The Autorité de contrôle prudentiel et de résolution (formerly known as the Autorité de contrôle prudentiel, ACP) was set up on 21 January 2010. Its establishment stems from reflections on reforming the financial system that took place in the wake of the global financial crisis.
The Authority was set up to achieve the goal of establishing a strong supervisory authority, armed with a comprehensive view of the financial sector (banking and insurance).
The main steps involved in establishing the ACPR
August 2008: The French Law on the Modernisation of the Economy (LME) paves the way for changes to the French supervisory system. In particular, it allows the Government to take the measures necessary to merge the licensing and supervisory authorities of the banking and insurance sectors closer together, while redefining their tasks, powers and operations, with a view to ensuring financial stability.
January 2009: Two reports by the French General Inspectorate of Finance recommend that the licensing and supervisory authorities overseeing the banking and insurance sectors be merged, and that two separate authorities be retained: one in charge of markets, and the other in charge of the prudential supervision of regulated entities.
• Report issued following the reflection and proposal assignment conducted on the way the supervision of financial activities is structured and operates in France
• Report issued following the advisory assignment conducted on the monitoring of professionals’ compliance with their obligations towards their customers in the financial sector
July 2009: After consulting with the authorities and industry professionals concerned, the Minister of the Economy (Christine Lagarde) publicly announces her guidelines concerning the organisation and operation of the future Autorité de contrôle prudentiel.
21 January 2010: French Ministerial Order No 2010-76 on the establishment of the ACP is published in the JORF (Journal Officiel de la République Française, the government gazette of the French Republic). This decree sets out the duties, organisational set-up, membership and procedures of the new Authority. This Authority, the ACP, is established in March 2010, and formed by the merger of:
- the former banking and insurance authorisation authorities, namely the CEA (Comité des entreprises d’assurance, the Committee for Insurance Companies operating in France), the CECEI (Comité des institutions de crédit et des entreprises d’investissement, the Committee for Credit Institutions and Investment Companies operating in France), with
- the former banking and insurance supervisory authorities, namely the CB (Commission Bancaire, the French Banking Commission) and the ACAM (Autorité de contrôle des assurances et des mutuelles, the Supervisory Authority for Insurance Companies and Mutual Societies).
3 March 2010: French Ministerial Decree No 2010-217, provided for by the aforementioned Order, provides several clarifications as regards the organisational set up, the conduct of supervision and procedures of the ACP. At the same time, a number of appointment orders are published that establish the composition of the College, the Sanctions Committee and the Secretary General of the ACP.
9 March 2010: The College of the ACP, which was set up by Christine Lagarde, Minister of the Economy, meets for the first time and holds its first plenary session.
22 October 2010: The French Banking and Financial Regulation Act ratifies the Ministerial Order establishing the ACP. Several changes are made to the composition of the College, as well as to Sanctions Committee proceedings and customer protection rules.
26 July 2013: French Law No 2013-672 on the separation and regulation of banking activities entrusts the ACP (which becomes the ACPR – Autorité de contrôle prudentiel et de resolution, Prudential and Supervision Resolution Authority) with the task of supervising the drafting and implementation of measures aimed at preventing and resolving banking crises.
Set up on 9 March 2010 pursuant to the Ministerial Order of 21 January 2010, the ACP (which became the ACPR in 2013) was formed by the merger of the supervisory authorities for the banking and insurance sectors with the authorisation authorities overseeing these sectors. The creation of this authority with expanded powers is a response to the new challenges that arose during the 2008 financial crisis and in its wake: this new authority is explicitly tasked with safeguarding the stability of the financial system, in order to prevent the emergence of new financial crises. The ACPR also ensures the protection of all customers, policyholders, members and beneficiaries of undertakings under its supervision. The Authority is also responsible for combating money laundering and the financing of terrorism (AML/CFT).
On 26 July 2013, the banking separation and regulation act conferred new powers on the ACP in the area of banking resolution, to facilitate the cost-effective resolution of crises. The Authority thus became the Autorité de Contrôle Prudentiel et de Résolution. The ACPR's resolution powers were extended to the insurance sector in December 2016.
Since the implementation of the Banking Union in the euro area, which focused first on the development of the Single Supervisory Mechanism in 2014, and was then extended to the Single Resolution Mechanism in 2015, the ACPR has been carrying out its prudential supervision duties over the banking sector within this new framework.
The ACPR is also responsible for supervising the insurance sector. This mission is conducted by the Authority within the framework of the harmonisation of European regulations, an initiative fostered by the European Insurance and Occupational Pensions Authority (EIOPA), in which the ACPR plays an active role.