France: Financial Transaction Tax (FTT)

12.04.2024

Note: This information presented here does not give any legal or tax advice. The legal obligations of Clearstream Banking1 and the client set out herein are based on external local legal advice taken by Clearstream Banking. Clearstream Banking offers certain services to its clients in relation to the French FTT Law, which are set out below.

Definitions

The following expressions bear the following meanings unless the context otherwise requires. Any other capitalised terms and expressions used herein that are not specifically defined in Clearstream Banking’s Governing Documents shall have the meaning given in the Clearstream Banking Governing Documents:

“Attorney” means the company appointed by the client in accordance with the power of attorney2.

“Authenticated Message” means a communication that is sent using Xact Web Portal and/or Xact File Transfer by the client (and/or the Attorney, as the case may be) and Clearstream Banking.

“Authorised Person” means, with respect to the client (and/or the Attorney, as the case may be), any such person duly authorised by it to give instructions or notices on its behalf, such persons and their specimen signatures to be provided by the client (and/or the Attorney, as the case may be) from time to time to Clearstream Banking.

“Business Day” means any day, other than Saturday, Sunday or a day marked as a public holiday in the public holiday calendar of Clearstream Banking.

“Clearstream Banking Declaration Deadline” has the meaning as set out in section 3.1.

“Custodian of the Purchaser” means the securities account holder (teneur de compte-conservateur) of the Purchaser.

“Client” means any client3 of Clearstream Banking.

“Euroclear France” means Euroclear France S.A.

“Euroclear Member” means a member of Euroclear France.

“FMFC” means the French Monetary and Financial code (Code monétaire et financier).

“French Tax Code” means the French fiscal code (Code général des impots).

“FTT” means the French Financial Transaction Tax pursuant to Article 235ter ZD of the French Tax Code, as amended by the FTT Law.

“FTT Declaration” is the declaration provided by the client pursuant to its legal obligations under the FTT law and in accordance with this document.

“FTT Declaration Format” means the French FTT declaration format as set out in Appendix 1 to this document.

“FTT Law” means law no. 2012-354 of 14 March 2012 and law no. 2012-958 of 16 August 2012 (and as may be amended from time to time).

“Investment Service Provider” or “ISP” means investment services provider having executed the relevant purchase order on behalf of a client or having acquired the Taxable Securities for its own account. For this purpose, an ISP is an entity that is licensed to provide the investment services listed in Article L. 321-1 of the FMFC (that is, investment services4 within the meaning of the MiFiD Directive5).

“Purchaser” means the person who becomes the legal owner of the Taxable Security in the taxable acquisition of such security, as opposed to the person who executes the purchase order. “Relevant Information” means information regarding:

  1. The client:
    a. Name, BIC Code, and VAT number or identity number (as referred to in Article R. 123-221 of the French Commercial Code);
    b. Address of corporate seat or principal establishment;
    c. Euroclear code of the Euroclear Member through which the FTT is paid;
  2. Information regarding the Taxable Transaction:
    a. ISIN code of Taxable Securities;
    b. Trade date;
    c. Settlement date;
    d. Reference of the transaction in the taxpayer’s internal management system or, where some of the transactions do not give rise to a transfer of ownership and only the net long position of the Purchaser is subject to the tax, the reference given to this net long position;
    e. Value of the transactions, which means the number of Taxable Securities multiplied by the unit value of the Taxable Securities;
    Where some of the transactions do not give rise to a transfer of ownership and only the net long position of the Purchaser is subject to the tax, the amount of the acquisitions is equal to the number of Taxable Securities whose ownership is transferred multiplied by the average value of the Taxable Securities acquired during the period at the end of which the net long position is calculated. The net long position used as a base for the tax is calculated for a given security and for each Purchaser, excluding exempt acquisitions as provided in II of Article 235 ter ZD of the French Tax Code and the sales associated with those exemptions.
    The Taxpayer takes the number of Taxable Securities of a company liable for the tax, as defined by I of Article 235 ter ZD of the French Tax Code, and acquired by a Purchaser during a period and then subtracts the number of Taxable Securities of that company sold by the same Purchaser during the same period.
    The resulting number, which corresponds to the number of Taxable Securities whose ownership is transferred to the Purchaser, is multiplied by the average unit price of non-exempt acquisitions of the security during the period at the end of which the net long position is calculated.
    The sum of the net long positions calculated in this manner for each security and each Purchaser shall form the Taxpayer’s tax base.
    f. Where applicable, category of exemption;
    g. Any corrections made to the amounts originally notified; and
    h. The amount of FTT due;
     
