Compliance and Regulation Law bilingual Dictionnary

Compliance and Regulation Law bilingual Dictionnary

The procedural safeguards enjoyed by a person whose situation may be affected by a future judgment are principally the right to bring proceedings before the court, the rights of the defense and the benefit of the contradictory principle.

The legal action was for a long time considered as a "power", that is to say, a mechanism inserted in the organization of the judicial institution, since it was by this act of seizure, access by which the person enters the judicial machine, through the latter starts up.

But in particular since the work of René Cassin and Henri Motulsky, legal proceedings are considered as a subjective right, that is to say, a prerogative of any person to ask a judge to rule on the claim that the plaintiff articulates in an allegation, that is a story mixing the fact and the law in a building and on which he asks the judge to give an answer, such as the cancellation of an acte, or the award of damages, or the refusal to convict him (because the defense is also the exercise of this right of action).

The legal action is now recognized as a "right of action", the nature of which is independent of the application made to the court, a subjective procedural right which doubles the substantive subjective right (eg the right to reparation) and ensures the effectiveness of the latter but which is autonomous of it. This autonomy and this uniqueness in contrast with the variety of the sort of disputes (civil, criminal or administrative) makes the right of action a pillar of the "Procedural Law" on which a part of European and Constitutional Law are built. In fact, Constitutional Law in Europe is essentially constituted by procedural principles (rights of defense, impartiality, right of action), since the principle of non bis in idem is only an expression of the right of action. Non bis in idem is a prohibition of double judgment for the same fact which does not prohibit a double trigger of the action (and criminal, civil and administrative). This unified due process of Law has helped to diminish the once radical separation between criminal law, administrative law and even civil law, which are clearly separated from one another in the traditional construction of legal systems and which converge today in the Regulatory and Compliance Law.

Moreover, the subjective right of action is a human right and one of the most important. Indeed, it is "the right to the judge" because by its exercise the person obliges a judge to answer him, that is to say to listen to his claim (the contradictory resulting therefore from the exercise of the right of action ).


Thus the right of action appears to be the property of the person, of the litigant, of the "party". This is why the attribution by the law of the power for the Regulators to seize itself, which is understood by reason of the efficiency of the process, poses difficulty from the moment that this constitutes the regulatory body in "judge and party", since the Regulator is in criminal matters regarded as a court, and that the cumulation of the qualification of court and of the quality of party is a consubstantial infringement of the principle of impartiality. In the same way, the obligation that Compliance Law creates for operators to judge themselves obliges them to a similar duplication which poses many procedural difficulties, notably in internal investigations.

There is a classical distinction between public action, which is carried out by the public prosecutor, by which the public prosecutor calls for protection of the general interest and private action by a person or an enterprise, which seeks to satisfy its legitimate private interest. The existence of this legitimate interest is sufficient for the person to exercise his or her procedural right of action.

In the first place, the person could not claim the general interest because he or she was not an agent of the State and organizations such as associations or other non-governmental organizations pursued a collective interest, which could not be confused with the general interest. This procedural principle according to which "no one pleads by prosecutor" is today outdated. Indeed, and for the sake of efficiency, Law admits that persons act in order that the rule of law may apply to subjects who, without such action, would not be accountable. By this procedural use of the theory of incentives, because the one who acts is rewarded while and because he or she serves the general interest, concretizing the rule of law and contributing to produce a disciplinary effect on a sector and powerful operators, procedural law is transformed by the economic analysis of the law. The US mechanism of the class action was imported into France by a recent law of 2014 on "group action" (rather restrictive) but this "collective action" , on the Canadian model, continues not to be accepted in the European Union , Even if the European Commission is working to promote the mechanisms of private enforcement, participating in the same idea.

Secondly, it may happen that the law requires the person not only must have a "legitimate interest in acting" but also must have a special quality to act. This is particularly true of the various corporate officers within the operators. For the sake of efficiency, the legal system tends to distribute new "qualities to act" even though there is not necessarily an interest, for example in the new system of whistleblowers, which can act even there is no apparent interest.

