Typology of Stock Market-Related Offenses in France: An Analysis of Sanctions by the AMF since 2006

• In Event: Concurrent Session 4.2: Managerial Discretion and Reporting Offenses

Abstract

This paper presents a study intended to demonstrate how the Financial Market Authority (AMF) in France uses its regulatory and sanctioning powers with regard to brokers, listed companies and other actors (individuals) in the financial industry during the period 2006-2011. The AMF actions are evaluated over time, by examining the evolution of the number and severity of sanctions, as well as in space, through international comparisons. Overall the imposed sanctions according to both their category and the status of those sanctioned strongly indicate that few firms and brokers are sanctioned by the AMF. In addition, the AMF imposes very few administrative sanctions (reprimand or warning). Despite the increase in the maximum fines that may be imposed by the AMF, the set fines by the Enforcement Committee are very weak relative to the volume of the Paris market, to the total assets under management and to the volume of transactions on the Paris stock exchange. A comparison of the AMF statistics with those of its British and American counterparts shows a wide gap between the amounts of fines paid by fraudsters in 2006.

Authors

• Frederic Demerens, Novancia

• Dorra Najar, IPAG Business School

• Jean Louis Pare, Novancia

• Jean Redis, ESIEE Paris