The Commission de Surveillance du Secteur Financier (CSSF) handed Natixis Wealth Management Luxembourg a €108,900 (£92,480, $116,460) fine on 14 April 2022.
The fine, which was announced on 27 May 2022, was the result of an on-site inspection carried out by the CSSF in 2020 during which “severe infringements to the provisions applicable to the depositary function of the Alternative Investment Fund Managers (AIFM) Law were found”.
The CSSF said that the deficiencies relate to safekeeping obligations of other assets, oversight duties, cash flow monitoring, as well as “sound and prudent management of the depositary activities”.
It added: “In determining the amount of the administrative fine, the CSSF duly took into consideration the cooperation of the bank and the remedial actions undertaken by the bank in order to address the deficiencies.”
Natixis Wealth Management said in a statement: “Natixis Wealth Management Luxembourg took note of the notified decision and has paid the fine, thus marking the end of this procedure.
“As the primary commitment of Natixis Wealth Management Luxembourg is to comply with legal and regulatory requirements, it has actively cooperated with the regulator by taking corrective measures and by setting up a reinforced risk control system.
“As part of its 2021-2024 medium-term plan, Natixis Wealth Management has decided to put an end to this non-strategic custodian activity, which has been managed in extinction since September 2021. To date, all the anomalies subject to the fine have been corrected within the existing system.”
Based in France and Luxembourg, Natixis Wealth Management offers wealth management and financial solutions to business owners, senior executives and wealthy families.