EXCLUSIVE – Amundi and two former employees before the AMF sanctions committee

Posted on Jul 6, 2021, 8:03 PMUpdated on Jul 6, 2021, 8:05 PM

This Wednesday at 9 am, will be held before the sanctions commission of the Financial Markets Authority (AMF) a trial that promises to be resounding. The French group Amundi, leader in asset management in Europe, is called to appear.

At issue: fraudulent transactions carried out by two former employees between 2014 and 2015. According to our information, these employees, since dismissed for misconduct, have attributed transactions on the Euro Stoxx 50 stock market index to a portfolio of securities, to the detriment of another portfolio, managed on behalf of an institutional investor who is an Amundi client. The listed subsidiary of Crédit Agricole is accused of having failed in its professional monitoring obligations. Amundi does not comment.

Grievances notified in June 2020

The investigation was carried out by the AMF’s services from 2017 to 2019 and grievances were notified to the company in mid-2020, says Amundi in its reference document. These transactions impacted the assets managed on behalf of an institutional client, who has since been indemnified. “Various measures have since been taken so that such dysfunctions cannot recur,” writes the company.

In this case, another legal person is implicated, the broker Tullett Prebon, and a third natural person. This professional would be a former employee of the broker, passed by Crédit Agricole Asset Management (CAAM), the ancestor of Amundi. A specialist in market intermediation, Tullett Prebon has been known under the name TP Icap since its merger with Icap in 2015. The British group does not comment either.

The amount of the sanction requested by the AMF college (equivalent to the prosecutor) will be known on Wednesday, at the end of the indictment. But the latter may be high, in view of Amundi’s financial strength and the seriousness of the alleged facts. The sanctions commission will then issue its decision in several weeks.

At the end of 2012, an Amundi subsidiary, Amundi Investment Solutions, signed a transaction with the AMF for 290,000 euros. The management company, which disputed the facts, did not carry out a precise and independent valuation of the performance swaps of two formula funds that it managed. Its valuation tool was flawed.

In 2010, CAAM AI (now called Amundi Alternative Investments) was ordered to pay 300,000 euros for not having carried out the necessary due diligence within the framework of the verification of the eligibility of funds under foreign law in the assets of its own funds.

Leave a Reply

Your email address will not be published. Required fields are marked *