  3. Any information to be provided as set out in the FTT Declaration Format.

“Taxable Securities” means equity securities or assimilated instruments: shares, preference shares, investment certificates, voting right certificates, share warrants, and other assimilated equity instruments (including, for trades as from 1 December 2012, American Depository Receipts and similar certificates representing shares issued by French companies), as set out in Articles L. 212-1 A and L. 211-41 of the FMFC, as well as convertible and exchangeable bonds.

“Taxable Transaction” means a transfer of ownership for value in Taxable Securities pursuant to Article 235ter ZD of the French Tax Code.

“Taxpayer” means the person legally liable (redevable) to the FTT that is either the Investment Service Provider involved in a trade on Taxable Securities or the Custodian of the Purchaser when no ISP is involved.

“Total Tax Amount” means the amount to be paid by the Taxpayer according to its Taxable Transactions.

FTT Law and resulting obligations for Clearstream Banking and the Client

Scenario 1:

If the trade settles in the books of Euroclear France, the rules of section VII, paragraph 1, of Article 235 ter ZD of the French Tax Code apply: the Taxpayer shall provide Euroclear France with the relevant information on the transaction before the 5th calendar day of the month following the transaction and shall designate the Euroclear Member on the account to which the Total Tax Amount will be debited.

a) Legal obligations of Clearstream Banking: When Clearstream Banking is the Taxpayer in its capacity as the Custodian of the Purchaser of the Taxable Securities (the Purchaser being the client), Clearstream Banking is under the legal obligation to provide Euroclear France with the Relevant Information for the Taxable Transactions and to pay the Total Tax Amount.

Contractual obligations of the client towards Clearstream Banking: The client shall provide Clearstream Banking with the Relevant Information on the Taxable Transactions and ensure that the Total Tax Amount is credited to the account mentioned on its FTT Declaration in due time before the Clearstream Banking Declaration Deadline.

b) Legal obligations of the client: If the client is the Taxpayer, it shall provide Euroclear France with Relevant Information on the Taxable Transactions and it shall pay the Total Tax Amount.

Services provided by Clearstream Banking to its client: The client may provide its FTT Declaration along with the Total Tax Amount to Clearstream Banking and Clearstream Banking shall provide the FTT Declaration to Euroclear France and pay the tax amount.

Contractual obligations of the client towards Clearstream Banking: The client shall ensure that the Total Tax Amount is credited to the account mentioned on its FTT Declaration in due time before the Clearstream Banking Declaration Deadline.

Scenario 2:

If the trade settles in the books of a Euroclear Member, the rules of section VII, paragraph 2, of Article 235 ter ZD of the French Tax Code apply: the Euroclear Member shall provide the Relevant Information to Euroclear France before the 5th calendar day of the month following the transaction and, pursuant to section IX of the same Article, the Taxpayer shall pay the Total Tax Amount to this Euroclear Member, who forwards the payment to Euroclear France.

Legal obligations of Clearstream Banking: If the trade settles in its books, and as a Euroclear Member, Clearstream Banking is under the legal obligation to provide the Relevant Information for the Taxable Transactions to Euroclear France.
When Clearstream Banking is the Taxpayer in its capacity as the Custodian of the Purchaser of the Taxable Securities (the Purchaser being the client), Clearstream Banking shall pay the Total Tax Amount to the Euroclear Member.

Services provided by Clearstream Banking to its client: If the trade settles in its books and Clearstream Banking is not the Taxpayer, the client may provide its FTT Declaration along with the Total Tax Amount to Clearstream Banking and Clearstream Banking shall provide the FTT Declaration to Euroclear France and pay the tax amount.

