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

First, the Committee found that, in the marketing of convertible bonds, SPI had failed to comply with its obligations to draw up documentation in accordance with the rules, to provide clear, accurate and non-misleading information to its clients and not to receive funds other than those intended to remunerate its activity.

The Committee then found that SPI had failed to comply with its obligations to identify and manage conflicts of interest and that, by failing to inform its clients of financial flows to it or to companies owned and/or managed by Mr Rhodes, it had failed to act honestly, fairly and professionally in the best interests of its clients.

Finally, the Committee held that SPI had failed to comply with its obligations regarding anti-money laundering and combating the financing of terrorism. 

The Committee found that the breaches committed by the company were attributable to Mr Rhodes.

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.