The development of insider networks, operating in a coordinated manner on financial markets and thereby compromising their integrity, is a major concern of the French Financial Markets Authority (Autorité des marchés financiers, or AMF), which regularly issues warnings on this issue. In particular, on 9 July 2025, the AMF and the French Anti-Corruption Agency (Agence française anticorruption, “AFA”) issued a joint call for vigilance to warn of the risk of private corruption by criminal networks of individuals with access to inside information.[1]

The joint recommendation of these two authorities aimed in particular to prevent and detect the risks of insider information being passed on by certain categories of individuals likely to have access to it in the course of their duties, to train them, but also to formalize reminders of the prohibition of insider trading in internal documents such as guides or codes of ethics, as well as to strengthen policies on gifts and invitations and to promote internal whistleblowing mechanisms.

In doing so, the AMF and the AFA relied on companies, particularly listed companies, to detect and prevent risks related to insider trading.

Furthermore, in its 2024 annual report, the AMF stated that it had observed, “in the course of investigations into alleged market abuse, the existence of genuine insider networks organizing themselves to illegally and repeatedly obtain privileged information about listed companies with the aim of profiting on the financial markets,” and went on to say that it had “prepared a series of legislative provisions designed to strengthen the effectiveness and efficiency of its enforcement action, in particular with a view to better fighting insider networks and market abuse, sometimes linked to money laundering and terrorist financing, organized crime, and drug trafficking.”[2]

These “legislative provisions” have now been incorporated into a bill presented to the French National Assembly on September 16, 2025, by Daniel Labaronne MP. This proposed bill calls for the AMF’s arsenal of detection, prevention, and sanctioning measures to be expanded. In his report to the National Assembly, Daniel Labaronne MP emphasized that “in order to continue coping with its responsibilities, the AMF must constantly adapt.” The message is clear: the AMF needs to strengthen its enforcement efforts to cope with the transformation of financial crime.

The bill aimed at fighting financial fraud and strengthening financial security, presented to the National Assembly on September 16, 2025 reiterates the AMF’s priorities and challenges in terms of enforcement (I). It aims to strengthen its effectiveness in three areas: fighting organized crime, insider trading networks and scams (II), simplifying enforcement procedures (III) and improving the procedure before the AMF’s Enforcement Committee (IV).

I. The AMF’s priorities and challenges in fighting financial crime

As part of the presentation of the AMF’s annual report during its hearing before the Finance Committee of the French National Assembly on June 25, 2025,[3] Marie-Anne Barbat-Layani, Chair of the AMF, presented the regulator’s priorities, which include “adapting investor protection activities to a rapidly changing environment, as well as continuing to support innovation and sustainable finance and fighting financial insecurity. The latter affects investors through scams—which are a widespread phenomenon—but also financial markets through international insider networks.”

This observation came with the following request: “The AMF must therefore have enhanced legal powers to better fight financial crime,” and a desire to obtain additional legal means to fight “the expansion of international networks engaged in money laundering, undoubtedly originating from organized crime or even drug trafficking, through insider trading on the capital markets.”[4]

This need for additional resources is expressed as necessary to enable the AMF to fully play its role as a leading regulator, guaranteeing the integrity of the French financial markets. In this regard, Marie-Anne Barbat-Layani emphasized on the AMF’s increasingly sustained action, which “now cooperates more closely than ever with all financial players, and in particular, in this area, with the French National Financial Prosecutor’s Office (PNF). We are making full use of the international cooperation mechanisms that exist within our international bodies to work with other major market regulators, particularly our American and British counterparts, who are seeing the same phenomena on their markets.” [5]

The AMF’s concerns were ultimately echoed by a group of members of Parliament who, in the recitals to the bill aimed at fighting financial fraud and strengthening financial security, pointed out that : [6]

“In recent years, the AMF has observed a worrying trend: the development of ‘insider networks’ linked to organized crime. These groups organize themselves to illegally obtain privileged information, which they use to carry out transactions before important announcements (takeover bids, financial results, etc.) or sell to third parties, generating substantial gains. These practices seriously undermine the integrity and efficiency of the French financial market, weakening investor confidence, particularly in listed companies and their legal and financial advisors.

The increasing sophistication of the techniques used—recruitment, processing and transmission of information, money laundering—makes it necessary to adapt the AMF’s legal tools to better fight insider trading networks and market abuse, which are sometimes linked to money laundering and terrorist financing, organized crime, and drug trafficking.”

