July 2023 Regulatory Updates

🇫🇷 AMF Enforcement Significant

July 31st 2023

The AMF Enforcement Committee fines an asset management company for breaches of its professional obligations

Sanctions & settlements professional obligations Journalists Investment management companies The AMF Enforcement Committee fines an asset management company for breaches of its professional obligations

AI Analysis

The AMF Enforcement Committee fined asset management company Altaroc Partners (formerly Amboise Partners SA) €600,000 and its senior managers Maurice Tchenio (€500,000) and Patrick de Giovanni (€200,000) on 15 September 2025 for multiple breaches of professional obligations, including lack of operational procedures for fund investments/divestments, inadequate AML/CFT due diligence, unproven benefits of fee retrocessions to distributors, and shortcomings in marketing materials. This decision underscores the AMF's strict enforcement on operational controls, governance, and client protection in asset management, serving as a critical warning for firms to ensure robust, documented procedures and senior manager accountability. It matters because it highlights personal liability for executives and reinforces AMF's educational role through sanction explanations, potentially increasing scrutiny on similar firms.

Key dates

15 September 2025: - AMF Enforcement Committee decision issued, imposing fines on Altaroc Partners and managers
16 September 2025: - French version of press release published
Post: 15 September 2025; - Appeal lodged by Altaroc Partners, Tchenio, and de Giovanni before the Conseil d’État against decision SAN-2025-09 (exact date not specified)

Suggested considerations

Review and document operational procedures for fund investments/divestments, including lender authorization checks.
Enhance AML/CFT systems with systematic due diligence on fund assets/liabilities and risk mapping.
Audit fee retrocession arrangements to demonstrate tangible client service improvements (e.g., via evidence of enhanced distribution quality).
Validate marketing materials for accuracy and completeness.
Conduct senior manager attestations on compliance oversight; implement training on personal liability.

What changed

This is an enforcement action, not a regulatory change; it reaffirms and clarifies existing obligations under French financial regulations for asset managers (sociétés de gestion de portefeuille).
Implementing operational procedures for investment/divestment processes, including verification of lender authorizations.
Conducting systematic AML/CFT due diligence on fund assets and liabilities.
Proving that fee retrocessions to distributors enhance client service quality.
Ensuring marketing materials are accurate and compliant. These align with ongoing AMF expectations for "honest, fair, professional" conduct with requisite skill, care, and diligence.

Compliance impact

Urgency: High - This recent (2025) enforcement demonstrates AMF's willingness to impose multimillion-euro fines (€1.3M total) and hold executives personally accountable for systemic failures in core areas like operations, AML, and client disclosure. It matters for immediate risk as appeals are pending but do not suspend obligations; firms with similar setups face elevated audit risk, especially amid AMF's pattern of targeting asset managers (e.g., 5+ cases in 2024-2025).

References

AI-generated analysis. May contain errors or omissions — verify with the original AMF source before acting. Full disclaimer.

Sectors:

Investment Management

Topics:

AML / Financial Crime Consumer Protection / Conduct Senior Managers / Governance

Asset Manager