Compliance and Regulation Law bilingual Dictionnary

Regarder la vidéo de définition du "droit subjectif"

Compliance and Regulation Law bilingual Dictionnary

Compliance and Regulation Law bilingual Dictionnary

March 23, 2020

Publications

Without any request, on his or her newsfeed, those who surfs on the social network built by Facebook, has found on 23 of March 2020, in the morning, the following message :

« X (prénom de l'internaute), agissez maintenant pour ralentir la propagation du coronavirus (COVID-19) Retrouvez les actualités des autorités sanitaires et institutions publiques, des conseils pour ralentir la propagation du coronavirus et des ressources pour vous et vos proches dans le Centre d’information sur le coronavirus (COVID-19)" ("X (user's name), act now to slow down the spread of the Coronavirus (COVID-19). Find the health authorities and public institutions' news, advices to slow down the spread of the Coronavirus for you and your entourage in the Information Center about Coronavirus (COVID-19) »).

This corresponds to the more general declaration done the same day by Kang-Xing Jin, director of Health at Facebook, who declares : "In response to the coronavirus outbreak, Facebook is supporting the global public health community’s work to keep people safe and informed. Since the World Health Organization declared the coronavirus a public health emergency in January, we’ve taken steps to make sure everyone has access to accurate information, stop misinformation and harmful content, and support global health experts, local governments, businesses and communities.".

Thanks, Facebook to indicate how to do ; by the way, thanks to having invited me to do it. By the way, is it really an « invitation » ? Since the expression is « act now ». Just miss the exclamation point, and the pointed finger of Uncle Sam for « war effort »!footnote-1770.

If in Law, we can consider « invitation », it would be not to the "invitation" that in the past Bank of France did to shareholders banks to refinance a bank which risks to be soon into difficulties that we could consider, invitation from which the invited cannot really escape. No, obviously no, it is just the same message that you and me can write on our Facebook pages to tell similar things about the same purpose ! But, Facebook would be, like you and me, editor of contents ?

Questions and difficulties which encourage to proceed to the legal analysis to know under which title Facebook posted such a message.

The first hypothesis is that this firm has acted spontaneously, following its « Corporate Social Responsibility » (I) If it is the right qualification, with regards to the content of the message, legal consequences are important because this firm, without generalizing to others, by the expression of its care of common good, shows, by transitivity, that it is an editor.

The second hypothesis starts from the observation that Facebook is a « crucial digital operator ». In this perspective, the firm is constraint to Compliance Law (II). It is the reason why, it is constraint by specific obligations, that excludes the spontaneous message emission qualification. If it is the right qualification, with regards to the content of the message, legal consequences are also important and of a totally different nature. Indeed, the qualification leads to develop the relation between the obligation to fight against fake news and malicious websites towards those of redirecting towards public websites, benefiting for the operator of a reliability presumption.

Read the developments below.

1

Rhetoric of patriotic requisition, whose the image was taken back a lot then, either to appropriate better its efficiency outside war context, or to criticize it, principally to laugh at it

March 18, 2020

Publications

Référence générale : Frison-Roche, M.-A., L'avocat, porteur de conviction dans le nouveau système de Compliance, Dalloz Avocat, mars 2020.

English Summary of the article (written in French) : 

If we perceive Compliance Law as an aggression of the private company and a binding set of mechanisms that have no meaning and added value for it, then the attorney has a utility: to defend the business. It can do so not only during the sanctions phase, but also to prevent it.

But this function is not central.

He and she becomes so if we understand Compliance Law as being a body of substantial rules, pursuing a "monumental goal": the protection of the person, goal injected by political bodies and taken up by the operator. From this, the company must convince everyone to take it back, inside the company and outside. In a general and contradictory debate, the attorney carries this conviction, because he and shed is always convincing those who in the end judge (market, public opinion, etc.) that is their raison d'être.

 

Read the article

 

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Read the Working Paper underlying this article, with the technical references and all the articles serving as the basis for all the assertions in this article

 

 

 

 

 

March 18, 2020

Teachings : Banking and Financial Regulatory Law, spring semester 2020

Résumé de la leçon sur le Droit de la Compliance : La Compliance, ne serait-ce que par ce terme même, est un mécanisme nouveau dans les systèmes juridiques européens, venant en convergence du Droit de la concurrence, du Droit financier et du Droit du commerce international. L'on considère généralement qu'il provient du Droit financier et du Droit américain, qui développe ainsi d'une façon extraterritoriale ses conceptions juridico-financières. 

