French financial regulator AMF’s Enforcement Committee imposed a €300,000 fine on Foncière Magellan for regular credit transactions and non-compliance with authorization requirements. The committee found Foncière Magellan failed to identify and manage conflicts of interest in contracts with its clients and group companies.
They concluded that the firm…
- Had routinely executed credit transactions on behalf of the real estate funds it managed.
- Had not complied with its programme of operations
- Regularly exceeded conditions of its licence: 50 transactions totalling €69.8 million
- Failed to recognise and resolve two instances of conflict of interest involving the signing of contracts between the funds it oversaw and businesses it was affiliated with financially or that were a part of its group.
- Was in breach of its duty to maintain an effective procedure for recognising, avoiding, and managing conflicts of interest.
The Committee highlighted the failure to recognise and resolve two instances of conflict of interest involving the signing of contracts between the funds it oversaw and businesses it was affiliated with financially or that were a part of its group, and was in breach of its duty to maintain an effective procedure for recognising, avoiding, and managing conflicts of interest.
This judgement may be challenged in court.