COMPANIES

OPINIONS AND REPORTS TO BE DOWNLOADED

. Investors' compensation for false information on financial markets

Working group chaired by Pierre-Henri Conac

01/10/25 RA72A - Report ➡ Download ANR72A - Appendices ➡ Download

The report on investor compensation for false information on financial markets addresses the need for a comparative European study in order to better situate French law on the subject. French law, where compensation is based on the principle of loss of opportunity, is also the subject of an in-depth study. The working group found that the foreign laws studied (Germany, Spain, Italy, the Netherlands, and the United Kingdom) recognize stock market losses and provide for full compensation in various forms and to varying degrees. No American-style excesses were found. The working group did not make any recommendations but hopes that the report will contribute to the debate on the position of French law on this issue.

. Financial products sold as fractional shares

Working group chaired by Antoine Gaudemet

15/05/25 RA70A - Report ➡ Download

The HCJP has published a report on financial products marketed to retail investors under the label of “fractional shares.” The report outlines the existing forms of fractional shares and demonstrates that, from a legal standpoint, fractional shares do not constitute actual divisions of a share. It identifies the risks associated with their acquisition, notably in terms of information, counterparty exposure, and liquidity. The report recommends a regulatory framework for fractional shares based on clear disclosure, the holding of the underlying share by the selling financial intermediary, and the transfer of the share to the buyer once they accumulate a sufficient number of fractional interests. The objective is to protect retail investors and to enhance the competitiveness of the Paris financial centre.

. Corporate Sustainability Reporting Directive (CSRD) - Analysis of the risk of civil liability claims and stock market sanctions

Working Group chaired by Didier Martin

26/10/2023 RA60A - Report ➡ Download

The HCJP was consulted by the French Treasury in connection with the transposition of Directive (EU) 2022/2464 (CSRD). This directive strengthens sustainability disclosure obligations, concerning more entities, including listed SMEs and large unlisted companies. The HCJP had to determine whether this increase in the amount of information to be published, particularly forward-looking information, could lead to greater responsibility on the part of companies and their directors. Regarding the fact that the directive is above all an extension of the information to be published on sustainability (I), the HCJP concludes that the current French liability regime for CSR information is not called into question (II).

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