AMF Fines Carat GP and Directors €2.5 Million for Compliance Failures

The French financial regulator AMF has imposed fines totaling €2.5 million on Carat GP, a financial investment advisory firm, and its two directors, Jimmy Guinet and Sébastien Renaud, following serious breaches of regulatory obligations. The Enforcement Committee made the decision on 5 November 2025 and issued a permanent ban on Carat GP and Mr Renaud from operating as a financial investment advisor. Mr Guinet received a ten-year ban.

The Committee found that Carat GP lacked a secure archiving system, which is essential for its operations, and failed to comply with its professional responsibilities. The firm’s procedural systems for product governance, conflict of interest management, complaints handling, and anti-money laundering and combating the financing of terrorism were all inadequate. The company also did not produce required regulatory documentation.

The investigation further determined that Carat GP had not acted honestly, fairly, or in the best interests of its clients. Mr Renaud exploited his position to offer undocumented investments to clients, while the firm failed to implement systems to prevent or detect such actions. The company also did not cooperate fully with the inspection mission, breaching its obligations of diligence and transparency.

For the first time, the Enforcement Committee held that the company’s directors had breached regulations in their personal capacities. Mr Renaud failed to undergo annual professional training, did not act diligently during the inspection, and improperly received client funds in his personal accounts. Mr Guinet did not take steps to prevent Mr Renaud from receiving funds for undocumented investments, thereby breaching his obligation to ensure Carat GP acted honestly and in the best interests of clients.

The Enforcement Committee, comprised of judges and professionals, has the authority to sanction individuals and firms for violations of AMF-regulated laws. It can approve settlement agreements and contributes to investor education by clarifying regulatory requirements.

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The AMF is an independent authority responsible for ensuring that savings invested in financial products are protected, supervising the orderly functioning of financial markets, and providing investors with accurate and reliable information. Through initiatives like this, the AMF continues to advance financial literacy and foster prudent investment behaviour among emerging investors in France.

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