Est ainsi en train de naître un Droit de la Compliance. 

Il pourrait être celui qui disciplinerait l'économie numérique, laquelle croise étroitement l'économie bancaire et financière, qu'elle renouvelle.

Pour en mesurer l'importance et le développement, qui ne font que commencer, le plus probant est de commencer par sa dernière manifestation en Droit français, à savoir la promulgation en France le 9 décembre 2016 de la loi dite "Sapin 2", suivant de peu la loi du 21 juin 2016 sur les abus de marché et suivie de peu par la loi du 27 janvier 2017 sur le devoir de vigilance des sociétés mère.

 

 

Revenir à la Présentation générale du Cours de Droit de la Régulation bancaire et financière.

Revenir à la Bibliographie générale du Cours de Droit de la Régulation bancaire et financière

Revenir aux bases avec le Dictionnaire bilingue du Droit de la Régulation et de la Compliance.

Revenir au plan général du Cours de Droit de la Régulation bancaire et financière

Se reporter à l'ensemble des documents de support pour le Cours de Droit de la Régulation bancaire et financière. 

 

Accéder aux slides servant de support à la leçon sur la régulation internalisée dans les opérateurs bancaires et financiers par l'émergence du Droit de la Compliance.

 

 

Voir ci-dessous la bibliographie de base et d'approfondissement sur le Droit de la Compliance

March 5, 2020

Conferences

Référence : Frison-Roche, M.-A., La mesure de l'effectivité et de l'efficacité des outils de la compliance (conception, présentation et modération des débats), in Les outils de la Compliance, Journal of Regulation & Compliance.

Voir les autres thèmes, autres dates et autres manifestations particulières du cycle dans son ensemble. 

 

Cette conférence sert d'appui à la réalisation d'un ouvrage plus global portant d'une façon générale sur Les outils de la Compliance.

 L'ouvrage Compliance Tools sera publié en même temps. 

 

Présentation de la Conférence : Après avoir examiné différents outils spécifiques, comme La cartographie des risques ou Les incitations, et avant d'en aborder d'autres comme ceux relevant de la a Compliance by Design, celle-ci méritant  aussi d'être examinée avec quelque distance dans sa prétention à être la solution à tout enjeu de compliance, il convient de regarder comment l'on mesure l'efficacité de tous ces outils de Compliance. En effet, puisque toutes les techniques sont des "outils", ils ne prennent sens qu'au regard d'une finalité qu'ils doivent atteindre effectivement. Cette effectivité doit être mesurée, et cela dès l'Ex Ante, l'entreprise devant en permanence donner à voir l'effectivité de la performance des outils de la Compliance.

Mais autant les normes prolifèrent, les discours se multiplient, les engagements sont pris, autant les techniques de mesure de l'effectivité de l'ensemble semblent assez faibles. Non pas que les sujets de droit astreints aux obligations de Compliance ou désireux de réaliser les buts systémiques ou de bien commun visés par la Compliance ne désirent pas en avoir, mais ces instruments de mesure semblent encore les moins construits, souvent déclaratifs ou de type discursifs, ou trop mécaniques. Dès lors, est-ce en partant du but que l'on cherche à atteindre que l'on doit mesurer l'efficacité des outils de Compliance, sans que cela transforme les tâches qui pèsent de grè ou de force sur les opérateurs en obligation de résultat ? Ou est-ce en demeurant en amont, par une seule "conformité" à ce qui leur est demandé, comme comportement et comme organisation structurelle, que les entreprises donnent à voir qu'elles ont effectivement rempli leur tâche, sans plus se soucier des effets produits sur la réalité des choses, cette réalité que ceux qui ont conçu la norme avaient en tête ?

Cette question a des implications majeure en terme de charge de preuve et de responsabilité, impliquant des organisations plaçant la confiance, coeur de la Compliance, plutôt dans des instruments technologiques connectant des data ou plutôt dans des personnes ayant le sens du bien commun. Cette question est aujourd'hui ouverte.

 

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Jan. 24, 2020

Thesaurus : Autorité des Marchés Financiers (A.M.F.)