Contractual obligations of the client towards CB: The client shall provide Clearstream Banking with the Relevant Information on the Taxable Transactions and ensure that the Total Tax Amount is credited to the account mentioned on its FTT Declaration in due time before the Clearstream Banking Declaration Deadline. 

Scenario 3:

If the trade settles in the books of a client of a Euroclear Member, the rules of section VII, paragraph 3, of Article 235 ter ZD of the French Tax Code apply: the client of the Euroclear Member shall provide the Relevant Information to such Euroclear Member, which then passes on this information to Euroclear France before the 5th calendar day of the month following the transaction. The Taxpayer pays the Total Tax Amount to this Euroclear Member, which in turn pays it to Euroclear France.

a) Legal obligations of Clearstream Banking: When Clearstream Banking is the client of a Euroclear Member and the Taxable Transaction settles in Clearstream Banking’s books, Clearstream Banking is under the legal obligation to provide the Relevant Information on the Taxable Transactions to the Euroclear Member/France.

When Clearstream Banking is the Taxpayer in its capacity as the Custodian of the Purchaser of the Taxable Securities (the Purchaser being the client), Clearstream Banking is under the legal obligation to pay the Total Tax Amount to Euroclear France.

Contractual obligations of the client towards CB: The client shall provide Clearstream Banking with the Relevant Information on the Taxable Transactions and ensure that the Total Tax Amount is credited to the account mentioned on its FTT Declaration in due time before the Clearstream Banking Declaration Deadline.

b) Legal obligations of the client: If the client is the client of the Euroclear Member (Clearstream Banking being the Euroclear Member), the client is under the legal obligation to provide Clearstream Banking with the Relevant Information on the Taxable Transactions.

If the client is the Taxpayer, such client is under the legal obligation to pay the Total Tax Amount to the Euroclear Member.

Services provided by Clearstream Banking to its client: The client may provide its FTT Declaration along with the Total Tax Amount to Clearstream Banking and Clearstream Banking shall provide the FTT Declaration to Euroclear France and pay the tax amount.

Contractual obligations of the client towards CB: The client shall provide Clearstream Banking with the Relevant Information on the Taxable Transactions and ensure that the Total Tax Amount is credited to the  account mentioned on its FTT Declaration in due time before the Clearstream Banking Declaration Deadline.

Scenario 4:

The trade settles in the books of a person other than Euroclear France, a Euroclear Member or a Euroclear Member’s client: the Taxpayer pays the Tax and provides the Relevant Information directly to the French Treasury (the Large Corporations Division) before the 25th calendar day of the month following the transaction or can elect to pay the Tax and provide the required information through a Euroclear Member it chooses to appoint, the latter shall provide the Relevant Information to Euroclear France before the 5th calendar day of the month following the transaction.

Legal obligations of the client: If the client is a Taxpayer and has appointed Clearstream Banking as the Euroclear Member, it shall provide Clearstream Banking with the Relevant Information on the Taxable Transactions and pay the Taxable Amount to Clearstream Banking.

Services provided by Clearstream Banking to its client: The client may provide its FTT Declaration along with the Total Tax Amount to Clearstream Banking and Clearstream Banking shall provide the FTT Declaration to Euroclear France and pay the tax amount.

Contractual obligations of the client towards CB: The client shall provide Clearstream Banking with the Relevant Information on the Taxable Transactions and ensure that the Total Tax Amount is credited to the  account mentioned on its FTT Declaration in due time before the Clearstream Banking Declaration Deadline.

Representations of the client

The client warrants and represents to Clearstream Banking that it shall:

  • Assess and determine whether it is a Taxpayer, the Custodian of the Purchaser, the Purchaser, a Euroclear Member or a client of a Euroclear Member in a Taxable Transaction;
  • Comply with its legal obligations under the FTT law;
  • Comply with its contractual obligations towards Clearstream Banking pursuant to this document.

