AMF Issues Guidance on Integrating “Sustainability Preferences” for Retail Investors
The ACPR and AMF have issued joint guidance for financial
advisers on incorporating clients’ sustainability preferences when recommending
investment products, including equities, funds, and ETFs.
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The AMF said the initiative provides practical support for
professionals in sustainable finance and strives to “meet the expectations of
retail investors.”
Retail Sustainability Preferences Addressed in Guidance
Under MiFID II and the Insurance Distribution Directive,
advisers are required to consider sustainability criteria alongside clients’
financial profiles, risk tolerance, and investment objectives.
Authorities noted that advisory processes often fall short
of regulatory standards, as many clients do not provide detailed sustainability
preferences. To address this, advisers may use simplified questionnaires that
align with rules and present predefined sustainability options clearly. They
can also propose products that closely match revised client preferences if
initial choices are unavailable.
The guidance aims to update advisory processes while
ensuring that sustainability preferences are taken into account. It also
encourages professionals to pursue training in sustainable finance.
France Approves First Blockchain-Based Stock Exchange
France’s financial regulator, the AMF, approved
operating rules for LISE SA, the country’s first stock exchange built
entirely on blockchain. The platform will let small and mid-sized companies
list tokenized shares for direct retail investor trading under the EU Pilot
Regime.
LISE combines trading and settlement on a single
infrastructure, allowing real-time ownership recording on the blockchain.
Retail participants must pass a knowledge test before trading.
The platform targets French SMEs with market capitalizations
under €200 million and imposes a €6 billion total cap. Final authorization from
French banking regulators is still pending.
AMF Increases Oversight Against Fraud
Alongside innovations like blockchain trading, the AMF
continues strict enforcement against fraudulent activity. In 2024, investment
scam victims lost an average of €29,500, with younger investors most
affected.
Enforcement actions included €26.5 million in fines, 12
disciplinary measures, and the shutdown of 181 fraudulent websites.
The authority opened 56 investigations and handled over
13,000 consumer inquiries, noting that social media had become a key channel
for scams and that high-profile schemes targeted retail investors through
misleading promotions and unauthorized platforms.
This article was written by Tareq Sikder at www.financemagnates.com.
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