THE REGULATION OF FINANCIAL ACTIVITIES TO BE MODIFIED SOON

The project of a legislation N.1035, amending the law N.1.338 of September 7, 2007 on financial activities has now been officially published. This project was indeed submitted on April 30th, 2021 on the desk of the National Council.

This project intends to amend significantly the current Law framing financial activities in Monaco.

To be noted in particular:

• The end of the incompatibility regime between Monegasque fund management activities and the performance of reception and transmission of orders;
• An amendment to the solicitation regulation in Monaco in connection to financial activities;
• The end of some exemptions concerning credit institutions performing financial activities (solicitation, marketing materials, etc…) ;
• New significant requirements in terms of policy and management of conflicts of interest;
• A reinforcement of international cooperation even when the facts under investigation would not be subject to sanction under Monegasque law;
• A new regulation of market abuse in Monaco based on the European regulation (price manipulation and insider trading).

This overhaul of financial regulations in Monaco creates a new legislative framework for the exercise of financial activities in the Principality, in line with contemporary international standards and requirements.