Its investigation activities enable the AMF to verify compliance with applicable laws and regulations, prevent and punish offences and build public trust in the financial sector.
The AMF may conduct an investigation if it has reasonable grounds to believe that an offence has been committed under a law it administers. It may also launch an investigation to enforce or punish offences under the laws and regulations it administers.
Main steps in an investigation
1– Source of investigations
The AMF receives and handles a large number of investigations involving potential offences under the laws it administers.
The information used to open these investigations is gathered from various sources or programs, including reported suspicious situations, the Self-reporting and Cooperation Program and the Whistleblower Program. The information may also come from the supervisory activities conducted by the AMF with respect to the financial markets.
The AMF may also receive information from provincial, national and international regulators and partners under cooperation agreements.
Cases are assessed so that appropriate actions may be taken. They are then forwarded to the relevant investigation teams.
Reporting a suspicious situation
Anyone may report a suspicious situation by completing a form.
In addition, the AMF may launch any investigation if it has reasonable grounds to believe there has been a breach of a law it administers.
Whistleblower Program
Whistleblowing is when an individual (a whistleblower) reports information to the AMF that may show a breach of a law administered by the AMF.
Whistleblower reports are essential in order to detect more violations, taking action quickly and reducing the impact of violations. The law prohibits reprisals against whistleblowers.
Self-reporting and Cooperation Program
Under the AMF’s Self-reporting and Cooperation Program, sanction relief may be granted to natural or legal persons that self-report by voluntarily disclosing information regarding breaches or failures they have committed and/or cooperate fully with an investigation into their activities.
Market oversight
The AMF has a market oversight framework for detecting offences related to stock market trades, specifically insider trading, the use and disclosure of privileged information and market manipulation.
Finally, as part of its activities, the AMF also conducts detection initiatives.
2– Investigation methodologies and tools
The AMF may, on its own initiative or on request, conduct any investigation if it has reasonable grounds to believe a breach has been committed under a law it administers. AMF investigations are conducted in private.
The AMF may gather administrative and criminal evidence to prove that an offence has been committed.
Under collaborative agreements, the AMF may request the assistance of regulators and national and international partners to gather information and documents.
Documentary evidence
Documentary evidence is obtained through various methods, including subpoenas, production orders and search warrants.
As part of an investigation, the AMF may also require a registrant or reporting issuer to disclose all required information.
Testimonial evidence
Testimonial evidence allows the AMF to collect testimony relating to the events under investigation.
Anyone who fails to appear or refuses to produce documents requested by the AMF is guilty of an offence and is liable to a fine.
End of the warning
3– Analysis and recommendations
In light of the facts, the investigator concludes the report with recommendations on follow-up actions to be taken.
Transfer to the AMF’s litigation team
Based on the investigator’s recommendations, the investigation file may be forwarded to the Direction du Contentieux (AMF Litigation) so that legal proceedings can be initiated. There are various possible outcomes for the case, including:
- A warning letter or reminder of applicable regulations
- The signing of undertakings to comply with said regulations
- Alternative measures that may include the payment of fines or the closure of the file without further enforcement action
In light of the facts, the investigator concludes the report with recommendations on follow-up actions to be taken.
See the decisions made by the courts and the proceedings initiated by the AMF.