U.S. Hedge Funds Face Heightened Enforcement Risk in France

Global Banking & Finance Review

05.16.2020

U.S hedge funds should expect increased regulatory oversight and enforcement risks in France. In this article, Miller & Chevalier Counsel Margot Laporte and Viviane Tse, Senior Associate at Freshfields Brukhaus Deringer in Paris, discuss recent enforcement actions taken by the French securities regulator, Autorité des marchés financiers (AMF), and provide steps U.S. hedge funds can take to mitigate enforcement risks. "In this political environment, and particularly during the COVID-19 crisis and resulting economic downturn, the AMF is likely to demonstrate heightened focus on activist hedge funds whose activities it views as destabilizing to the French market and public companies," the authors wrote. "Therefore, U.S. hedge funds seeking to invest in French companies, and particularly those pursuing activist or short-selling strategies, should take proactive steps to assess and mitigate their enforcement risk in light of their investment strategies."