Record penalty amount of € 35 million against Natixis by the AMF

[Article published at 13: 05 and updated at 13h50]

The financial markets Authority (AMF) has put his threat in execution, and pronounced the penalty history that it was considering against Natixis Asset Management, a subsidiary of asset management, Natixis (groupe Banques Populaires-Caisses d’epargne, BPCE), for breaches relating to the management of certain funds to capital guaranteed, the outcome of the audits carried out in 2015 on 133 fund of Natixis AM.

“By decision of 25 July 2017, the Commission of the sanctions imposed at Natixis Asset Management, a warning and a penalty of 35 million euros, the largest ever imposed by it, had failed to fulfil its professional obligations in the fund management to form between 2012 and 2015,” says the AMF, in a press release published this Wednesday.

As A comparison, the set of sanctions imposed by the AMF, has reached a cumulative amount of € 9.7 million in 2016 (against 17 corporations and 15 individuals) and $ 21.2 million in 2015.

“Inaccurate and misleading”

Breaches are sanctioned are serious : “the information is inaccurate and / or misleading given by the prospectus of the funds (and the commissions for early redemption have not been paid as agreed); “the violation of the obligation to act in the sole interest of the unitholders” who have suffered, in reality,”charges improper and unjustified” valued at $ 15.6 million; “the exceeding of the maximum rate of management fees provided for by the prospectus”, up to an amount of € 3.6 million; “the issuance of an information that is not deemed accurate, clear and not misleading” in the annual reports of the fund on the recognition of commissions or early redemption.

“To determine the penalty, the Commission took into account the gravity and duration of the breaches and the importance of the amounts at stake,” says the AMF.

Natixis AM has decided to appeal the decision before the Council of State.

“We regret this decision which we consider to be unjustified and disproportionate, and we are disputing,” said the agency Reuters Matthew Duncan, the chief executive officer of Natixis Asset management.

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