The AMF Enforcement Committee fines an investment services provider and its director a total of €850,000

In 2019, against the backdrop of Brexit, the Paris-based entity of the UK Makor Group applied for authorisation to provide the service of the reception and transmission of orders in order to continue its activities in the European Union. After having undertaken to comply with certain conditions, Makor Securities Paris obtained approval for its programme of activities from the AMF, and it was authorised by the Autorité de Contrôle Prudentiel et de Résolution (French Prudential Supervisory and Resolution Authority, ACPR) in November 2020.

Following an inspection covering the period from 1 September 2021 to 7 March 2024, the AMF Board made a referral to the Enforcement Committee, which found that the ISP had failed to comply with the conditions of its authorisation regarding the implementation of an automated system for detecting market abuse, the full-time employment of a compliance officer for investment services, and the execution of trades by a broker located in the European Union.

In addition, after having noted that Makor Securities Paris had outsourced compliance tasks to third-party service providers, the Committee considered that its set of procedures covering these outsourced services was neither effective nor operational. It also noted that no controls of external service providers had been carried out in 2021, and that the controls carried out in 2022 and 2023 were incomplete.

The Committee further held that the system for detecting market abuse was inadequate, as it did not enable the company to effectively detect market abuse by its clients or report suspicious transactions to the AMF.

Finally, the Committee considered that the system for supervising employees' personal transactions was inadequate.

The Committee attributed all of the company's breaches to its director, Mr Hassan.

When deciding the amount of the fines, the Committee noted in particular that market abuse undermines the integrity of the markets and investor confidence, and that the shortcomings and failings of the systems for detecting market abuse and for supervising personal transactions were particularly serious.

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.