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The AMF Enforcement Committee fines a financial investment advisor and its manager for breaches of their professional obligations

AI Analysis

Executive Summary

The AMF Enforcement Committee sanctioned financial investment advisor DCT (formerly Didier Maurin Finance) and its manager Didier Maurin with a five-year ban from practicing and fines of €150,000 and €200,000 respectively for recommending unauthorized Samoan AIF shares to 64 clients and failing to identify/manage conflicts of interest, including lacking a conflicts register. This decision, upheld by the Conseil d'Etat on 9 September 2024, underscores AMF's strict enforcement of client-best-interest and conflicts obligations under French regulations. It matters as it provides binding guidance on due diligence for product marketing authorization and conflicts procedures, signaling heightened scrutiny on financial investment advisors (FIAs). #

What Changed

This is an enforcement action, not a regulatory change, but it clarifies and reinforces existing obligations for FIAs under AMF rules: - FIAs must verify marketing authorization of recommended products in France before advising clients; recommending unauthorized AIFs breaches competence, care, diligence, and client-best-interest duties. - FIAs require effective, operational procedures for identifying and managing conflicts of interest, including maintaining a conflicts register; failure to do so is a standalone breach. No new rules were introduced, but the decision rejects incomplete information on unauthorized products as an aggravating factor absent specific provisions, narrowing sanction escalation grounds. #

What You Need To Do

  • Immediate review
  • Conflicts enhancement
  • Policy updates
  • Documentation
  • assess against AMF Position-Recommendation DOC-2021-05 on FIA obligations (https://www

Key Dates

11 April 2022 - AMF Enforcement Committee issues decision SAN-2022-04, imposing bans and fines.
9 September 2024 - Conseil d'Etat judgment (no. 464877) dismisses appeal, upholds sanctions, and orders €1,500 costs each to AMF.

Compliance Impact

Urgency: Medium - Not critical as no new rules or deadlines, but medium due to upheld precedent reinforcing FIA duties amid AMF's pattern of FIA sanctions (e.g., bans/fines in 2022-2025 cases). Matters for FIAs lacking controls, as breaches lead to personal liability, business bans, and fines scaling with client harm; signals AMF educational enforcement focus, increasing inspection risks.

Who is Affected

PrimarySecondaryEU AIFs or complex products in France; firms without robust conflicts frameworks.Broadersupervised entities emphasizing professional obligations, as the Enforcement Committee uses such cases for regulatory clarification.

Summary

Sanctions & settlements Investment advice Other professionals Journalists Investment services providers The AMF Enforcement Committee fines a financial investment advisor and its manager for breaches of their professional obligations

Relevant Firm Types

Wealth ManagerAll Firms
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