to preparing the work of the College.. In the field of resolution, he exercises powers similar to those of the Secretary General with regard to inspections (except on-site) and hearings, and reports exclusively to the Resolution College, marking the functional separation of this mission..  

Ethical rules: Conflicts of interest and professional secrecy

All members of ACPR bodies (colleges, Enforcement Committee) are subject to strict ethical rules to guarantee their independence and impartiality..  

• Preventing conflicts of interest These include: a ban on being an employee or officer of a supervised entity; an obligation to declare interests held and functions exercised (past and present) to the Chairman of the Board and to the Haute Autorité pour la Transparence de la Vie Publique; an obligation to defer in the event of a direct or indirect interest in a matter; placing financial instruments held in supervised sectors under a management mandate with no right of inspection. The internal regulations set out these obligations in detail.  
• Professional secrecy Confidentiality: Members and staff are bound by professional secrecy with regard to information gathered in the course of their duties, subject to criminal penalties. However, this secrecy does not apply to the judicial authorities (in certain cases) or to parliamentary committees of enquiry, and there are exemptions for cooperation with other authorities.  

Compliance with these rules is monitored by the chairman of the supervisory board (or the dean of magistrates in the case of the chairman himself) and any breach may result in the termination of the duties of the member concerned..  

ACPR cooperation at international level

In a globalised financial environment, the ACPR cannot act in isolation. It actively participates in cooperation with its foreign counterparts, both at European and international level, for the exchange of information, the coordination of surveillance and mutual assistance in matters of control..  

Integration into the European surveillance system (SESF)

The ACPR is a key component of the European System of Financial Supervision (ESFS), set up in 2011.. This system aims to harmonise supervisory practices within the EU, preserve financial stability and protect consumers.. It includes :  

• The European Systemic Risk Board (ESRB).
• The three European Supervisory Authorities (ESAs): the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA).  
• The relevant national authorities, such as the ACPR and AMF in France.  

The ACPR works closely with these European bodies, exchanging information (including information covered by professional secrecy) and participating in joint projects.. It plays a key role in the implementation of European frameworks such as the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM) for banking, acting as the national supervisory and resolution authority..  

Cooperation with counterpart authorities in the EEA

Within the European Economic Area (EEA), cooperation between supervisory authorities is governed by European directives (such as CRD IV for banking and Solvency II for insurance).. These texts directly set out the procedures for exchanging information and coordinating the supervision of cross-border groups, without systematically requiring specific bilateral agreements.. The ACPR participates in the colleges of supervisors for banking and insurance groups with significant activities in France or whose parent company is French.  

Non-EEA cooperation: Bilateral and multilateral agreements

For cooperation with authorities in countries outside the EEA, the ACPR relies on bilateral or multilateral cooperation agreements.. These agreements make it possible to derogate from the French "blocking" law (Law no. 68-678 of 26 July 1968), which in principle prohibits the communication of sensitive information to foreign authorities..  

Exchange of information and blocking legislation

Article L. 632-7 of the Monetary and Financial Code authorises the ACPR (and the AMF) to enter into cooperation agreements with counterpart authorities in third countries to exchange information necessary for the performance of their respective duties.. These agreements may also be concluded with authorities that are not counterparts but are involved in supervising the sector (e.g. audit authorities)..  

The transmission of information by the ACPR is subject to the existence of sufficient guarantees of professional secrecy in the third country, at least equivalent to those provided in France.. The exchange must be strictly limited to the needs of the requesting authority and must not constitute an indiscriminate search for information ("fishing").. The transfer of personal data must also comply with the RGPD (General Data Protection Regulation)..  

Regarding the receipt of information from abroad, case law has clarified that the ACPR (or the AMF) may request information from foreign authorities even in the absence of formal agreement, as the Blocking Statute only applies to the transmission of information. to Abroad.  

Mutual assistance in control and evidence

Cooperation can go beyond the simple exchange of information. Agreements may provide for mutual assistance in the area of supervision, enabling the ACPR, for example, to ask a foreign authority to carry out inspections on a local subsidiary or branch of a French group, or vice versa.. The extension of foreign supervision into France is, however, subject to certain restrictions, in particular compliance with the prudential standards of the home country for the supervision of groups..  

Mutual assistance may also involve obtaining evidence in the context of investigations or disciplinary proceedings (documents seized, hearings).. In principle, evidence obtained abroad is admissible, even if it has been gathered in accordance with the procedures of the foreign authority.. However, their use in France must comply with fundamental French principles, in particular fairness of evidence and the rights of the defence.. If evidence has been obtained abroad in breach of these principles (for example, a hearing under threat of criminal sanctions contrary to the right not to incriminate oneself), it must be set aside by the ACPR..  

The ACPR has signed numerous bilateral agreements (with the United States, Switzerland, Canada, Japan, Morocco, etc.) and participates in multilateral agreements, notably within the framework of the International Association of Insurance Supervisors (IAIS)..  

The challenges posed by financial and insurance regulation require constant vigilance and ongoing adaptation by the supervisory authorities. The ACPR's status and organisation, as well as its ability to cooperate effectively internationally, are crucial to its mission. If you are faced with a procedure initiated by the ACPR, or if you have any questions about the regulations applicable to your business, a member of the ACPR can help you. banking lawyer can provide you with insight and support in dealing with the ACPR.

For an in-depth analysis of your situation and tailored advice, contact our team of lawyers.

Sources

• Monetary and Financial Code (main articles cited in the text)
• Insurance Code (main articles cited in the text)
• Code de la mutualité (main articles cited in the text)
• Social Security Code (main articles cited in the text)
• Council Regulation (EU) No 1024/2013 of 15 October 2013 entrusting the European Central Bank with specific tasks concerning policies relating to the prudential supervision of credit institutions (MSU)  
• Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014 establishing uniform rules and procedure for the resolution of credit institutions and certain investment firms under a Single Resolution Mechanism and a Single Resolution Fund (SRM)  
• Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms (BRRD)
• Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II)