Diamonds and other atypical investments: AMF welcomes the initiative taken by the ARPP

The ARPP (French advertising self-regulatory organization) has issued a recommendation in order to inform the advertising industry regarding the regulation of intermediation in miscellaneous assets. With a view to better protection for savers, the Sapin II law has introduced a change in the system: no offer on atypical investments car be directly marketed in France on without prior allocation by the Autorité des marchés financiers (AMF) of a registration number.

Wine, forests, photovoltaic panels, works of art or diamonds: there are numerous investment proposals highlighting the possibility of a financial return which are not based on financial instruments. These so-called atypical investments involve intermediation in miscellaneous assets. These proposals:

  • are subject to ex ante control by the AMF;
  • can not be advertised or directly marketed on without prior allocation by the AMF of a registration number on the information document for investors are now.

By publishing its recommendation, the ARPP wishes to bring the advertising industry’s attention regarding this new regulatory framework and calls for the respect of ethical practices.

The AMF shared that it welcomes this action and carries on its mobilization in order to better inform the public.

The AMF reminded investors to follow these safety guidelines before making any investment:

  • no advertising materials should make you overlook the fact that high returns always involve high risk;
  • learn as much as you can about the company or intermediary trying to sell you a product (authorization/certification, company history, location of head offices, etc.);
  • only invest in a product you understand;
  • ask yourself how, and by whom, the purchase price or selling price of the advertised product is set, and find out the precise terms and timeline for selling the product, especially in cases where the product invests in an asset class with low liquidity.

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Diamonds and other atypical investments: AMF welcomes the initiative taken by the ARPP

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