## France: Financial Sector Assessment Program-Technical Note on Supervision of Liquidity Risk in Investment Funds and the Oversight of Trading Activities

_IMF Staff Country Reports, August 29, 2025_

## Source details

**Canonical URL:** [France: Financial Sector Assessment Program-Technical Note on Supervision of Liquidity Risk in Investment Funds and the Oversight of Trading Activities](https://www.imf.org/en/publications/cr/issues/2025/08/18/france-financial-sector-assessment-program-technical-note-on-supervision-of-liquidity-risk-569743)

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## Bibliographic details
- Published: August 29, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229022552.002

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### Summary findings and market evolution
- Financial markets in France have evolved since the previous FSAP, particularly in respect of wholesale markets.
- France has attracted new types of trading activities and there is movement towards consolidation in the wholesale trading and asset management sectors.
- Changes have often increased the complexity of markets within France, and in turn the complexity of supervision.
- In some areas there has been a trend towards simplification and standardization in offerings, such as through Exchange Traded Funds (ETFs) and neo-brokers.
- Requirements for liquidity risk management within funds were changing at the time of the mission.
- Responsibilities of regulators have grown, with new obligations to supervise digital asset markets, sustainable finance, and digital operational resilience.

### Supervisory challenges and implications
- Increased market complexity has raised supervisory complexity.
- Consolidation in wholesale trading and asset management sectors affects oversight dynamics.
- Standardization via ETFs and neo-brokers alters product mix and operational profiles supervisors must assess.
- Evolving liquidity risk management requirements for funds require supervisory adaptation.

### Regulatory changes and expanding supervisory scope
- Significant regulatory changes occurred prior to and during the mission.
- New supervisory obligations explicitly include:
  - Digital asset markets
  - Sustainable finance
  - Digital operational resilience
- The technical note addresses supervision of liquidity risk in investment funds and oversight of trading activities within this evolving regulatory context.

### Subjects and keywords
- Subject: Asset and liability management; Asset management; Financial regulation and supervision; Financial sector policy and analysis; Financial sector stability; Liquidity; Liquidity risk
- Keywords: Asset management; derivative trading obligation; Financial sector stability; Global; Liquidity; Liquidity risk; management directive; money market fund regulation; trading ACTIVITES; trading activity

*International Monetary Fund. France: Financial Sector Assessment Program-Technical Note on Supervision of Liquidity Risk in Investment Funds and the Oversight of Trading Activities. August 29, 2025.*

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_Source: https://www.imf.org/en/publications/cr/issues/2025/08/18/france-financial-sector-assessment-program-technical-note-on-supervision-of-liquidity-risk-569743_