The AMF Enforcement Committee fines a financial investment advisor for breaches of its professional obligations
Executive Summary
The AMF Enforcement Committee fined financial investment advisor Capexis €120,000 on 15 February 2023 for breaches including receiving prohibited payments from client loan repayments and failing to disclose commissions from SCPI usufruct subscriptions, with the Conseil d'Etat later increasing the fine to €150,000 on 3 March 2025. This enforcement action underscores AMF's strict oversight of **financial investment advisors (Conseillers en Investissements Financiers - CIFs)** on professional obligations like payment restrictions and transparency. It matters for compliance as it highlights personal liability risks and the educational role of such decisions in clarifying regulations. #
What Changed
This is an enforcement decision, not a new regulation, but it reinforces existing requirements under French financial regulations for CIFs: - Prohibition on non-remunerative payments: CIFs cannot receive payments beyond fees for advisory services, such as loan repayments from clients. - Commission disclosure: CIFs must inform clients of the nature, amount, or calculation method of any commissions received in connection with investment advice, e.g., from SCPI usufruct arrangements. - No aggravating factor for incomplete information on unauthorized marketing absent specific provisions, but core duty to ensure authorized products and act in clients' best interests remains paramount (cross-referenced in similar cases). #
What You Need To Do
- Review payment structures
- Enhance disclosure policies
- Conduct gap analysis
- Training and monitoring
- Prepare for inspections
Key Dates
Compliance Impact
Urgency: High - This matters due to escalating fines (e.g., €120k to €150k on appeal), permanent/temporary bans in parallel cases, and director liability up to €2m. Recent 2024-2025 enforcements signal AMF's intensified focus on CIF misconduct amid fund scandals, risking reputational damage and operational bans for non-compliant firms. Immediate policy reviews are essential to avoid similar outcom
Who is Affected
Summary
Sanctions & settlements professional obligations Investment advice Other professionals Journalists The AMF Enforcement Committee fines a financial investment advisor for breaches of its professional obligations