There are more and more complaints, which often come from young and less experienced investors in the financial markets, but also changes in the subject of these complaints, the conclusions of the 2021 mediator’s reportMinistry of Foreign AffairsMrs. Mariel Cohen-Branch.
In 2021 Intermediary service Authorité des Marchés Financiers (Ministry of Foreign Affairs) received 1,867 complaints (+ 33% compared to 2020), of which 1,164 (+ 44% compared to 2020) were within its competence, other files fall under another processing loop (including half of the banking circle).
Mediator withMinistry of Foreign Affairs may not intervene if the complaint can be classified as criminal or tax. It can only act in this way if the company with which the investor has a dispute is registered in France.
L ‘Ministry of Foreign Affairs provided 763 conclusions on mediation in 2021 (+ 51% compared to 2020). The mediator’s recommendations are mostly beneficial to the plaintiffs (54%). And the level of support for the mediator’s proposals remains very high: 98% of the recommendations favorable to the applicants are followed by both parties. Only 7% of unfavorable opinions were appealed by savers (against 4% in 2020). However, note that the average processing time increases from 5.5 months to 6 months during the year.
2021: even more inexperienced investors
Low interest rates, as well as forced savings due to imprisonment in connection with the COVID-19 pandemic, have forced even more French people to turn to riskier investments in the hope of a better reward. 1.6 million investors were active in the stock markets (+1 million over 3 years). These new investors are often younger and less familiar with financial instrumentsthat the mediator inMinistry of Foreign Affairs interested judge.
90% of these complaints concern either poor execution of the order, or poor information or bad advice. Poor management is observed in only 5% of cases.
Securities transactions are considered
More than 200 complaints concern stock market orders were transferred in 2021. They concern, in particular, securities transactions (sound), whether they are distributive (for example, dividend payments or implementation BSA – warrants for subscription of shares) or warrants for reorganization (for example, Proposal for takeover or mergers), which require a good understanding of the preliminary information provided, sometimes a rapid response to the use of a particular option, and so on. And the device is even more complicated in the casesound foreign. AND better pedagogy on these topics seems necessary. It is also desirable to have certain mechanisms for the main exchange regulations on DTH – Deferred service – or in special cases, such as suspension of the course. Always with special conditions for orders in foreign markets.
Disputes about AEP gradually replace workers’ savings
Number of appeals regarding a stock savings plan (AEP) doubled in 2021 (329 complaints against 154 in 2020). The black dot applies transmission AEP and, in particular, blocking arbitration during these transfer processes. L ‘Ministry of Foreign Affairs recalls the basic recommendations for such a smooth transfer and referred the matter to the Financial Sector Advisory Committee (CCSF) in order to clarify and standardize the practice of different institutions.
The number of appeals related to employee savings continues to decline (171 in 2021 versus 260 in 2020), including recurring cases related to cases early release or inactive assets.
Among other reported topics: FIP and FCPI (exceed the standard service life FCPR), harassment and irritation during dematerialization processes (and related security measures)…
Cryptocurrencies: few files through the European passport
Due to the implementation of the European Freedom of Service Passport, the intermediary of the financial regulator of the service provider’s country has exclusive jurisdiction over disputes related to the latter’s activities (in Cyprus, most often now). AlsoMinistry of Foreign Affairs cannot process this type of file, except those related to the usurpation of the identity of an approved service provider.
But fraud do not miss; they tended to slip away from Forex to cryptocurrencies. L ‘Ministry of Foreign Affairs through its brokerage service, again calls for the greatest vigilance in these “markets”, where online brokers, digital asset service providers (PSAN), are not “accredited”, but only registered. Damage to victims of fraud can be high (average: 4,200 euros).
Appeal to the mediator withMinistry of Foreign Affairs
You can contact the mediation serviceMinistry of Foreign Affairs if you believe your institution or financial advisor has made a mistakeabout a financial product or service and that this error led to financial losses. The mediator is seized only if the professional to whom you previously filed a written complaint has not responded within 2 months.
Mediator withMinistry of Foreign Affairs can be submitted in electronic form available on the websiteMinistry of Foreign Affairs in the section Mediator or by mail:
Mrs. Mariel Cohen Branch
Intermediary of the Financial Markets Department
Exchange Square, 17
75082 Paris Cedex 02