FTT Declaration upload and payment processing

General

Clients have the possibility to send a single monthly declaration before the Clearstream Banking Declaration Deadline or several declarations throughout the month of acquisition. A standard file and record layouts have been defined by Euroclear France to report Taxable Transactions on Taxable Securities.

  • Clients shall send the FTT declaration(s) to Clearstream Banking via the communication media indicated below before 09:00 CET on the 4th calendar day of the month following the acquisition (the “Clearstream Banking Declaration Deadline”).
  • The client shall provide one FTT declaration per Taxpayer. Declarations for multiple Taxpayers or for multiple Euroclear France Member codes are not accepted by Euroclear France.
  • The FFT Declaration shall specify the Euroclear France Member code where the trade is executed.
  • Both taxable and exempted acquisitions must be declared. For exempted transactions, the Taxpayer shall provide the exemption reason (one of the nine reasons foreseen by the law).
  • Out-of-scope acquisitions are not declared.
  • If the client does not provide an exemption reason, the transaction shall be considered as taxable by Clearstream Banking.
  • The client may allow the upload of FTT Declarations by an Attorney; in this case the client shall provide Clearstream Banking with the duly executed power of attorney dedicated to the FTT Services6.

The French FTT Declaration Format is available below.

The declaration process will follow three steps:

  1. The message details with all mandatory information to be reported for each Taxpayer separately;
  2. Clearstream Banking validation feedback via Xact Web Portal and Xact File Transfer;
  3. Euroclear France’s validation feedback.

Each FTT Declaration is divided into two parts:

  1. A header providing the identification of the Taxpayer, the Total Tax Amount, the payment month, …;
  2. A list of individual transactions, their details and the relevant individual tax amount.

These FTT Declarations shall be sent in CSV format and each field will be separated by a semicolon (;) character.

In order to submit FTT Declarations in CSV format as required by Euroclear France and to download feedback provided by Euroclear France and Clearstream Banking, clients have the choice of two communications media:

  • Xact Web Portal
    • All Organisation Units (OU) that have access to the Tax Business Services automatically have the FTT Services added to their OU. The FTT product service is defined as follows:
      • The user can upload FTT Declarations as a CSV file.
      • There is no restriction on the number of files that the client can upload; a maximum of 20,000 transactions can be reported in one declaration file.
      • Pop-up messages are displayed if the declaration CSV file cannot be accepted by Xact Web Portal for formatting or syntactic reasons.
      • A declaration CSV file that is rejected by Xact Web Portal is not saved and no entry in the List View is displayed. However, if the file is accepted by Xact Web Portal but does not pass the business validation checks by the French FTT backend, the declaration file is saved and visible in Xact Web Portal.
      • Valid declaration files are sent to Euroclear France.
  • Xact File Transfer
    • All existing and new Xact File Transfer users that have the cash or securities input permission also have the permission to upload FTT Declarations.

Upon receipt of feedback from Euroclear France or the Tax Authorities, Clearstream Banking will report to clients the acceptance or rejection of their declaration files. Clients using Xact File Transfer to upload their declarations will be notified directly on Xact File Transfer about the status of their declaration, while clients using Xact Web Portal will have to actively visit the portal to monitor the status of their declarations.

Late declaration processing

If Clearstream Banking has received the file after the Clearstream Banking Declaration Deadline, the FTT Declaration will be considered as a late declaration.

In cases of late reporting, clients shall indicate the original payment month to any late declaration.

Example: In November 2013, the client identifies that the declaration for trades settled in March and May have not been reported. The client must send:

One declaration for the transactions settled in March with a payment month = April;  One declaration for the transactions settled in May with a payment month = June.

A late declaration shall include transactions with the related settlement month only; mixed declarations shall not be accepted by Clearstream Banking.

Update processing

An update is defined as a change brought by a Taxpayer to a transaction already reported to Euroclear France by Clearstream Banking. The purpose of an update can be:

  • To claim for a refund of an overpaid tax amount;
  • To regularise a previously declared transaction leading to an additional tax amount;
  • To amend a previously declared transaction (without any cash impact).

