The AMF and the ACPR take stock of the mistakes of intermediaries

In its 2021 annual report, the ACPR and the AMF’s joint bank insurance bank identified several shortcomings in the practices of intermediaries during audits. The ACPR points to shortcomings in the application of the duty of advice to insurance intermediaries (IAS) – who often also act as financial investment advisers (CIFs) – in the marketing of life insurance contracts. To the point of recalling the basics: “Intermediaries must ensure that the proposed investments are tailored to the requirements and needs of customers, not proposing products that meet their risk profile, in particular their investment horizon and their tolerance, determined from accurate information gathered from these customers “write the authors of the report.

Key pre-contractual information documents from the regulation. Priips are not always discounted enough because customers were le temps d’en prendre connaissance. The information on fees is incomplete, with the same communication as unit management (UC) fees and fees charged for media managers. “Customers are not able to appreciate the real performance of the proposed media and the impact of these various taxes on the performance of the contract.», pushes the ACPR. This lack of information can come from the distribution chain when the intermediary who runs the network has not found a suitable underwriting tool available to sales people. Le Pôle commun will focus in 2022, in particular on remuneration differentiated according to the type of support sold “Likely to give rise to conflicts of interest, which are not, however, always identified as such». corpse incentives new ones under the projector’s headlights.

Similarly, investment service providers (PSIs) do not always offer sufficiently developed client knowledge questionnaires to recognize the information needed to assess the evaluation of the profile recommendation. Gap categorization procedures, unjustified diversification, lack of traceability of trade and recommendations are also noted.

On the CIF side, the shortcomings concern the lack of due diligence on the distribution of products distributed (legal characteristics, marketing authorization in France, identification of the target market …). The AMF has recently repeatedly sanctioned CIFs for marketing unauthorized foreign investment funds (FIA) under foreign law in France. Since the second half of 2020, the AMF has set up an exchange device with CIF professional associations to exchange products with high risks of mis-marketing and to report any breaches committed by their members. Unlike professional associations approved for compulsory membership of the IAS and intermediaries in banking and payment services (IOBSP) which cannot carry out their checks – control is prohibited by the insurance distribution directives (DDA) – the associations of CIFs have a power of control that they can exercise at the request of the ACPR.

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