Knowledge Base
Ensure that client interests take priority
Which article of the AMF General Regulation details the obligations for managing conflicts of interest?
Articles 313-18 to 313-24 of the AMF General Regulation detail the specific obligations concerning the management of conflicts of interest. Article 23 of MiFID II and Article L.533-10 of the Code monétaire et financier establish this obligation.
What type of securities caused the serious breach at H2O AM in January 2023?
The H2O AM case was sanctioned because it invested in illiquid ineligible securities to the detriment of unitholders. This constitutes a serious breach of the primacy obligation.
What sanction was imposed on CIC Sud-Ouest in June 2023 for breach of the transparency obligation?
The CIC and CIC Sud-Ouest decision was sanctioned with a fine of 250,000 euros for failure to implement an effective assessment system combined with a breach of the obligation to provide clear information on costs and charges.
What are the six types of conflicts of interest identified in the comprehensive risk mapping?
According to the text, the conflicts of interest risk mapping identifies six specific types: exercising inappropriate influence on investment decisions, capital links with issuers or product providers, remuneration received from third parties likely to bias recommendations, overlapping incompatible functions, personal interests of employees in certain transactions, and conflicts between different clients of the institution.
The separation of activities through 'Chinese walls' is an optional measure to prevent conflicts of interest.
The implementation of 'Chinese walls' is an essential organisational measure to prevent the flow of sensitive information between proprietary trading and third-party trading activities. It is therefore mandatory and not optional.
Inducements must always be accepted if they improve the quality of the service provided.
Inducements (remuneration or benefits received) must not undermine the obligation to act in the best interests of the client. They are only acceptable if they actually improve the quality of the service provided. The statement is therefore false because it omits this condition.
Categorize items by dragging them to the appropriate zones
Items to categorize:
Types of conflicts of interest
Management measures
Types of conflicts concern situations where the professional's interest could conflict with the client's interest. Measures are mechanisms put in place to prevent or manage these conflicts.
Categorize items by dragging them to the appropriate zones
Items to categorize:
'Information barriers'
'Monitoring and control'
'Document management'
The measures include information barriers (Chinese walls), monitoring procedures, remuneration rules, and sequential controls. The conflicts register is a crucial tool for tracking.
Article 314-13 of the AMF General Regulation
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Article 314-13 requires prior information to the client on all remuneration, commissions and non-monetary benefits received from third parties. This transparency is an essential pillar for ensuring the primacy of client interests.