Jan. 17, 2020

Publications

This Working Paper written in English is the basis for an article published in French in the French journal Dalloz Avocat , in March 2020.

 

 

 

Summary of the working Paper.

If we perceive Compliance Law as an aggression of the private company and a binding set of mechanisms that have no meaning and added value for it, then the attorney has a utility: defending the business. It can do so not only during the sanctions phase, but also to prevent it.

But this function is not central.

It becomes so if we understand Compliance Law as a body of substantial rules, pursuing a "monumental goal": the protection of the person, goal injected by political bodies and taken up by the operator. From this, the company must convince everyone to take it back, inside the company and outside. In a general and contradictory debate, the attorney carries this conviction, because he and she is always convincing those who at the end judge (market, public opinion, etc.) that is their raison d'être.

 

(In this short document, the pop-ups refer to the different works that develop each of the points)

Dec. 24, 2019

MAFR TV : MAFR TV - case

Watch the video commenting on the decision of the Commission des sanctions of the Autorité des marchés financiers - AMF (French Financial Market Authority Sanctions Commission).

Read the decision.

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In 2015, a document supposedly emanating from the Vinci company reached the Bloomberg media announcing unexpected catastrophic results. The two journalists who received it immediately published it without checking anything, the Vinci listed shares losing more than 18%. It was a rude forgery, which a basic check would have established, a check which the journalists had not done.

4 years later, the Bloomerg company is punished for the breach to "disseminate false information" on the financial market, by a decision of the Sanctions Commission of the Autorité des Marchés Financiers (French Financial Markets Authority) of December 11, 2019.

The company being sued argued that it was up to journalists to be accountable and not to itself, because on the contrary the firm had implemented both detection software and a code of conduct, even though there was no legal rule constraining it. In consequence, it would not possible to pursue it.

But the AMF Sanctions Commission stresses that, independently of this, it is a general rule of ethics for journalists that obliges them to verify the authenticity of the documents they publish, which they did not, whereas an elementary check would have allowed them to measure that it is a rude forgery.

In addition, the Sanctions Commission refers to the European Regulation on market abuses which in its article 21 targets the special status to be reserved for press freedom and the special status of journalists, but associates this ethical obligation to verify documents . However, the Sanctions Commission notes that this obligation, which was targeted by both the journalists' ethics and the reference text of Financial Law, was completely ignored by the two journalists. It is therefore up to the press agency to be accountable and to be punished.

However, the media entreprise maintained that the balance between the principle of freedom of the press and the principle of freedom of opinion on the one hand and the principle of the protection of the financial market and of investors against false information disseminated requires an interpretation of the European Union Law, which must oblige the Sanctions Commission to ask a preliminary question to the Court of Justice of the European Union.

The Sanctions Commission dismisses this request because it considers that the European texts are "clear", which allows the Sanctions Commission to interpret them itself. And precisely the European Regulation on market abuse in its article 21 provides for the exception in favor of the press and journalists but compels them to respect their ethics, in particular the verification of the authenticity of documents. In this case, they did nothing. They are clearly the authors of a breach attributable to the company.

________

In a less clear case, one could consider that this balance between two principles, both of public interest, is delicate and that an interpretation by the Court of Justice would always be useful.

Indeed and more fundamentally, does Financial Law remain an autonomous Law, putting first the objective of the preservation of the integration of the financial market and the protection of investors or is it the advanced point of an Information Law protecting everyone against the action of any "influencer" (category to which Bloomberg belongs) consisting in disseminating inaccurate information (notion of "misinformation")?

And that is not so "clear" ....

 

_____________________

Dec. 18, 2019

Publications

Référence complète : Frison-Roche, M.-A., Le maniement de la propriété intellectuelle comme outil de régulation et de compliance, in Vivant, M. (dir.), Les Grands Arrêts de la propriété intellectuelle, 3ième éd., 2019, 9-11, p.43-53.

This contribution is written in French.

