France’s AMF imposes EUR 10m in fines in 2016

Maria Nikolova

AMF’s Chairman insists that the lower amount of fines does not mean that the regulator has become less harsh.

Over the past several months, France has made the headlines when it comes to strict regulation of the online trading industry. In August last year, the French financial markets regulator AMF opened a public consultation regarding advertising of high-risk financial products like binary options. The proposed ban on all types of advertising of such products was subsequently included in the Sapin 2 law.

One would think that such decisive actions when it comes to legislation would result in a rigorous approach to sanctions, especially monetary penalties. Not quite so.

In an interview for French newspaper “Les Echos”, Gerard Rameix, Chairman of AMF, says the total amount of fines imposed by the regulator in 2016 reached humble EUR 10 million. The amount is less than half the total of EUR 21.3 million for 2015.

Mr Rameix, however, insists that the lower amount of monetary penalties for last year does not mean that the regulator has become less strict. He adds that in 2017 the sanctions will be more considerable.

For what is worth, we should note that the total for 2015 was boosted by a one-off fine of EUR 10 million, so it is normal that the comparison is tilted in favor of 2015. The annual report for 2015 shows that the AMF Investor Information Team (Epargne Info Service), which assists and informs individuals and professionals, handled 14,424 requests, up 19% from 2014. Individual investors accounted for 75% of the requests. About 82% of the complaints had to do with sites promoting foreign exchange market or binary option investments.

There is nothing astonishing then that the French regulator made such a decisive step regarding curbing binary options and other high-risk financial products’ advertising. In the interview for “Les Echos”, Mr Rameix adds that the AMF is completing the consultations on the control mechanisms to be implemented under the Sapin 2 law.

Following the news that the new law was banning all sorts of partnerships concerning the advertising of such products, a number of French football clubs dropped their partnerships with binary options brands. The list of teams to have done so includes PSG, Olympique lyonnais and OGC Nice.

Read this next

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

<