November 2024 Regulatory Updates

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Investment Management Capital Markets & Trading Wealth & Private Banking

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Consumer Protection / Conduct Market Abuse / Surveillance Reporting & Disclosure

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🇫🇷 AMF Enforcement high

November 8th 2024

The AMF Enforcement Committee fines a financial investment advisor, two asset management companies and their directors, and a credit institution a total of €5,670,000

Sanctions & settlements professional obligations Journalists Investment management companies The AMF Enforcement Committee fines a financial investment advisor, two asset management companies and their directors, and a credit institution a total of €5,670,000

AI Analysis

The AMF Enforcement Committee imposed total fines of €5,670,000 on a financial investment advisor (FIA), two asset management companies (AMCs), their directors, and a credit institution for breaches of professional obligations. This enforcement action underscores the AMF's rigorous scrutiny of operational controls, due diligence, and governance in investment services, serving as a critical reminder for firms to maintain robust procedures to avoid similar sanctions. It matters because it highlights personal liability for directors and escalating fines for systemic failures, potentially influencing peer reviews and audit priorities. #

What Changed

This is an enforcement decision, not a regulatory change introducing new rules. It reinforces existing AMF requirements under professional obligations, including: Implementation of operational procedures for investment/divestment processes, such as verifying lender authorizations. Systematic anti-money laundering (AML) and counter-terrorism financing (CTF) due diligence on fund assets and liabilities. Justification of retrocessions (rebates) to distributors, proving enhanced client service quali

What You Need To Do

Conduct gap analysis of operational procedures for investments/divestments, ensuring lender authorization checks (reference AMF Position-Recommendation DOC-2020-05 on portfolio management)
Review AML/CTF due diligence frameworks for fund assets/liabilities, aligning with AMF Regulation 2016-01
Audit retrocession practices to distributors, documenting service quality enhancements (per AMF doctrine on inducements)
Update marketing materials and advisory processes for compliance with honesty/fairness standards
Enhance senior manager attestations and training on personal liability under CMF L

Key Dates

2026 ) - AMF Enforcement Committee decision fining €5,670,000 total.

15 September 2025 Altaroc Partners decision (appeal lodged to Conseil d’État).

9 July 2025 MND insider dealing decision (appeal to Paris Court of Appeal).

10 December 2025 Novaxia Investissement decision.

5 November 2025 Carat GP FIA decision.

Compliance Impact

Urgency: High – This signals intensified AMF enforcement on professional obligations in 2025 (multiple similar fines: €1.3M, €1.89M, €0.5M, €2.5M implied, €0.305M, €3.5M), with personal bans and multimillion fines. Matters due to director accountability trends, potential for follow-on audits, and ed