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17 July 2017 - SocGen to pay €450,000 euro fine for compliance breaches
Société Générale
Source - http://www.reuters.com/article/us-amf-socgen-fine-idUSKBN19Y1SZ
Where - France
Cost - 450,000 EUR
Business line - Trading and Sales

Société Générale will pay €450,000 to settle charges from French regulators that claim it violated compliance rules when producing research notes through its Global Research and Strategy department.

France’s financial regulator, L’Autorité des marchés financiers (AMF), said in a statement: “The due diligence revealed, on the one hand, breaches in the production of analyst notes, and on the other hand, failures concerning the management of privileged information.”

The investigation into SocGen began almost two years ago and has unearthed failures by the bank to properly disclose how it calculated the price target of a specific analyst note. It also revealed the bank failed to mention it previously acted as a bookrunner, (fundraiser) for the company covered by the note in question.

“Societe Generale has reinforced its compliance system for the production of research notes since 2016” SocGen told Reuters, adding that “no investor has suffered any prejudice” as a result of the alleged breaches.