The Autorité des Marchés Financiers (AMF) Enforcement Committee imposed a fine of EUR 200,000 on a portfolio asset management company for breaches of its professional obligations .
According to the press release, 123 Investment Managers was the recipient of the fine by the French watchdog in a decision taken on July 6 and made effective today. In the first instance, the Enforcement Committee found that 123 Investment Managers' marketing and disclosure procedures were not operational since they contained inaccurate regulatory references and did not specify the controls carried out by the compliance officer.
123 Investment Managers was also found to have failed to provide accurate, clear and non-misleading information about the characteristics of the funds under management and the fees charged in emails, videos, reports and a letter to investors.
As a result, the Committee determined that 123 Investment Managers had not breached its obligations to act honestly, loyally and professionally by misleading clients throughout the period under review. This information had indeed been provided to clients by 123 Investment Managers during the fund's creation phase.
Moreover, this alleged breach was dismissed after 123 Investment Managers was found not to have violated the fund's rules with regard to managing part of the fees for the advisor. According to the Committee, 123 Investment Managers did not have a procedure for tracking advice received from third parties and the management decisions made as a result of this advice.
The Committee found that 123 Investment Managers failed to control external advisors' advice on fund management.
Reprimand on Financial Investment Advisor by the AMF
The AMF Committee issued a reprimand and imposed a fine of EUR 150,000 in May on the financial investment advisor, Auvergne Investissement Hôtels. Furthermore, a five-year ban was put on Serge Emery, the Chairman along with a fine of €50,000.
Auvergne Investissement Hôtels had its clients subscribe to shares in two German alternative investment funds (AIFs) that were not authorized to be sold in France between February 2017 and October 2019.
