The AMF Enforcement Committee fines an asset management company for breaches of its professional obligations
In its decision of 26 July 2023, the Enforcement Committee imposed a fine of €200,000 on the asset management company Eres Gestion. Eres Gestion is an asset management company specialising in employee savings, retirement savings and employee shareholding schemes.
Firstly, the Committee found that the asset management company had failed in its obligation to establish, implement and maintain operational policies and procedures relating to management fee rebates in connection with the marketing of its funds. With regard to this obligation, the company's procedure was incomplete and imprecise, except for the controls carried out by its operational departments.
The Committee also found that the company had failed to inform investors in a manner that was comprehensive, accurate and understandable, before they invested in alternative investment funds, about the management fee rebates paid to distributors.
It also considered that the asset management company had a procedural framework for selecting investments that was incomplete and not very operational, and that it had therefore not exercised a high level of due diligence, nor had it put in place policies and procedures to ensure that the investment decisions of each alternative investment fund complied with its investment objectives and strategies.
Lastly, the Committee noted that the company had neither documented nor tracked its decisions regarding the selection of asset management companies and underlying funds.
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.