Summary

Intellectual Property, which comes from the State and is incorporated into public policy, can be designed not to reward the creator a posteriori, but to encourage others to innovate. It is then an Ex Ante regulatory tool, an alternative to the subsidy. If private copying is an exception, it is not in relation to the principle of Competition but in an insertion into a system of incentives, starting from the costs borne by the creator of the first innovation: the rights holder is then protected , not only according to a balance of interests involved but in order not to discourage innovative potentials and the sector itself. (1st decision) ;

The sectoral policy then permeates Intellectual Property, used to regulate a sector, for example that of the drug. While it is true that a laboratory wishing to market a generic drug did not wait for the expiration of the patent for the original drug to do so, it is however not relevant to sanction this anticipation by a few days because the investments made by the holder of the Intellectual Property right have been made profitable by this one and because the public authorities favor the generics in a concern of public health (2nd decision).

Systemic interest prevails and therefore Internet service providers have to bear the costs of blocking access while they are irresponsible because of the texts. This obligation to pay is internalized by Compliance Law because they are in the digital system best able to put an end to the violation of Intellectual Property rights which the ecosystem requires to be effective. (3rd decision).

 

Read the contribution (in French).

 

Read the Working Paper written in English having served as a basis for this contribution and endowed with additional developments, technical references and hypertext links

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Dec. 12, 2019

Conferences

Référence : Frison-Roche, M.-A., La sanction comme incitation dans les techniques de compliance, in Faculté de droit de l'Université Toulouse-Capitole,   Journal of Regulation & Compliance (JoRc),Les incitations, outils de la Compliance, 12 décembre 2019. 

 

Résumé de la conférence

La Compliance ne se réduit pas à une méthode d'efficacité du Droit. Sinon il convient de l'appliquer à toutes les branches du Droit, ce que l'on ne fait pas. Mais même substantiellement défini, en ce qu'il est un prolongement du Droit de la Régulation, internalisé dans des "opérateurs cruciaux", délié ainsi de la détermination préalable d'un secteur, il conserve la nature téléologique de celui-ci. Le Droit qui est aussi un outil ne devient plus alors que cela, puisque la norme est placée dans le but.

Le renversement du traitement juridique de la matière pénale par la théorie appliquée des incitations

On observe très souvent que le Droit de la Compliance a pour cœur des sanctions, auxquelles Droit, dans son exercice inhérent de qualifié, donne le nom qui correspond à la chose : la "matière pénale". Logiquement, comme pour le droit pénal, qui n'est que la forme juridique de la matière pénale, le régime juridique devrait être le même que le Droit pénal. Mais il n'en est rien en raison de l'application de la théorie des incitations. De cela, les juristes et les juges n'en reviennent pas et c'est pourquoi il y mettent des limites que les tenants de la théorie des incitations n'admettent pas. Cela ne tient pas de la simple technique, de tel ou tel cas, mais de l'opposition de fond. En effet, pour le Droit pénal, celui-ci a vocation à être "autonome" dans le système juridique, c'est-à-dire développe des notions et des régimes qui lui sont propres parce qu'il est une exception légitime au principe de liberté auquel il rend par essence hommage et ne saurait se définir autrement, tandis qu'insérée dans la notion "d'incitation" la technique de la sanction n'intègre en rien cela et se contente d'emprunter à l'efficacité de la dureté pénale pour rendre efficace la règle sous-jacente ainsi dotée, la sanction étant ainsi et par un semblable effet de nature dans une parfaite dépendance. Il y a donc à première vue opposition de fond entre "sanction" et "incitation" alors qu'intuitivement frapper fort est si "commode et dissuasif" lorsqu'on veut obtenir d'une entreprise tel ou tel comportement..

En effet, certes la perspective d'une sanction en Ex Post en cas de manquement est la meilleure incitation à l'obéissance en Ex Ante à la norme d'interdiction et de prescription. C'est pourquoi le droit financier le plus libéral est également le plus répressif, l'analyse économique du droit conduisant à calculer des normes qui amènent l'agent à ne pas avoir intérêt à commettre un manquement. A l'obéissance se substitue l'intérêt. Le Droit de la concurrence et le Droit des marchés financiers en sont à ce point familiers que certains ont douté de la juridicité. 

