The AMF Enforcement Committee fines an issuer €20,000 and its shareholders a total of €1.7 million
In its decision dated 10 June 2025, the Enforcement Committee fined the shareholders of SMCP for breaching their reporting obligations, and disseminating false or misleading information. The issuer SMCP was fined in the same proceedings for a different breach, consisting of failing in its obligation to maintain the confidentiality of inside information.
Between 2016 and 2021, European TopSoho, headed by Ms Chenran Qiu, was the majority shareholder of the SMCP Group, a company specialising in the sale of ready-to-wear clothing (Sandro, Maje, Claudie Pierlot and Fursac). In 2021, European TopSoho sold several million SMCP shares to Dynamic Treasure Group as part of a complex arrangement involving several companies and a trust.
The Enforcement Committee first found that European TopSoho and Dynamic Treasure Group failed to comply with their reporting obligations by not reporting, or reporting too late, to the AMF and SMCP that they had fallen below or exceeded, respectively, the thresholds for holding SMCP’s capital and voting rights, as well as their plans for the following six months.
The Committee further held that European TopSoho committed market manipulation by disseminating false or misleading information, namely publishing, subsequent to the share cession, a press release in which it stated that its head, Ms Qiu, was neither a Dynamic Treasure Group shareholder nor did she in any way control its business, whereas, in fact, an examination of the arrangement’s terms revealed that Ms Qiu did control Dynamic Treasure Group and was its owner.
The Committee found that some of European TopSoho's reporting obligation breaches, as well as the market manipulation breach, were attributable to its head, Ms Qiu.
Consequently, the Committee fined European TopSoho €400,000, Dynamic Treasure Group €300,000 and Ms Qiu €1 million.
In addition, the Committee held that SMCP failed in its obligation to maintain the confidentiality of its inside information. The company’s press release regarding its 2021 annual results had been made available to several visitors on its website a few hours before the official publication. Upon being alerted to this unintentional dissemination, SMCP ordered the official release just a few minutes later. It was fined €20,000.
An appeal may be lodged against this decision.
Appeal lodged by European TopSoho before the Paris Court of Appeal against decision SAN-2025-05
European TopSoho represented by its judicial representative, has lodged an appeal before the Paris Court of Appeal against the Enforcement Committee's decision of 10 June 2025.
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.