Euroclear France accepts updates on transactions already declared. The message format and life cycle are the same as for standard transactions. This process is managed through the use of the “Type of transaction” (field 15 of the declaration message):

Type

Definition

S

Standard

R

Regularisation of a previously declared transaction, resulting in an additional tax amount

C

Refund claim: Update of a previously declared transaction, resulting in a refund of an overpaid tax amount

A

Amendment: Update of a previously declared transaction, without impact on the tax amount

Updates (type R, C or A) shall have the same reference as the underlying transactions (field 14 in the declaration message).

According to the FTT Law, refund claims (type C) are recoverable until the 31 December of the second year following receipt of the declaration.

An FTT Declaration may include standard transactions and updates. Standard transactions and refunds can be netted without the need to send a separate claim to the tax authorities. In such cases, as long as the total amount declared remains as a debit, the FTT Declaration follows the standard process.

If the total amount of the FTT Declaration becomes a credit:

  • The Taxpayer is authorised to net this declaration with its other debit FTT Declarations of the same period but
  • If the sum of the FTT Declarations for that Taxpayer becomes a credit, a cash refund can only be obtained by contacting the tax authorities.

Validation check and penalties

  1. Clearstream Banking validation:

    A number of validation checks are performed by Clearstream Banking on the submitted FTT Declarations and a validation feedback is immediately provided to the client via Authenticated Message. The FTT Declaration will be considered as valid from Clearstream Banking’s point of view if the complete FTT Declaration has successfully passed all validation checks. If valid, the FTT Declaration will be immediately released to Euroclear France.

    Euroclear France will, in turn, report to Clearstream Banking the acceptance or rejection of the FTT Declaration. Euroclear France’s validation feedback will be forwarded to the Clearstream Banking client via Authenticated Message.

    If an FTT Declaration does not pass Euroclear France validation rules, Euroclear France will only report the first error. In order to align with Euroclear France’s feedback file format, Clearstream Banking will only report to the client the first error identified on the declaration.

    Any FTT Declaration rejected by Clearstream Banking and/or Euroclear France will have to be re-submitted to Clearstream Banking with a new declaration reference.
  2. Euroclear France validation:

    a) Consistency checks
    Euroclear France will perform a number of consistency checks on incoming files and payments and provide additional reporting to the tax authorities. Euroclear France may reject FTT Declarations if they fail consistency checks.

    b) Ex-post checks
    Euroclear France will perform ex-post checks after receiving the client’s FTT Declaration. Such checks may not lead to a rejection of the FTT Declaration. Based on Euroclear France’s reports, the tax authorities may consult the details of the FTT Declaration and decide to apply the penalties foreseen by the FTT Law for missing or incomplete information.

The tax authorities may levy penalties on incorrect or late reporting. These penalties will be claimed and raised directly by the tax authorities to the Taxpayer referenced in the FTT Declaration without Clearstream Banking involvement. However, as it cannot be excluded that Clearstream Banking will be contacted by the tax authorities for the application of these penalties, any potential charges incurred by Clearstream Banking will be passed on to the relevant client on an "upon receipt" basis.

Payment processing

a) Standard payment processing

On the payment date (4th calendar day of the month or next business day, if it falls on a weekend or bank holiday) Clearstream Banking will debit client accounts with the total tax amount mentioned on each FTT Declaration that successfully passed Clearstream Banking’s validations and for which Euroclear France has sent a positive FTT Status message:

  • If the debit is successful, Clearstream Banking will transfer the total tax amount on behalf of the client to Euroclear France.
  • If the debit fails, the declaration file will not be rejected, but the debit instruction will be recycled for 60 days, meaning that Clearstream Banking will transfer the total tax amount on behalf of the client to Euroclear France on the next business day following the day on which the debit is successfully settled.

Clearstream Banking therefore advises its clients to fund their accounts with the amount declared in due time when sending their declaration files.

