French financial market authority Autorité des Marchés Financiers has announced that the number of licensed asset management companies in France was 630 as of 31 December 2017.
Also AMF’s agreement has been withdrawn from 35 asset managers, which makes 2017 the second year with the highest number of AM license withdrawals behind 2015 which saw 38 companies losing their agreement.
AMF said more than 63% of agreement withdrawals in 2017 were consecutive to consolidation while these following a business failure accounted for 20% of the AM licenses withdrawn (7 managers). Nine of the 35 companies shutted down last year because of the change in the French law regarding the status of asset management companies, that distinguishes asset managers from investment firms.
Regarding company launches, the French regulator notes that 66% of them (23 over 35) were private equity or real estate firms. Sophisticated asset managers, in particular these using a quantitative approach, formed 20% of the licenses granted by AMF. The remaining 14% were traditional asset management firms.
Entrepreneurial managers accounted for 51% of the 35 asset management companies launched last year against 60% in 2016.