French AMF warns against unlicensed website

fma warning

The Autorité des marchés financiers (AMF) has just warned the public about the activities of the website, which encourages retail investors to invest in various projects and falsely claims to have a crowdfunding adviser (CIP) license.

The website proposes investments in various projects and states in its general terms and conditions of sale that its operator is authorised to carry out crowdfunding adviser activities.

However, this platform has no legal license, either as a CIP or an investment services provider (ISP), authorising it to offer investors in French territory subscriptions to securities through a website meeting certain conditions.
In addition, UK regulatory authorities have issued a warning regarding the platform on the grounds that it is a ‘clone firm’ that has stolen the identity of another company.

The AMF recommends that investors do not take up these solicitations and do not communicate them to third parties, in any form whatsoever.

The AMF reminds investors and individuals responsible for marketing investment products 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 (authorisation/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.

The official warning can be seen here.

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