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Screenshot of a breaking news alert e-mail from Q2 2017
The Autorité des Marchés Financiers (AMF) is warning French investors about the Keystone Fund. This Luxembourg alternative investment fund (AIF), which takes the form of a UCITS, is not authorised for sale in France.
Keystone Fund is a Luxembourg alternative investment fund (AIF) known as a Specialized Investment Fund (SIF) and has two sections: KEYSTONE REAL ESTATE PLACEMENT and KEYS PLACEMENT.
This product has been offered to French investors, both private individuals and professionals, in many cases via financial investment advisers (FIA).
However, this UCITS is not authorised for sale in France, contrary to what its advertisements claim. The Luxembourg UCITS Keystone Fund does not currently meet the conditions for a European passport, which it would need to be marketed to professional investors in France. Furthermore, under no circumstances may it be marketed to non-professional investors.
The AMF also alerts investors that the presentation materials for the Keystone Fund and its two sections, which are being used in marketing efforts, contain unclear or misleading information.
Lastly, 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.