The new Act 1.529 of 29 July 2022, resulting from Bill 1.049 and published on 12 August 2022, containing various economic and legal provisions, amends the provisions relating to solicited and unsolicited approaches by authorized / unauthorized companies to offer financial services, instruments, or products (the "Law"). It makes significant changes to Article 29 of Law 1.338 of 7 September 2007 on financial activities, as amended, and creates two new articles (29-1 and 29-2).
The new provisions on direct marketing make a clearer distinction between the regime applicable to non-authorised players in Monaco and the regime applicable to authorised companies.
Non-authorised players in Monaco under Law n°1.338
A ban on - solicited or non-solicited - canvassing on the territory of the Principality maintained but made more flexible
- By adding exemptions as to the targeted customers. The ban will
not apply when the person domiciled in the Principality is a
sophisticated target:
- an institutional investor;
- an authorised company; or
- a client of an authorised company when the procedures are carried out through its intermediary.
- By an exemption for events organised on the territory of the Principality which bring together professionals from the banking and financial sector, subject to prior notification to the CCAF and unless the CCAF gives an unfavorable opinion.
A regulated recognition of canvassing steps carried out remotely
The Law validates, in its new Article 29-1, any canvassing step that is carried out remotely (i) when the act is solicited (by a reading of the article a contrario), and (ii) in the opposite case, when the person domiciled in Monaco is already a client of the non-authorised person or entity.
The Monegasque legislator is adopting a reversal of position which suggests a much more flexible regulation, now allowing reverse solicitation. Furthermore, the Law now takes into account the relationships already established between certain non-authorised companies and Monegasque investors who were clients of the said companies.
Authorised companies under the Law n°1.338
The removal of the ban on unsolicited canvassing in public places
The new law has reconsidered the legal framework of unsolicited canvassing for authorised companies under its Article 29-2.
The removal of the prohibition on unsolicited canvassing in public places is enshrined, it being understood that it should essentially concern unsolicited canvassing made during periodic events organised in the Principality, the main purpose of which is to bring together representatives of the banking and financial profession, some of whom are located abroad, others of whom are based and duly authorised in Monaco.
We note that the prior authorization of the CCAF, which made it possible to override this prohibition under Law 1.515, is therefore no longer relevant.
While we can welcome the clarifications provided by the Monegasque Legislator under this Law, the fact remains that the new regulation deviates in some respects from the observations made by the Rapporteur on behalf of the Legislation Committee in her report.
The sovereign ordinance called for to specify the conditions of application of Article 29 which, at the date of this report, has not yet been published, is still eagerly awaited.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