A yearly French FTT calendar will be published in the annex of this announcement by Clearstream Banking, detailing the exact deadlines for each submission month.

b) Late payment processing

For late FTT Declarations that successfully passed Clearstream Banking’s validations and for which Euroclear France has sent a positive FTT Status message, Clearstream Banking will initiate the tax payment immediately in favour of Euroclear France without waiting for the next scheduled payment date, as follows:

  • For late and valid declarations received before 09:00 CET on a given date, Clearstream Banking will debit client accounts on the same date with the total of the tax amounts mentioned on each FTT Declaration:
  • If the debit is successful, Clearstream Banking will transfer the Total Tax Amount on behalf of the client to Euroclear France.
  • If the debit fails, the declaration file will not be rejected but recycled meaning that Clearstream Banking will transfer the Total Tax Amount on behalf of the client to Euroclear France on the next business day following the day on which the debit is successfully settled.
  • For late and valid declarations received after 09:00 CET on a given date, Clearstream Banking will debit client accounts on the day that immediately follows the receipt of the late and valid FTT Declarations:
  • If the debit is successful, Clearstream Banking will transfer the Total Tax Amount on behalf of the client to Euroclear France.
  • If the debit fails, the declaration file will not be rejected, but the debit instruction will be recycled for 60 days, meaning that Clearstream Banking will transfer the total tax amount on behalf of the client to Euroclear France on the next business day following the day on which the debit is successfully settled.

Clearstream Banking therefore advises its clients to fund their accounts with the amount declared in due time when sending their declaration files.

If a late declaration results in a late payment to Euroclear France, Euroclear France will charge Clearstream Banking for the corresponding loss of interest amounts and the related processing costs.

  • If the late payment is credited to Euroclear France after the 4th but before the 24th calendar day of the payment month, Euroclear France will charge Clearstream Banking for the actual number of days of delay (20 days maximum).
  • If the late payment is credited to Euroclear France on or after the 24th calendar day of the payment month, Euroclear France will invoice Clearstream Banking for 20 days.

Clearstream Banking will charge the client accordingly and the client authorises Clearstream Banking to debit its account with the same value date for any amounts charged to Clearstream Banking because of the client’s late payment.

The tax authorities require Euroclear France to report all late declarations and late payments. Indemnities, penalties or interest foreseen by the FTT Law against the taxpayer may be claimed and raised directly by the tax authorities to the taxpayer without Clearstream Banking involvement. However, as it cannot be excluded that Clearstream Banking will be contacted by the tax authorities for the application of these penalties, any potential charges incurred by Clearstream Banking will be passed on to the relevant client on an "upon receipt" basis.

c) Cash debit process

Clearstream Banking will debit client accounts with the total tax amount indicated on each declaration file that has passed Clearstream Banking's validations, and for which Euroclear France has sent a positive FTT status message.

If the debit fails, the debit instruction will be recycled for 60 days, and clients will be notified automatically via the defined communication channel as a reminder to fund their account with the total tax amount before the end of the 60-day recycling period.

After 45 days, and if the debit is still pending, clients will be automatically notified via the defined communication channel (MT940 or Xact File Transfer).

After 60 days, Clearstream Banking will stop recycling the debit instructions, without any further notice to clients. If clients have a declaration pending debit after the end of the 60-day recycling period, clients should contact Clearstream Banking Client Services or their Relationship Officer to find an arrangement and pay the FTT amount accordingly.

Clients will be liable for late payment interest if they do not pay the FTT amount in due time. The late payment interest will be claimed and charged directly by the tax authorities to the taxpayer named in the FTT return, with no involvement by Clearstream Banking. However, as it cannot be excluded that Clearstream Banking will be contacted by the tax authorities for the application of these penalties, any potential charges incurred by Clearstream Banking will be passed on to the relevant client on an "upon receipt" basis.

Personal Data Protection

In the context of the performance of this document, Clearstream Banking may in certain instances carry out acts of processing of personal data on behalf of the client (or, as the case may be, its Attorney). The Client (or, as the case may be, its Attorney) will qualify as the data controller (within the meaning of Luxembourg act data 2 August 2002 on protection of persons with regard to the processing of personal data, as amended) in respect of the personal data processed in the scope of the French FTT (the “Data”). In the performance of its obligations in relation to the FTT Law, Clearstream Banking may have access to the Data and/or may act as processor (within the meaning of the above-mentioned act) to the Client (or, as the case may be, its Attorney) with respect to the processing of the Data.

