The Autorité de Contrôle Prudentiel et de Résolution, better known by its acronym ACPR, is a key institution in the French financial landscape. Whether you are a bank customer, an insurance policyholder or the director of a financial institution, understanding its role and missions is essential. This article summarises the key points concerning this authority, its organisation, its powers and the situations in which the intervention of a lawyer may be appropriate.
What is the ACPR?
A key supervisory authority for banking and insurance
The ACPR is the French body responsible for supervising the banking and insurance sectors.. Its primary mission is twofold: to preserve the stability of the financial system and to ensure the protection of customers, policyholders, members and beneficiaries of the services offered by the bodies subject to its supervision.. It is not a regulatory authority in the strict sense, as it does not have general regulatory powers like the Autorité des marchés financiers (AMF).. Its role is above all to supervise, i.e. to control the application of existing rules..
Its origins: Fusion for a global vision
The ACPR was created in 2010 from the merger of several pre-existing licensing and supervisory authorities in the banking and insurance sectors.. Prior to its creation, supervision was fragmented: the Commission bancaire and the Comité des établissements de crédit et des entreprises d'investissement (CECEI) for banking, the Autorité de contrôle des assurances et des mutuelles (ACAM) and the Comité des entreprises d'assurance (CEA) for insurance.. The 2008 financial crisis highlighted the need for a more integrated approach, leading to the creation of the Autorité de Contrôle Prudentiel (ACP).. In 2013, its powers were extended to include the resolution of banking crises, and it became the ACPR..
A special status: Attached to the Banque de France
The ACPR has "sui generis" status. It is backed by the Banque de France, which means that it works in close collaboration with it, sharing resources and staff.. The Governor of the Banque de France chairs the ACPR's supervisory board.. Although it was initially considered an Independent Administrative Authority (AAI), it lost this formal status in 2017.. However, it retains broad functional and decision-making autonomy.. The ACPR has no legal personality of its own; it is the State that is liable in the event of gross negligence on the part of the Authority in the performance of its duties.. You can find more details of the ACPR's status and organisation.
What are the ACPR's main tasks?
The ACPR's remit, defined primarily in Article L. 612-1 of the Monetary and Financial Code, is vast and covers the entire life cycle of the institutions under its supervision..
Ensuring the stability of the financial system
This is the ACPR's primary and cross-cutting objective. All of its actions, from authorisation to resolution, are aimed at preventing crises and maintaining the soundness of the banking and insurance sectors, which are essential to the smooth functioning of the economy..
Protecting customers, policyholders and members
The ACPR protects consumers of financial and insurance products and services. It ensures that establishments comply with the rules of good conduct, fair commercial practices and provisions designed to protect customers.. It may issue recommendations or approve professional codes of conduct..
Checking compliance with regulations
The AMF ensures that the entities it supervises comply with all applicable national and European laws and regulations.. This includes the Monetary and Financial Code, the Insurance Code, the Mutual Insurance Code and the Social Security Code for certain activities, as well as directly applicable European regulations..
Licensing (banking, insurance, certain financial services)
Access to banking, financial (for certain services) and insurance activities is subject to authorisation from the ACPR (or the ECB for the largest banks).. The ACPR examines the applications, checks that the required conditions have been met (capital adequacy, governance, good repute of directors, etc.) and decides whether to grant, refuse or impose special conditions on the authorisation..
Monitoring the solvency and liquidity of players
The ACPR constantly monitors the financial situation of institutions. In particular, it checks that they have sufficient own funds to cover their risks (solvency) and that they can meet their short-term commitments (liquidity)..
Preventing and managing crises (banking and insurance resolution)
Since 2013, the ACPR has been the national resolution authority.. It is responsible for anticipating and managing bank and insurance company failures in order to limit their impact.. This involves drawing up preventive recovery and resolution plans. and, if necessary, the implementation of specific resolution measures ("bail-in", sale of activities, bridge institution).
Combating money laundering and the financing of terrorism
The ACPR plays an important role in the fight against money laundering and terrorist financing (AML/CFT). It checks that reporting bodies have put in place appropriate vigilance and detection systems, in accordance with legal requirements..
How is the ACPR organised?
The ACPR's internal organisation is designed to guarantee its effectiveness and the impartiality of its decisions, in particular by separating the functions of supervision, resolution and sanctioning.. For more information, see details of the ACPR's status and organisation.
The supervisory board (executive body)
It is the ACPR's main decision-making body for the supervision of. Chaired by the Governor of the Banque de FranceIts 19 members come from a variety of backgrounds (representatives of the Banque de France, the AMF, the Autorité des normes comptables, the judiciary, qualified figures from the banking and insurance sectors, and representatives appointed by Parliament).. It meets in plenary session for general issues, in restricted session or in sectoral sub-committees (banking and insurance) for individual decisions..
The resolution college (crisis management)
Created in 2013, this special body is responsible for preparing and implementing resolution measures for institutions in difficulty.. Its membership has been tightened (8 members including the Governor of the Banque de France, the Director General of the Treasury, the Chairman of the AMF, etc.) to enable a rapid response in the event of a crisis.. It has a degree of structural autonomy within the ACPR..
The Enforcement Committee (independent disciplinary authority)
Entirely separate from the Supervisory and Resolution Boards, the Enforcement Committee is the body responsible for imposing disciplinary sanctions in the event of breaches of regulations.. Composed of 6 members (magistrates from the Council of State and the Court of Cassation, qualified individuals)its independence is guaranteed by the incompatibility of its members with those of the other colleges. Its decision is taken following an adversarial procedure.
