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

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).

Suggested Considerations

• Review payment structures: Audit all client interactions for prohibited receipts (e.g., loan repayments, indirect commissions); ensure only advisory fees are collected.
• Enhance disclosure policies: Implement mandatory client notifications on commissions, including SCPI or similar structures, with documented evidence.
• Conduct gap analysis: Assess compliance with best interests duty, conflict identification, and product authorization; maintain registers and procedures.
• Training and monitoring: Train staff on CIF obligations; monitor for similar breaches in fund marketing or client lending.
• Prepare for inspections: Ensure diligence in cooperating with AMF inspectors, as non-cooperation can lead to sanctions.

Key Dates

Who is Affected