Members of Parliament also noted the rise of a second “scourge” involving “massive scams […] targeting investors, amplified by digital technology and artificial intelligence,” citing figures provided by the AMF Chair, who denounced a real “social phenomenon” since “15% of French people believe they have been victims of financial fraud; the figure rises to 35% among those under 35.”

The response to these findings is threefold:

• Strengthening the fight against organized crime, insider networks, and scams;
• Simplifying the AMF’s enforcement procedures to extend its scope of action; and
• Enhancing the effectiveness of proceedings before the AMF’s Enforcement Committee.

II. Strengthening the fight against organized crime, insider networks, and scams

The first section of the proposed law aimed at fighting financial fraud and strengthening financial security seeks to strengthen the fight against organized crime, insider networks, and scams in several ways: broader access to certain information, stronger links between the AMF and the judicial authorities, and finally—and most importantly—the establishment of a leniency program.

Article 5 of the bill also proposes to draw legislative conclusions from the Constitutional Council’s decision of January 28, 2022 (No. 2021-965 QPC) based on the principle of ne bis in idem with regard to obstruction of AMF investigations and controls and the offense of obstruction, which are currently covered by separate provisions in the Monetary and Financial Code. This article proposes to limit the scope of the offense of obstruction to obstructions found in investigations into market abuse and, in order to prevent multiple prosecutions, to subject acts that could be classified as obstruction to the same formal referral process that currently exists for market abuse.

A. Extended access for the AMF to certain information and data collection techniques

Article 1¹of the proposed law would allow the AMF to access publicly available content on online platforms automatically, rather than manually, through a process commonly known as “web scraping,” in order to use it in investigations into market abuse. Article 2 aims to extend this access to enable the AMF to carry out its supervisory missions and monitor illegal financial products and services, including cryptoassets.

While web scraping is not prohibited per se, the CNIL (French data protection agency) calls for vigilance and proportionality in its use, which lead it to consider that this practice is prohibited in the absence of a legal framework when processing is carried out by competent authorities for the purpose of detecting infringements.[7] Thus, unless regulated by a normative text, web scraping cannot be used as an investigative technique. The proposed law aims to provide AMF investigators and controllers with such a technique.

These two provisions are proposed “on an experimental basis” for a period of five years. The results of the experiment are to be submitted to Parliament and the CNIL before any decision is made on whether to make them permanent.

The extension of the means available to the AMF to gather evidence to support the commission of certain breaches also concerns the use of an assumed identity. While this option is already provided for in Article L. 621-10-1 of the Monetary and Financial Code for AMF investigators and inspectors in order to document how a service is provided by a regulated entity, Article 3 of the proposed law aims to extend it in order to better identify illegal financial offers (monitoring mission) and better detect market abuse as part of the AMF surveillance and investigation missions.

B. Strengthening ties between the AMF and the judicial authorities with regard to the disclosure of evidence

Article 4 of the proposed law allows the public prosecutor for financial matters and investigating judges to refer cases to AMF investigators specially authorized for this purpose in the context of criminal investigations into market abuse. While this is certainly a procedural innovation, it was already common practice for investigating judges to request the assistance of AMF investigators during interrogations or interviews.

As the explanatory statement points out, this measure is inspired by the one that exists for agents of the Directorate-General for Competition, Consumer Affairs and Fraud Control (DGCCRF) and the French Competition Authority.[8] This mechanism is also being proposed on an experimental basis for an initial period of three years, after which it will be evaluated before a decision is made on whether to make it permanent.

Article 6 of this proposal also suggests extending to all public prosecutors’ offices the ability to share with the AMF documents relating to criminal proceedings (minutes, reports, etc.) that are directly linked to facts that may be subject to the AMF’s Enforcement Committee. This power currently exists only for the French National Financial Prosecutor’s Office (PNF), which has privileged channels of cooperation with the AMF as a result of their very similar areas of competence.

C. Creation of a leniency program, an innovation designed to strengthen the fight against insider trading networks

Undoubtedly one of the most significant innovations in this bill, and one that has been eagerly awaited by some, Article 7 creates a leniency program for market abuse and irregular public offerings of securities.

