In a mediator case note, France's Financial Markets Authority clarified that for a PEA-PME, the issuer size criterion for share eligibility is assessed when the shares are acquired. If the issuer later exceeds the relevant thresholds, that does not make the existing holding ineligible. In the case presented, an account keeper accepted that it had wrongly told a client to sell shares after the transfer of his plan. The note points to French tax guidance and the Monetary and Financial Code, under which the size test is assessed using data from the issuer's penultimate closed financial year before the acquisition date. In the case reviewed, the client showed that the issuer met the thresholds when he bought the shares, even though it later grew beyond them. The account keeper acknowledged a service failure and offered to cancel the sale made in November 2025, reimburse brokerage and commission fees, and pay compensation. The mediator recommended accepting that proposal, which the client did. The mediator also stressed that this timing exception is specific to the issuer size criterion in a PEA-PME. Other eligibility conditions generally must continue to be met throughout the holding period and can in principle trigger closure of the plan if breached, although tax guidance allows regularisation within two months by selling the securities within the plan or transferring them to an ordinary securities account with a matching cash payment.
France Autorite des marches financiers2026-06-10
France's Financial Markets Authority mediator clarifies PEA-PME issuer size eligibility is assessed at acquisition
The French Financial Markets Authority mediator clarified that for PEA-PME plans, the issuer size criterion for share eligibility is assessed at acquisition using data from the issuer’s penultimate closed financial year, and a later breach of size thresholds does not affect existing holdings. In the case reviewed, an account keeper admitted error in instructing a client to sell such shares and agreed to cancel the sale, refund fees and pay compensation, which the mediator endorsed. The mediator added that this timing exception applies only to the size criterion, while other eligibility conditions must generally be met throughout the holding period.