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

Key dates

21 December 2022

- Enforcement Committee decision date against Inocap Gestion

No specific implementation deadline stated Deadline

- The decision addresses historical breaches; however, firms should immediately remediate similar deficiencies

Suggested considerations

• assessments across these areas:
• *Liquidity Risk Management: Review procedures for adequacy and operational effectiveness; ensure they address fund-specific liquidity profiles and stress scenarios
• *Market Abuse Detection: Audit surveillance systems to confirm they specify participation conditions in market surveys and document consequences for violations
• *AML/CFT Compliance: Enhance risk mapping to capture money laundering typologies; strengthen client onboarding procedures to verify beneficial owners and screen for PEPs
• *Compliance Monitoring: Establish centralized processes for the compliance officer to aggregate and review market abuse information across all business lines
• *Documentation: Ensure all procedures are documented, communicated, and evidenced through staff training and audit trails

What changed

• The decision does not introduce new regulatory requirements but rather clarifies enforcement expectations for existing obligations:
• Liquidity Risk Management: Asset managers must establish procedures that are both adequate in design and operational in practice, not merely documented
• Market Abuse Detection Systems: Surveillance systems must specify conditions for participation in market surveys and establish clear consequences for non-compliance
• AML/CFT Procedures: Risk mapping and client onboarding procedures must be sufficiently detailed to identify and assess money laundering risks, including beneficial owner identification and politically exposed person (PEP) detection
• Compliance Function: The compliance and internal control officer must actively centralize and monitor information on market abuse across the organization

Who is affected

• Portfolio asset management companies
• Compliance and risk management functions
• Internal control officers
• Client onboarding teams
• Any asset manager with inadequate liquidity risk frameworks or market surveillance systems

Related regulations

• *Systemic Issues in Asset Management Compliance
• *Key Pattern
• *Industry Commentary
• based compliance assessment rather than box-ticking compliance.
• *Regulatory Evolution