The French law on the Financial security (Loi de Sécurité Financière) has been adopted by the French parliament on 17th July 2003 to enforce the enterprise governance principles. This law is applied to companies who call on the public savings.
Like the Sarbanes-Oxley Act, the law relies mainly on 3 topics :
- Increased accountability by the top management
- Enhancement of the internal control
- A reduction of conlicts of interest
The objective is to allow the creation of financial information of better quality and to provide more tranparency.