The French monetary regulator the Autorité des Marchés Financiers (AMF) announced this week that is has begun a discourse concerned with private equity funds owned by retail investors. The AMF launched the consultations after it witnessed a large number of funds exceeding their reported lifespans.
The watchdog revealed the types of equity funds involved in this: local investment funds (FIPs), innovation venture capital funds (FCPIs), and venture capital funds (FCPRs).
The consultation is formed out of 19 separate proposals originating from the initiative of the AMF board, which currently holds a working group hosting various representatives from private investment companies, retail investors, depositories, and other professionals with the capacity to offer feedback. The idea of this group is to work towards a better safety net for users investing in these types of products.
One of the core issues to be tackled by the group, according to the overseer, is whether or not the current 10-year span of equity funds is proper for creating value in sections of the local economy.
Due to equity firms and their disregarding practices, the regulator has been receiving a steady amount of claims from retail investors proclaiming that said firms have exceeded the official life spans of their equity funds.
AMF will be taking proposals and feedback to the group until mid October 2022.