The role of the General Secretariat
Headed by the Secretary General (appointed by ministerial order on the recommendation of the Chairman of the ACPR)he organises and directs the Authority's departments. He is responsible for carrying out documentary and on-site inspections. and prepares the decisions of the colleges. A separate Resolution Director manages the departments dedicated to this mission.
What are the ACPR's main powers?
To carry out its duties, the ACPR has a wide range of powers, from authorisation to sanction. For more information, visit find out more about the ACPR's powers.
Power to approve and withdraw approvals
As mentioned above, the ACPR issues the authorisations required to carry out banking, insurance and certain investment services.. It may also withdraw this authorisation, either at the request of the establishment or on its own initiative in the event of non-compliance with the conditions, cessation of activity or fraudulent obtaining of authorisation.. This withdrawal can also be a disciplinary sanction.
Power of inspection (documentary and on-site)
The ACPR carries out ongoing supervision through documentary audits (analysis of documents and information periodically submitted by institutions). and on-site inspections (checks at the premises of audited entities). Authorised inspectors have broad powers of investigation, including access to documents and information systems and the right to interview anyone they deem necessary.. A control charter provides a framework for these practices.
Administrative police powers (injunctions, precautionary measures, etc.)
In the event of an actual or potential risk to financial stability or customer protection, the ACPR may take administrative police measures.. These include :
- Warnings or formal notices.
- Orders to take corrective measures, possibly under penalty payment.
- Requirement for a recovery programme.
- Protective measures: limitation or prohibition of activities, suspension of the free disposal of assets, suspension or dismissal of directors, appointment of a provisional administrator.
Resolution power (fault management)
In the event of actual or foreseeable failure of an institution, the resolution college may implement specific measures. These measures, which derogate from the ordinary law governing companies in difficulty, are designed to ensure the continuity of critical functions and minimise the systemic impact of the crisis.. They include :
- Disposal of assets or businesses.
- The creation of a relay facility.
- Internal bail-in by reducing or converting certain debts and recapitalisation.
- Appointment of a special administrator.
Power to impose sanctions (disciplinary)
In the event of failure to comply with regulations, the Enforcement Committee may impose disciplinary sanctions. These can be :
- Professional: warning, reprimand, prohibition from carrying out certain transactions, suspension or compulsory resignation of directors, partial or total withdrawal of authorisation.
- Financial: fines that can reach significant amounts (up to 100 million euros or 10% of turnover depending on the case for legal entities, and up to 5 million euros for managers). These penalties may be made public. To better understanding ACPR sanctions.
When should I call on the services of a lawyer concerning the ACPR?
A lawyer with expertise in banking and finance law or insurance law may be advisable in a number of contexts relating to the ACPR.
Approval or change of status procedure
Putting together an authorisation file (banking, financial, insurance) or managing notifications relating to changes in situation (acquisition of a stake, change of directors) are complex processes.. Legal advice can help you prepare a solid file and anticipate the Authority's requirements.
ACPR inspection and possible follow-up
When an establishment is subject to a documentary or on-site inspectionThe assistance of a lawyer ensures that the procedures and rights of the inspected establishment are respected. The lawyer may also be called in to respond to the inspection report. or contest any administrative police measures.
Sanction procedure before the Enforcement Committee
If disciplinary proceedings are initiatedIn this case, legal representation is strongly recommended. The lawyer assists the establishment and/or its managers in responding to the statement of objectionspreparing the defence, presenting submissions at the hearing and, where appropriate, lodge an appeal against the decision to impose a penalty with the Conseil d'État.
Police or resolution measures affecting your establishment
Faced with an administrative police measure (injunction, precautionary measure, appointment of administrator) or a resolution measureA lawyer can analyse the legality of the decision, advise on the action to be taken and initiate the appropriate appeals.even if they are subject to resolution rules.
Litigation relating to an ACPR decision
Any individual decision by the ACPR (refusal of authorisationpolice measureetc.) may be appealed to the Conseil d'État on grounds of ultra vires.. A lawyer can assess the chances of success of such an appeal and conduct it.
Navigating the complex regulatory environment overseen by the ACPR requires a detailed understanding of the rules and procedures. If you are faced with a situation involving the ACPR and require a bank legal assistance or insurance, our firm can help you.
For an in-depth analysis of your situation and tailored advice, contact our team of lawyers.
Frequently asked questions
What is the ACPR?
The ACPR (Autorité de Contrôle Prudentiel et de Résolution) is the French body responsible for supervising the banking and insurance sectors. It oversees financial stability and customer protection.
What are the ACPR's main tasks?
Its remit includes authorising operators, monitoring their financial soundness, ensuring compliance with the rules, preventing and managing crises, and combating money laundering.
Who supervises the ACPR?
The ACPR is attached to the Banque de France but is autonomous. Its decisions may be challenged before the Conseil d'État.
Can the ACPR impose sanctions?
Yes, its Sanctions Committee can impose disciplinary and financial sanctions on establishments and managers for breaches of regulations.
When should I consult a lawyer specialising in banking law?
It is advisable to consult a lawyer when applying for authorisation, in the event of an inspection, sanction procedure, police measure or resolution, or to contest a decision by the ACPR. Sources and related content
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