May 2023 Regulatory Updates

Key dates

August 2019

December 2023; - Period of breaches investigated

31 December 2025

- AMF Enforcement Committee decision date; fines imposed on M Capital Partners (€200,000), Rudy Secco (€70,000), and Stéphanie Minissier (€35,000)

Suggested considerations

• Review and enhance tied agent activities to ensure no unauthorized investment services like non-firm commitment placements; map against permitted services list.
• Audit investment allocation systems for precision, operationality, and traceability; implement verifiable verifications.
• Strengthen AML/CFT frameworks: ensure due diligence is adequate, systems are operational, and staff training is regular.
• Update conflicts of interest policies with clear identification, prevention, and management procedures.
• Conduct senior manager attestations on personal oversight; perform gap analysis against this and similar cases (e.g., Eres Gestion, Inter Gestion).

What changed

• This is an enforcement decision, not a new regulation, but it reinforces and clarifies existing requirements under French Monetary and Financial Code (e.g., Article L.
• Asset management companies (AMCs) acting as tied agents cannot provide placement of financial instruments without a firm commitment basis, as this exceeds the restrictive list of permitted investment...
• Investment allocation processes must be precise, operational, and traceable, with demonstrated compliance to investment procedures.
• Firms must maintain effective systems for conflicts of interest identification/prevention, AML/CFT (including adequate due diligence), and overall operational controls. These align with patterns in...

Key dates

August 2019

December 2023; - Period of breaches investigated

31 December 2025

- AMF Enforcement Committee decision date; fines imposed on M Capital Partners, Rudy Secco, and Stéphanie Minissier

Suggested considerations

• Audit dual roles: Review tied agent activities to ensure no unauthorized placement services; cease any circumvention of AMC service restrictions.
• Enhance investment processes: Implement precise, operational rules for fund investment allocation, with full traceability of due diligence and verifications.
• Strengthen controls: Update conflicts of interest frameworks, AML/CFT systems (including due diligence, training, and risk assessments), and compliance monitoring to ensure operational effectiveness.
• Director oversight: Responsible managers must demonstrate active supervision; conduct gap analyses attributing breaches to governance failures.
• Documentation: Maintain auditable records for all procedures; test systems for operationality via internal audits.

What changed

• This is an enforcement action, not a regulatory change introducing new rules. It reinforces existing obligations under French financial regulations (e.g., Monetary and Financial Code) for asset...
• Strict limits on services: AMCs cannot provide placement of financial instruments without a firm commitment basis, even as tied agents; doing so circumvents authorized investment services.
• Operational investment systems: Processes for allocating investments between funds must be precise, with full traceability of verifications.
• Conflicts of interest: Firms must identify, prevent, and manage conflicts effectively.
• AML/CFT: Systems must be fully operational, with adequate due diligence (e.g., client identification, PEP screening).

Key dates

August 2019

December 2023; - Period of breaches investigated, covering unauthorized services, investment process failures, conflicts, and AML/CFT deficiencies

31 December 2025

- AMF Enforcement Committee decision date; fines imposed on M Capital Partners, Rudy Secco, and Stéphanie Minissier

Suggested considerations

• Audit investment services scope to ensure no unauthorized placement activities, especially if acting as tied agents; cease and remediate any circumventions.
• Enhance investment allocation processes with precise rules, full traceability of verifications, and demonstrable operationality.
• Strengthen conflict-of-interest frameworks with identification, prevention, and management protocols, including documentation.
• Overhaul AML/CFT systems for effective due diligence on clients, assets, and risks; conduct staff training and test operationality.
• Review manager accountability: responsible managers should self-assess oversight of compliance functions.

What changed

• This is an enforcement decision, not a new regulation, but it reinforces existing AMF requirements under French Monetary and Financial Code (e.g., Article L. 214-24-1) for asset managers:
• Asset management companies (sociétés de gestion) are restricted to specific investment services; providing placement of financial instruments without firm commitment (as a tied agent) circumvents...
• Investment systems must be operational with precise allocation rules between funds; lack of traceability in verifications violates due diligence obligations.
• Firms must maintain effective conflict-of-interest identification, prevention, and management processes.
• AML/CFT systems require operational due diligence, including adequate client and asset verification; deficiencies here trigger sanctions. These align with prior AMF positions but clarify enforcement...