Mais cela produit aussi des chocs en retour très importants, dans une méconnaissance assurée des principes, pourtant de valeur constitutionnelle, constituant la base de la matière pénale. On peut en dresser la liste :

  • des sanctions qui ne sont plus l'exception mais l'ordinaire, le cœur dans les régulations des marchés et le droit des entreprises supervisées, contraire aux principes économiques libéraux 
  • des sanctions d'autant plus élevées qu'elles sont négociables en échange de ce que veut la puissance publique : ainsi la pénalisation n'exclut en rien la contractualisation, au contraire elle en est un sous-outil entre les mains de l'autorité administrative ou politique de poursuite 
  • des sanctions qui sont conçues indépendamment des principes procéduraux, le couple "droit pénal/procédure pénale" perdant son intimité 
  • des sanctions qui sont échangées contre des preuves (programmes de clémence, qui sont des outils de Compliance)  
  • des sanctions qui ne sont pas arrêtées par le temps : application immédiate et rétroactivité dans le temps
  • des sanctions qui ne sont pas arrêtées par l'espace : extraterritorialité de l'application des sanctions 
  • des sanctions contre lesquelles, la matière pénale étant indissociable de la façon de les appliquer ("Procédure pénale") les entités aptes à en répondre devant justifier leur comportement et non être présumées conformes dans celui-ci  
  • des sanctions qui se cumulent pour un même fait si cela est efficace ;
  • l'abandon des notions classiques d'intentionnalité et de causalité, puisque le raisonnement est fonctionnel et non causal. 

Cela est-il admissible ? 

Non car en premier lieu dans une conception classique du Droit pénal c'est une succession de principes constitutionnels qui sont méconnus et les juges vont bloquer un Droit de la Compliance dont le seul principe serait l'efficacité : le Droit ne peut être un seul "outil d'efficacité", sauf à n'être plus le Droit. Le Droit pénal est un outil d'inefficacité parce qu'il se définit comme une exception légitime à la liberté des êtres humains et donc le gardien de ce principe de liberté, ce qui est étranger à la théorie des incitations, mais lui est supérieur et bloque les effets déroulés par celle-ci.

Non car en second lieu  dans une conception trop étendue de la Compliance, consistant à l'appliquer à toutes les règles dont on voudrait qu'elles soient effectives parce que celui-ci qui les a émises le veut, ce qui voudrait pour toutes les règles, même celles qui ne sont pas d'ordre public. Dans une telle "passion pour la Réglementation" mettant fin au libéralisme et au Droit,  les sanctions permettent à une Autorité publique d'imposer en Ex Ante avec l'accord des intéressés ce qu'il veut, comme on peut le voir en Asie, la répression passant en Ex Ante se transformant en rating et obtention volontaire d’obéissance pour toute prescription. 

Oui si l'on définit correctement le Droit de la Compliance dans un seul lien avec des "buts monumentaux" qui seuls peuvent justifier la violence des mécanismes de sanction, en tant qu'il est le prolongement du Droit de la Régulation. La Régulation de l'économie est plus que jamais nécessaire, alors que les Etats n'ont plus de prise. Par l'internalisation dans les entreprises, si des "buts monumentaux" sont visés et contrôlés, alors le caractère restrictif de la matière pénale passe de l'outil au but : seuls les buts monumentaux peuvent justifier tous les effets précédemment décrits, mais ils le justifient.  

L'enjeu est donc de redessiner le principe restrictif des sanctions non plus en celles-ci mais dans le but de Compliance servi par celles-ci.  Par ce passage de la conservation de la nature restrictive de la sanction, non plus dans l'outil-même de la sanction mais dans le but servi par celle-ci. Non pas n'importe quelle règle, comme dans certains pays, non pas toutes les règles de ce que l'on appelle d'une façon trop extensive la Compliance, qui est juste le "fait d'obéir aux normes applicables".

Ainsi et par exemple, l'application extraterritoriale de normes nationales répressives adoptées dans un seul but national (embargo) est inadmissible et doit être rejetée par les Tribunaux, alors que cette même application extraterritoriale de normes pour lutter contre le blanchiment d'argent est admissible et pratiquée par tous. Suivant la nature du risque combattu, le terrorisme par exemple, le régime de la sanction est ou n'est pas légitime. 

D'une façon plus générale, les "buts monumentaux" qui donnent au Droit de la Compliance sa définition substantielle, alors que beaucoup réduisent encore la Compliance à une simple méthode d'efficacité, voire n'y voient rien de juridique, permettent de distinguer là où la sanction doit être un outil plus ou moins violent pour atteindre le but en raison de la légitimité de celui-ci, du phénomène caché qu'il s'agit de combattre (par exemple terrorisme ou blanchiment) ou du caractère global (par exemple risque environnemental).

