This is the first time that financial websites have been banned by a French regulator AMF

14-01-2021

The French regulator AMF, the Financial Supervisory Authority, is acting in the interests of local investors, trying to protect them and to increase market control. Following the same action by CONSOB in Italy, AMF issued a statement about its right to take legal action to block the Internet resources of companies that violate regulations.

The French financial sector regulator has reported a steady development in the tangible asset market in recent times. AMF has been monitoring a rise in activity calling for investments in goods such as alcoholic beverages, jewelry, works of art, and even livestock. At the same time, returns are implied to be the same as those from investing in financial markets.

The regulator’s web page includes a so-called white list of companies licensed to agitate and trade in such non-standard assets for investment. At the same time, they are included in the class of “other assets” that require the mandatory filing of informational documentation and separate authorization by AMF representatives.

On October 26, a civil trial was held in Paris, as a result of which the court decided to block access in France to six sites that promote investments without registration under French financial laws. In addition, the court confirmed the regulator’s authority to block Web sites operating in the niche of other assets.

The offending companies include ehcapital.fr; providenceinvesssement.com; nancialpartners-ltd.com; alpha-connectcapital; asse-groupe.com; bearbull-patrimoine.com; ideesnances.com/campagne-containers-1; patrimoine-ambion.com; pfm.golden-malt.com/store; privateclient.online and sudfactoring.online. These domains were blacklisted as recently as the fourth quarter of last year.

Diamonds are also often cited by sites on the offending list, which has been continually added to by the regulator since 2017. Such financial market service providers are not licensed for investment activities.

According to the regulator’s recommendations, ways to protect individual investors from unscrupulous dealers include monitoring company information, having a permit, exercising basic vigilance, and precautionary measures.

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