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The AMF Enforcement Committee fines Sogenial Immobilier and its chairman a total of €180,000

AI Analysis

Executive Summary

The AMF Enforcement Committee issued a €180,000 combined fine against Sogenial Immobilier (€150,000) and its chairman Jean-Marie Souclier (€30,000) on September 12, 2024, for systematic breaches of professional obligations spanning investment selection, regulatory disclosure, conflict of interest management, and anti-money laundering compliance. This enforcement action demonstrates the AMF's heightened scrutiny of asset managers' operational controls and substantive compliance with fund governance requirements, particularly regarding real estate investment companies (SCPIs).

What Changed

The decision does not introduce new regulatory requirements but rather clarifies enforcement expectations across existing obligations: - Regulatory Documentation Standards: Asset managers must implement documented procedures governing the preparation of all regulatory and marketing materials for alternative investment funds, with particular attention to accurate risk disclosure and asset return reporting. - Investment Due Diligence Standards: A "high standard of diligence" is required when selecting investments, with formal investment procedures that must be consistently followed and documented. - Conflict of Interest Management: Specific controls must address conflicts in asset allocation decisions, with documented decision-making processes that demonstrate conflict mitigation. - AML/

What You Need To Do

  • *Audit Existing Procedures
  • *Formalize Investment Selection Process
  • *Enhance Conflict of Interest Controls
  • *Implement Comprehensive AML/CFT
  • *Strengthen Internal Control Functions
  • *Senior Management Accountability

Key Dates

September 12, 2024 - AMF Enforcement Committee issued the decision
September 16, 2024 - Public announcement of sanctions
No specified deadline - Appeal period remains open (appeals may be lodged against the decision)

Compliance Impact

Urgency: HIGH

Who is Affected

*Primary: Asset management companies managing alternative investment funds (particularly those managing SCPIs) and their senior management/executive officers.*Secondary:Compliance and risk management functions within asset managersFund governance committeesClients who subscribed to affected SCPIs (approximately 20 clients were identified in the Sogenial case)Internal audit and control functions

Summary

Sanctions & settlements professional obligations Journalists Investment management companies The AMF Enforcement Committee fines Sogenial Immobilier and its chairman a total of €180,000

Relevant Firm Types

Asset Manager
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