AMF’s Enforcement Committee has imposed a one million euro fine on Crédit Industriel et Commercial for breaching regulations and obligations. According to the committee; The company failed to establish an operational system for assessing investment suitability, comply with client classification procedures, market financial instruments suited to clients’ profiles, and provide clients with accurate information on costs and fees.
The firm was given a warning as well as the fine for:
- Failing to establish an efficient operational system for determining the appropriateness of investments suggested to customers.
- Failure to uphold its obligations to classify clients in accordance with the laws currently in effect and to adhere to their requirements.
- Failure to uphold its obligations to sell financial products that were appropriate for the profiles of their customers and to maintain an efficient and functional control system for their investment advice business
- Not fulfilling its duty to notify its clients of the expenses and fees associated with the financial instruments it advised in a manner that was clear, accurate, and non-misleading.
The duration, frequency, and severity of the violations, the financial status of these businesses, and the corrective actions taken were all factors that the Committee took into account when determining the fines levied against Crédit Industriel et Commercial.