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Dec. 11, 2019

Publications

This working document serves as the basis for the conference given in the symposium made under the direction of Lucien Rapp, Les incitations, outils de la Compliance

Référence : Frison-Roche, M.-A., Compliance et Incitations : un couple à propulser, in Faculté de droit de l'Université Toulouse-Capitole, et Journal of Regulation & Compliance (JoRc),Les incitations, outils de la Compliance, 12 décembre 2019, Toulouse. 

Consult the slides used as a basis for the conference.

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Summary.

The so-called incentive theory targets mechanisms that do not directly use coercion but nevertheless obtain the desired behaviors for those who set up the devices. The working document procedure in three stages.

At first, the association seems natural between the incentive mechanisms and the "Compliance Law" defined in a dynamic way. Indeed if we define it as placing its legal normativity in the "monumental goals" that it pursues, such as the disappearance of corruption, the detection of money laundering so that the criminality which is under it disappears underlying, or as the effective protection of nature or the concrete concern of human beings, then what counts is not the means in themselves but to tend effectively towards these "monumental goals. For this, what was previously public policies led by the States, because they are definitely not in a position to do so, the burden is internalized in the companies which are able to strive towards these goals: the "crucial operators", because they have the surface, the technological, informational and financial means.

In this perspective, the internalization of the public will causing a split with the state form linked to a territory which deprives the Politics of its power of constraint, the incentive mechanisms appear as the most effective means to achieve these monumental goals. They appear both negatively and positively. Negatively in that they do not require in Ex Ante clearly identifiable and localized institutional sources and no more in Ex Post of power of sanction. Interest replaces obligation. Positively, the incentives are relayed through the operators' strategies, which was the so often criticized form of public action: the "plan". Duration is thus injected thanks to the Compliance mechanism, as we can see through its development in the interest of the environment ("Climate Plan"), or through the education mechanism, which is only conceived over time.

However, in a second step, the opposition seems radical between Compliance Law and Incentives. This stems from three convictions, as strong as they are probably inaccurate. In the first place the idea that in general there is a Law only if there is a mechanism of immediate constraint which is attached to the norm. A law currently in the course of adoption shows it with envi ... As soon as the incentive would not rest on the obligation, then it would be nothing ... In the second place, and as if that were a kind of consolation ..., Compliance either would not be Law either ... It is so often said that it is only a process, without meaning, procedures to follow without trying to understand, that algorithms integrate into endless and meaningless mechanics. While the incentives are addressed to the human mind, Compliance would be a process by which machines would connect to other machines ... Third, the alpha and omega of Digital Law would be in the Competition law, because it can do without States, subject them and apprehend what is a-sectoral, in particular finance and digital, because the world is now financialized and digitalized. The violence of Competition Law which goes back in Ex Ante thanks to "compliance sanctions" by applying in particular the essential facilities while continuing to deny the relevance of the duration and taking as concern "market power" is incompatible with a coupling with incentive mechanisms that are based on duration and power, converging towards goals determined by what the Competition Law aims to ignore: the project, that of the Politics and that of the company , who use their power deployed over time to make it happen.

It is therefore necessary, in a third step, to modify our conception of the Law, in particular thanks to the Law of Compliance, in that it is autonomous from the Law of Competition, so that the insertion of the incentive mechanisms allow organizations little known by it. ci to achieve monumental goals which it is imperative today to claim. For example the Climate. This is expressly stated by the European Commission. All the texts that are expressing it are based on this reformed couple: Compliance and Incentive. This couple supposes that we recognize as such the existence of companies as they carry a project, which is other than the creation of market wealth circulating on a market, which can be an industrial project specific to an area. both economic and political. The Regulation then detaches itself from the concept of sector and is transformed into supervision of the crucial companies in the correspondence between the project and the action, which returns to the concept of "plan". In this the banking supervision is only the advanced bastion of all the energy plans or more generally industrial and technological being able by incentive to be set up, this conception of the Compliance making it possible to build zones which are not reduced to the exchange instant merchant. The incentive corresponds to the fact that Compliance Law relies on the power of the company to achieve its own political goals, for example combating disinformation in the digital space or obtaining a healthy environment. This supposes that Compliance ceases to be conceived only as a mode of effectiveness of the rules, for example of Competition Law, to be recognized as a substantial branch of Law. A branch that expresses political goals. A branch that is anchored in crucial companies whose autonomy it recognizes in relation to the markets. This allows, in particular by the culprit with the incentive mechanisms leading to long-term collaborative operations supervised by public authorities, not to be governed by simple competition law, unfit to materialize projects.

