AMF Enforcement Committee fines a financial investment advisor and its director for breaches of their professional obligations

The Committee first found that Activ Finance Conseils, which has financial investment advisor status, had failed to comply with its obligations regarding product governance by not having adequate systems in place.

The Committee then held that the company had failed in its obligation to draw up documentation in compliance with the regulations. Firstly, clients had not been informed of the existence of significant commercial relationships with promoters of financial products. Secondly, the company had provided its clients with unbalanced information about the risks and benefits of the products proposed, and had incorrectly presented information about the costs and fees associated with their investments.

The Committee then examined the conditions under which the financial investment advisor had marketed the financial securities of several companies registered in Liechtenstein.

Firstly, as regards the marketing of the bonds issued by Multitalent AG, Multitalent II AG and Multitalent III AG, having noted that the procedure for authorising the marketing of units or shares in alternative investment funds under the AIFM Directive did not apply to the bonds, the Enforcement Committee dismissed the alleged breach that the financial investment advisor had failed to comply with its obligation to carry out its activity with skill, care and diligence. Effectively, it did not find that these financial securities had not been authorised for marketing to retail clients in France.

With regard to the marketing of the financial securities of Vivat Multitalent AG, the Committee noted that this company's financial securities did not have a prospectus and were therefore not eligible to take advantage of the ‘prospectus passport’. Consequently, their marketing was prohibited. It therefore held that the financial investment advisor had not carried out its activity with the skill, care and diligence required in the best interests of its clients.

Finally, the Committee held that Activ Finance Conseils had failed to comply with its obligations regarding anti-money laundering and countering terrorist financing.

The Committee deemed that breaches committed by Activ Finance Conseils were attributable to Ms Géhin, the company's director at the time of the events.

An appeal may be lodged against this decision.

About the Enforcement Committee
The Enforcement Committee, which is made up of judges and professionals, has total freedom to make decisions. It can impose sanctions on any person or company whose practices contravene laws and regulations that fall within the jurisdiction of the AMF. It ratifies settlement agreements signed by the Secretary General and respondents. And it takes part in the AMF’s educational efforts by clarifying financial regulations when explaining its decisions.