French regulator Autorité des Marchés Financiers fined Natixis Asset Management €35 million ($41 million) for charging clients redemption fees that were not outlined, said an AMF news release Wednesday.
The French financial services authority found "inaccurate and misleading information" was given in some of the controlled fund prospectuses by Natixis, indicating the redemption fees were applied in half of the funds and were used to offset the costs of purchasing or selling assets.
According to AMF, Natixis charged its formula fund clients "undue and unjustified charges" totaling €15.6 million between 2012 and 2015. The charges were the result of a transfer of net redemption fees of the funds' net assets to a debt account, which resulted in a decrease in the net asset value of these funds and inclusion into a Natixis account.
Natixis "strongly disputes" the decision and intends to appeal it before the French Council of State, Matthieu Duncan, CEO of Natixis Asset Management, said in a statement.
The firm denies any irregularity and believes it acted in good faith and in the interests of its clients, Mr. Duncan said in the statement: "Fund holders were in no way adversely affected and were fully informed in accordance with applicable regulations."