The Financial Markets Authority (AMF) has implemented measures, in particular the prohibition of transaction commissions for asset managers, in order to better control management fees following a series of checks, announced Monday the stock market policeman.
After questioning 49 management companies and conducting in-depth checks or interviews with around ten of them, the Autorité des marchés financiers decided to change the rules in force concerning the costs and fees of management bodies. collective investment in transferable securities (OPCVM) with individuals, according to a press release.
From 2026, movement commissions, ie additional fees charged to the client when a manager buys or sells securities in the portfolio, will be prohibited for investment companies, with the exception of those concerning real estate assets. This practice leads to conflicts of interest, underlines the summary note of these controls, because it induces a risk of multiplication of purchase/sale operations with the aim of generating commissions. These commissions represented, between 2018 and 2020, 17% of the turnover of two of the five management companies that were subject to an in-depth audit.
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This decision, validated by an order from the Minister of the Economy published in Official newspaper on May 19, will lead to a modification of the AMF’s doctrine which must still specify the implementation of this change, according to the press release.
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The AMF has also developed funds whose investment method is similar to the passive management, because it is indexed to the evolution of a benchmark index, which nevertheless requires high costs. From now on, investment companies must put in place procedures to better identify funds. The Authority also regretted the lack of transparency in the process of establishing management fees, and the criteria taken into account in their development.
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