The AMF Enforcement Committee has fined an asset management company and two of its directors for breaches of their professional obligations and cleared two other directors

The AMF Board had accused the asset management company of several breaches relating to non-compliance with its authorisation application, to its internal organisation, to the management of conflicts of interest, to the information provided to investors and to the valuation process.

The Board argued that Uzès Gestion had been run by a de facto officer who was not mentioned in the authorisation application as an executive officer and accused it of thus having failed in its obligation to comply at all times with the conditions of its authorisation. The Enforcement Committee noted that the Chair of the Uzès Gestion Supervisory Board, who was not indicated as an executive officer in the authorisation application had, in four instances, exceeded the limits of his powers as provided for in the authorisation application. It considered that these four acts, which occurred over a period of more than four years, were isolated, of limited scope and could be explained by how the Financière d'Uzès Group was organised and the various functions held by the person in question. Consequently, it decided that these facts were not sufficient to demonstrate that Uzès Gestion had failed to comply with the conditions of its authorisation.

The Committee also held that Uzès Gestion had not identified several conflicts of interest resulting in particular from its links with its parent company and the functions performed by its directors and financial managers in its procedures.

As regards its internal organisation, the Committee considered that Uzès Gestion had not ensured continuity of human resources and had granted certain financial managers remuneration that did not comply with the regulations, its programme of activity or its internal procedures.

Among the observations that were upheld in relation to marketing and the information provided to investors, the Committee considered that Uzès Gestion had failed in its obligation to inform investors about the management fee retrocessions paid to distributors for marketing the funds and to justify the enhancement of the service provided. It also considered that Uzès Gestion had provided erroneous information to the AMF in its anti-money laundering and combatting the financing of terrorism reports. Furthermore, the Committee noted that Uzès Gestion had provided investors and prospects with information that was not clear, accurate and not misleading in various marketing materials.

Finally, with regard to the valuation system, the Committee considered that for one of the funds managed, Uzès Gestion, did not have a sufficiently precise and comprehensive valuation procedure, that it did not ensure the traceability of the asset valuation process and that its permanent control was not operational.

The Committee found that the breaches committed by Uzès Gestion were attributable to Jean-Marie Godet and Christian Maugey, both designated as executive officers of the company in the authorisation application. It cleared the Chair of the Supervisory Board, who had never been registered as an executive officer, as it was not established that he had acted as a de facto officer. Similarly, the Committee cleared the fourth respondent director, who had held the title of Deputy Managing Director and member of the Supervisory Board, as no evidence in the file demonstrated that he had exercised the functions of an executive officer.

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.