COMPANIES

OPINIONS AND REPORTS TO BE DOWNLOADED

. 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).