In this event, Clearstream Banking undertakes to:

  1. Process the Data exclusively in accordance with (i) the Terms and Conditions, or (ii) the instructions received from the client (or its Attorney when applicable), from time to time, by Authenticated Message or (iii) in order to provide the FTT Services; and
  2. Implement all appropriate technical and organisational measures necessary to ensure the safety and confidentiality of the Data against accidental or unlawful destruction or accidental loss, falsification, unauthorised dissemination or access and against all other unlawful forms of processing.

Liability of the client and indemnification

The client shall be fully liable to Clearstream Banking for any direct or indirect loss, claim, liability, expense, fine or damage as a result of its negligence or wilful misconduct in performing its legal obligations pursuant to the FTT Law and/or of a breach of any contractual obligation set out in this document, including, for the avoidance of doubt, any Taxable Transaction as of 1 August 2012. The client shall indemnify Clearstream Banking in respect of any of the aforementioned loss, claim, liability, expense, fine or damage suffered or incurred by Clearstream Banking arising from non-compliance with its legal obligations pursuant to the FTT Law and/or from a breach of any contractual obligation of the client set out in this document.

 Clearstream Banking shall not be liable for any loss, claim, liability, expense or damage which directly or indirectly results from the following events:

  1. Interruptions in internet service or telephone service (including due to a virus, electrical delivery problem or similar occurrence) that affect internet users generally, or in the local area in which Clearstream Banking, the client or its Attorney operates, as the case may be;
  2. The information provided by the client in the FTT Declaration for the purposes of the FTT Law and this document is incomplete or inaccurate;
  3. The rejection of any FTT Declaration of the client or its Attorney is due to events beyond Clearstream Banking’s reasonable control, in particular when an FTT Declaration is incomplete or inaccurate.

The client (and its Attorney, when applicable,) acknowledge their duty to mitigate losses incurred by Clearstream Banking as a result of its services in relation to the FTT Law.

If the communications medium agreed between the client and Clearstream Banking should fail or otherwise become unavailable, a contingency communications medium, as proposed by Clearstream Banking at the given time, will be immediately used, unless otherwise agreed between the client and Clearstream Banking. In consideration of such change of communications medium and in the event that Clearstream Banking, acting in good faith (and in the absence of gross negligence or wilful misconduct by Clearstream Banking in the verification of any instruction received from such contingency communications medium), receives and acts in accordance with any instruction received via a contingency communications medium purported to be issued by the client or, when applicable, by its Attorney, the client and, when applicable, its Attorney hereby agree to be bound by such FTT Declarations and to indemnify fully and keep fully indemnified Clearstream Banking against any loss of any nature whatsoever, arising directly or indirectly as a result of Clearstream Banking or the client or its Attorney following the abovementioned FTT Declarations.

Effective Date

This document is effective as of 13 November 2012.

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1. “Clearstream Banking” refers collectively to Clearstream Banking S.A. (“CBL”) and Clearstream Banking AG (“CBF”).

2. To establish a power of attorney, the client should contact its Clearstream Banking Relationship Officer to obtain the relevant documentation.

3. This concerns all CBL clients and only CBF clients for their 6-series account.

4. (i) The receipt and transmission of orders on behalf of third parties; (ii) the execution of orders on behalf of third parties; (iii) dealing on own-account; (iv) portfolio management on behalf of third parties; (v) investment advice; (vi) underwriting or guaranteed placement; (vii) non-guaranteed placement; and (viii) the operation of a multilateral trading facility within the meaning of Article L. 424-1 of the FMFC.

5. Markets in Financial Instruments Directive 2004/39/EC.

6. To establish a power of attorney, the client should contact its Clearstream Banking Relationship Officer to obtain the relevant documentation.

Attachments