France's Financial Markets Authority published an investor guidance note on how to invest savings held in workplace schemes, including company savings plans (PEE) and collective retirement savings plans (collective PER or Perco). It explains how to choose between available investment funds by aligning investment choices with the saver’s objective, time horizon and risk tolerance, and flags that each plan should offer at least one labelled fund (solidarity, socially responsible or green) with criteria that investors should check. The note sets out that schemes typically offer a range of investment funds (FCPEs and SICAVs) invested in equities, bonds or money-market instruments, with higher equity exposure generally implying higher risk. For PEE investors seeking high certainty of accessing their savings when available, it points to money-market, bond or “prudent” funds, while longer horizons may support higher equity allocations via “balanced”, “dynamic” or 100% equity funds. In collective PERs, where the horizon is retirement, contributions are automatically allocated to a diversified “pilot” management option if the saver does not specify choices, with the equity share increasing the further the saver is from retirement. It also encourages regular monitoring, internal arbitrage to adjust allocations when circumstances change, and careful reading of each fund’s key information document.
France Autorite des marches financiers 2025-03-17
France's Financial Markets Authority publishes guidance on investing and monitoring employee savings plans
France's Financial Markets Authority issued guidance on investing savings in workplace schemes like company savings plans (PEE) and collective retirement savings plans (collective PER or Perco). The note advises aligning investment choices with objectives, time horizon, and risk tolerance, highlighting the requirement for each plan to offer at least one labelled fund. It outlines investment fund options, emphasizing regular monitoring and internal adjustments.