The AMF is seeking fines of 475.000 euros against Kerdiz Finance and its directors

Around twenty grievances were brought against them, including breaches of obligations of "honesty", "loyalty" and "professionalism" towards their clients in particular, as well as in the management of possible conflicts of interest, the representative of the AMF college listed at the hearing.

Given "an extraordinary number of serious breaches", the latter requested a fine of "300.000 euros" against the company, "100.000 euros against its former managing director and current chairman, and "75.000 euros" against its former deputy managing director.

He also requested a ban on practicing for both managers and for the company.

The core of the alleged breaches revolves around bond loans from several companies linked to the Vivat Multitalent group, starting in 2020, and whose objective was to invest in real estate projects in Germany.

These "structurally over-indebted" companies based in Liechtenstein were "specifically formed to carry out one or two bond issues to finance future acquisitions" and had "no significant assets" to secure creditors.

And contrary to what Kerdiz implied to its clients, the Vivat Multitalent group had "no capital link" with these companies, which prevented it from being a solid guarantor in case of default, explained the AMF rapporteur.

Despite these risks, these products "were absolutely not toxic" and "generated customer satisfaction" without "any harm" and "customers continued to invest in them after we stopped distributing them," argued the company's lawyer.

Kerdiz was also criticized for not sufficiently highlighting Vivat's nearly 30% stake in its capital and for not carrying out external audits "to manage the risks of conflicts of interest" arising from this situation.

Kerdiz has also "allowed itself to be presented ambiguously" on several occasions as an "investment services provider" or "in the process of being approved", even though the AMF had refused it this qualification.