The AMF Enforcement Committee fines a Danish investment bank for breaches of professional obligations committed by a French branch
Executive Summary
The AMF Enforcement Committee imposed a €300,000 fine on Saxo Bank A/S on 16 July 2025 for multiple breaches of professional obligations committed through its French branch, including failures to properly inform clients about significant changes to derivatives procedures, margin calculations, and securities transaction incidents, as well as deficiencies in equity savings plan (PEA) transfers. This enforcement action demonstrates the AMF's active oversight of cross-border investment banks operating in France and highlights critical gaps in client disclosure practices that compliance teams must address.
What Changed
The enforcement decision does not introduce new regulatory requirements but rather clarifies existing obligations under current French financial regulations. The key compliance expectations reinforced include: - Client notification requirements for significant procedural changes affecting derivatives trading and margin calculations - Incident disclosure obligations for securities transactions that could materially affect order execution - Timely information provision regarding regulatory consequences of the UK's withdrawal from the European Union as they affect PEA accounts - Operational procedures for managing equity savings plan transfers with proper documentation and client communication
What You Need To Do
- *Implement incident reporting protocols for securities transactions that could affect order execution, with documented evidence of timely client notification
- *Review PEA transfer procedures to ensure compliance with regulatory timeframes and proper documentation of information provided to clients regarding Brexit-related consequences
- *Strengthen information governance to ensure all material operational changes are communicated to clients within required timeframes and with appropriate detail
- *Conduct compliance training for front-office and operations staff on professional obligations regarding client communication and information disclosure
Key Dates
Compliance Impact
Urgency: HIGH
Who is Affected
Summary
Sanctions & settlements professional obligations Disclosure Obligations Other professionals Journalists The AMF Enforcement Committee fines a Danish investment bank for breaches of professional obligations committed by a French branch