The leniency envisaged takes the form of a total exemption or reduction in penalties. It may be granted by the Enforcement Committee to persons who have provided the AMF with information that it did not previously have and that helps to identify the persons involved or to establish breaches. This leniency is intended to be applied in cases falling within the jurisdiction of the AMF’s Enforcement Committee, but also in criminal proceedings. The proposed law does not specify the levels of reductions or the possible markers available to leniency applicants, which may be detailed later in the AMF’s general regulations or in a specific procedure.

This represents a very strong incentive for repentance and cooperation, which is unprecedented for the AMF. Indeed, to date, cooperation with the AMF is only marginally and opaquely valued as a factor that may be taken into account by the Enforcement Committee in adjusting the amount of penalties imposed.[9]

The French Competition Authority, which has long had this mechanism and on which the proposed law is largely based, describes it as a “powerful factor in destabilizing cartels”[10] and this can be transposed to insider networks.

In conclusion, if adopted, this provision should also enable companies to respond more readily to alerts, reports, or suspicions that may be brought to their attention and, where appropriate, to take a spontaneous and proactive approach to investigating breaches, for example by conducting internal investigations.

III. Simplification of the AMF’s enforcement procedures with a view to expanding its scope of action

The procedural innovations included in the draft law of September 16, 2025, aim to enable the AMF to take broader, more effective, and more dissuasive enforcement action.

Article 8 of this draft law creates a “simplified settlement” (transaction simplifiée) mechanism that echoes the “administrative settlement” (composition administrative) provided for in Article L. 621-14-1 of the Monetary and Financial Code, which allows the AMF Board (Collège) to propose a negotiated resolution of the investigation or inspection procedure in exchange for financial commitments and/or remedial measures. The administrative settlement procedure is subject to relatively short time limits and generally concerns cases where the evidence of non-compliance is firmly established, without major complexity or jurisprudential issues, or which involve a limited number of parties.

Unlike administrative settlement, the “simplified settlement” would take place even before any investigation or inspection. It would be dedicated to minor reporting breaches and would concern both individuals and legal entities. This simplified settlement could be proposed on the initiative of the AMF’s Secretary General in exchange for the payment by the person concerned of a maximum amount of €30,000. While this sum is relatively limited, the proposed text is silent on the treatment of repeated or continuous breaches.

The aim of this tool is to enable the AMF to deal with certain breaches which, given their minor nature and the need to allocate resources appropriately, were often not followed up despite being detected.

Article 9 of the proposed law aims to strengthen the AMF Board’s power of injunction, which is provided for in Article L. 621-14 II of the Monetary and Financial Code, under which this body may, after giving the person concerned the opportunity to present their explanations, order that the breaches observed be remedied. The bill proposes that this administrative power to issue injunctions be accompanied by a penalty payment (astreinte), similar to that which exists for the Prudential Control and Resolution Authority (ACPR), the CNIL and the French Competition Authority. Indeed, the explanatory memorandum to the bill notes that “it has become apparent that the absence of a penalty payment is likely to compromise the effectiveness of the administrative measures that the AMF’s Board may be required to take, particularly in urgent situations, to ensure the proper functioning of the markets and enforce financial regulations. The ability to accompany an administrative injunction with a penalty payment, when appropriate, will make this power more dissuasive.”

Article 10 of the proposed law, which should be balanced with the necessary respect for the presumption of innocence, aims to allow the AMF to communicate on ongoing investigation, inspection or enforcement proceedings in order to enable the AMF to draw investors’ attention to the “illegal nature” of certain financial products or to correct information that may have been revealed in the media about ongoing procedures. As it stands, this right to communicate would be conditional “either on the need to inform investors, ensure the proper functioning of financial instrument markets or protect savings invested in financial instruments, or to prevent or stop the spread of incomplete or inaccurate information.”

However, in its current wording, this article does not provide for any recourse against such disclosure, which could potentially damage the reputation of the persons concerned.

Article 11 of the proposal aims to strengthen the system of home visits (visites domiciliaires), comparable to dawn raids, by AMF investigators provided for in Article L. 621-12 of the Monetary and Financial Code. Under this provision, the items that may be seized by AMF investigators would no longer be limited to “documents” but would be extended to “any information medium and, where applicable, the means of decrypting it, that may be held or accessible or available.” This article also simplifies the procedures for appointing and involving judicial police officers in home visits. Finally, in the event that visits and seizures carried out by the AMF are annulled by the First President of the Court of appeal, and in order to avoid the risk of evidence being lost, the article provides that the seized items shall be kept until a final and irrevocable decision is rendered, i.e., until the outcome of the appeal to the Supreme Court (Cour de cassation), when such an appeal is filed, as emphasized in the explanatory statement of the proposed law.

