The AMF Enforcement Committee sanctions a media company and its director for making investment recommendations without mentioning conflicts of interest and for price manipulation
Executive Summary
The AMF Enforcement Committee sanctioned a media company and its director for issuing investment recommendations without disclosing conflicts of interest and engaging in price manipulation, highlighting the regulator's strict enforcement against market abuse and transparency failures. This case underscores the AMF's focus on protecting investors from misleading practices by non-traditional actors like media outlets, with penalties serving as a deterrent amid rising digital fraud. Compliance teams must prioritize conflict disclosures and surveillance to avoid similar actions, as it reinforces ongoing AMF priorities in conduct and market integrity. #
What Changed
This enforcement decision does not introduce new regulations but reaffirms and clarifies existing requirements under AMF rules and EU Market Abuse Regulation (MAR): - Mandatory conflict of interest disclosure: Investment recommendations must explicitly mention any conflicts, such as financial stakes or relationships influencing the advice, to ensure clear, non-misleading information. - Prohibition on price manipulation: Practices artificially influencing security prices, including through coordinated recommendations, are strictly banned, with liability extending to directors. These align with AMF General Regulation and professional obligations for advisors, emphasizing due care, client best interests, and suitability. #
What You Need To Do
- Conduct conflict of interest audits
- Enhance surveillance for market abuse
- Update compliance policies
- Training programs
- Inducement reviews
- assess against AMF Position-Recommendation 2013-10 and prepare for potential AMF requests for marketing materials
Compliance Impact
Urgency: High - This matters due to the AMF's escalating enforcement (e.g., record 12 sanction decisions in 2024 affecting 60 entities, €26.5M fines), targeting non-authorized actors like media amid digital fraud surges (181 sites shut down in 2024). Media and advisory firms face director-level liability and bans, amplifying personal risk; immediate policy gaps could trigger investigations, especi
Who is Affected
Summary
Sanctions & settlements Executive & other private individuals Journalists Listed companies and issuers The AMF Enforcement Committee sanctions a media company and its director for making investment recommendations without mentioning conflicts of interest and for price manipulation