The asset management branch of BNP Paribas undertook on Monday to pay an amount estimated at a maximum of 7.75 million euros, at the end of an administrative composition agreement concluded with the Autorité des marchés financiers (AMF) and published Monday.
BNPP AM must also pay 600,000 euros to the public treasury, according to this agreement concluded on June 2. The AMF accuses him in particular of misinforming clients about five funds between May 2016 and December 2021 as well as a lack of diligence, care, skill and professionalism in their structuring.
BNPP AM undertakes to pay each investor concerned within 16 months the sum due for costs incurred above the rate of 0.75%, provided that the amount is at least 50 euros. The AMF expects the best efforts to identify eligible investors.
If the company does not pay 7.75 million euros to investors in these funds, it will have to pay the difference to the Treasury, the agreement stipulates.
These five funds, created in 2002 or 2006, had between 149 million euros and 390 million euros in assets at the time of the years audited. They invested in telecommunications, community services or even the European energy, financial and technological sectors.
For the AMF, these funds could not achieve, whatever the market conditions, the management objectives displayed in the communications for these funds, in particular in the prospectuses.
In addition, no first or second level control has been carried out to verify compliance with the management objective of the five funds, mentioned by the AMF as another grievance. The authority is therefore asking to upgrade its compliance and internal control system.
BNPP AM assured in its response to the AMF, communicated in the agreement, that it is not aware of any direct or indirect complaint in connection with these five funds.