Withdrawal conditions, ceilings, fees... The PACTE law, brought in by the Minister of the Economy and Finance, Bruno Le Maire, has made the operation of share savings plans (PEA) and PEA-PMEs more flexible. Read all about it.
PEA and PEA-PME reminders
The PEA is a regulated savings product that allows you to invest in the stock market while benefiting from tax exemption. There are two types of PEA: the classic PEA, with an investment ceiling of €150,000, and the PEA-PME, designed to finance small and medium-sized enterprises (SMEs) and mid-cap companies (ETIs). The PEA-PME operates in the same way as a classic bank PEA, except for the payment ceiling of 225,000 euros and the securities that can be invested in it.
An individual can hold both a PEA and a PEA-PME, provided that the sums invested do not exceed €225,000.
Towards a cap on PEA and PEA-PME fees
The PACTE Act made these products more attractive by making their operating rules more flexible. A decree published on February 5, 2020 completed this reform by introducing a cap on fees on PEAs and PEA-PMEs.
As a result, from July 1, 2020, opening fees will be capped at 10 euros, and account management fees may not exceed 0.4% of the value of securities held. Transaction fees, i.e. for purchases and sales within the PEA, will be limited to 0.5% of the transaction amount if carried out online, and to 1.20% if carried out by telephone or post. Finally, fees for transferring a PEA to another institution will be capped at 15 euros, instead of the current 100 euros.
According to a press release issued by the government, a person who has invested 1,000 euros in the shares of a listed company will pay a maximum of 9 euros in annual fees, compared with the usual average of 20 euros.
Other changes introduced by the PACTE Act
In addition to capping fees on PEAs and PEA-PMEs, the PACTE Act has relaxed the rules on withdrawals from these savings products. Previously, any withdrawal before 8 years led to automatic closure of the PEA, while a withdrawal after 8 years prevented further payments. From now on, partial withdrawals before 5 years will not result in closure of the plan if they are made for reasons of redundancy, disability or early retirement.
The PACTE Act has also enabled the creation of a PEA Jeunes accessible to people aged between 18 and 25 who are attached to their parents' tax household. This investment benefits from the same tax advantages as the classic PEA.