See the intervention plan below.

 

Dec. 5, 2019

MAFR TV : MAFR TV - case

Watch the video explaining the content, meaning and scope of the decision made by the Conseil d'Etat (French Council of State) on November 15, 2019, La Banque Postale v. Autorité de contrôle prudentiel et de résolution (ACPR).

The Autorité de contrôle prudentiel et de résolution - ACPR (French Authority of prudential control and resolution) pronounced a very high sanction, representing 7% of La Banque Postale's net annual result. The breach is constituted by the fact of not having prevented the use of the banking technique of the "money order" which was used to escape the freezing of the assets.

The Conseil d'Etat recalls that by nature if the assets are frozen, it is not possible that anyone is able to dispose of these assets. However, by the use of "money orders", persons targeted by asset freezing decisions, tools used in connection with the fight against money laundering and the fight against terrorism, had been able to circulate money to from accounts managed by La Banque Postale, of which they were not customers.

This case was not foreseen at the time when the Bank Postale was sanctioned by the ACPR for not having prevented such a use, the texts forcing it under its obligations of "conformity" to prevent this behavior of violation background gels on the part of his customers, but only that.

This case of a use of a means by a person who is not a customer of the bank was not foreseen at the time when the alleged facts took place and the Bank claims not to be able to be punished since in the repressive matter it is necessary to respect the principle of non-retroactivity of the texts, - in this case texts later supplemented to aim at such an assumption -, the non-retroactivity being a major principle itself related to the principle of the legality of the offenses and the penalties.

We are therefore in the hypothesis of a silence of the texts.

What to decide? Can the Bank be condemned and so heavily or not by the ACPR?

The Bank does not think so. 

It acted against this sanction decision firstly because those who used these money orders were not its clients. It has strong reasons to avail itself of this fact, since subsequently the texts needed to be modified to aim not only the use of this technique of money order by those who have a count in the bank and also by those who act with cash through the bank without a count, that is to say without an account holder to look at. Because we are in criminal matters, the restrictive interpretation and non-retroactivity of the text should lead to follow the reasoning of the Bank. But the Conseil d'Etat does not because it considers that implicitly but necessarily even with this subsequent modification of the text, it had aimed that use before.

By this way, the Conseil d'Etatuncil develops a very broad concept of the obligations of banks in their role in the fight against money laundering, and therefore a very repressive point of view, which permeates their "obligation of Compliance". Thus, when the bank also argues that it can not be sanctioned since for it this activity of money order is  deficit and that it did not cause harm to its customers even by assuming badly its obligations, theConseil d'Etat stresses that this is not a pertinent perspective since the Compliance obligations falls within the "overriding general interest of protection of public order and public security, to which the freezing of assets legislation responds".

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Read the  judgment of the Conseil d'Etat ( in French). 

Dec. 4, 2019

MAFR TV : MAFR TV - case

Regarder le film de 5 minutes sur le contenu, le sens et la portée de l'arrêt rendu par la première chambre civile de la Cour de cassation du 27 novembre 2019, M.X.A. c/ Google.

 

 

Cet arrêt casse l'arrêt de la Cour d'appel de Paris qui valide le non-déférencement, après que la CNIL a demandé l'interprétation des textes, notamment du RGPD, parce que le droit à l'oubli doit limiter l'exception ici invoquée, à savoir le droit à l'information, même s'il s'agit d'une décision pénale concernant un commissaire-aux-comptes, car il s'agit d'une affaire privée et non pas ce qui concerne l'exercice de sa profession réglementée coeur du système financier. 

 

 

Lire la décision de la Première Chambre civile de la Cour de cassation du 27 novembre 2019, M.X.A. c/ Google