Finally, Article 12 of the proposed law includes another major innovation: the power of the AMF’s Secretary General to require regulated entities to carry out external audits to ensure compliance with applicable regulations. This article, which would be included in the subsection entitled “Monitoring and supervision” of the section of the Monetary and Financial Code detailing the powers of the AMF, provides that this audit may be carried out by “an independent service provider approved by the AMF. The specific purpose of the audit shall be indicated in writing to the professional. The cost of the audit shall be borne by the professional.” The explanatory memorandum to this bill makes direct reference to the practice of the UK Financial Conduct Authority, which in a number of cases would make it possible to avoid the initiation of supervisory proceedings and speed up the implementation of remedial measures.

The proposed law does not define the concept of “independent service provider,” which could therefore be an auditor, a forensic expert, or even a law firm, allowing the companies concerned to benefit from the legal privilege.

This discretion left to the AMF Secretary General seems extremely broad, as the text does not currently provide for any criteria for triggering such an audit request, such as serious suspicions of misconduct, repeated complaints from investors, etc.

Furthermore, the request to carry out such an audit, and the sharing of its findings with the regulator, will also have to be weighed against the right not to incriminate oneself.

IV. Strengthening the effectiveness of proceedings before the AMF’s Enforcement Committee

The last part of the proposed law directly concerns the proceedings before the Enforcement Committee, enabling it to better tailor the sanctions imposed, to benefit from a wider range of sanctions, and to extend the possibilities for challenging its decisions.

Article 13 of the proposed law would give the rapporteur of the Enforcement Committee the possibility to request information relating to the financial situation of the defendants directly from the tax authorities, whereas, to date, the practice has been for the rapporteur to question the defendants on this subject, asking them to provide information on their assets, the completeness of which cannot be verified. However, this article would not allow the rapporteur to obtain, in practice, information on the extraterritorial assets of the defendants, particularly when they are foreign residents.

Article 14 of this proposed bill expands the range of sanctions that can be imposed by the AMF Enforcement Committee by adding a ban, for a maximum period of ten years, on holding a corporate office in a listed company and trading financial instruments on one’s own account.

Article 15 of this proposal would also extend the Enforcement Committee’s jurisdiction over irregular public offerings, which is currently limited mainly to offerings involving real estate investment companies, mutual banks, and cooperatives incorporated as public limited companies.

Finally, the explanatory memorandum to this bill states that Article 16 aims to end the asymmetry whereby only the AMF Chairman can lodge an incidental appeal when the person sanctioned has themselves lodged a main appeal against a decision of the Enforcement Committee. It is therefore proposed that, in the event of a main appeal lodged by the AMF Chairman against a decision handed down by the Enforcement Committee, the person sanctioned should also have the right to lodge a cross-appeal in order to challenge the allegations against them and the amount of the sanction, within the same time limits as those available to the AMF Chairman to lodge a cross-appeal. It should be noted, however, that cross-appeals by the AMF Chairman are not frequent, with no cross-appeals recorded in 2024 and only two in 2023.

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In conclusion, the AMF’s appeal to the Finance Committee of the National Assembly for additional resources has clearly been heard.

Some of these measures are ambitious and innovative and would undoubtedly strengthen and increase the effectiveness of the AMF’s enforcement activities, as well as bringing about a significant change in judicial proceedings in market abuse cases. Of particular note and welcome is the leniency program, which we hope will enable the AMF to engage in more in-depth dialogue with those under investigation.

However, this bill has not been an opportunity to strengthen the rights of the defense, which remain limited in AMF proceedings. Indeed, the increase in the AMF’s powers is not accompanied by any change in the rights of access to investigation files, which are very late in the proceedings, or in the deadlines for responding to the rapporteur’s report. Finally, while the range of sanctions is set to evolve, the bill is silent on the criteria for determining the amount of financial penalties and on the quantification of aggravating and mitigating factors, which are already well developed among its foreign counterparts and other regulators from which it draws inspiration.

The evolution of this proposal will therefore need to be monitored closely…