In July, a client sought the help of the mediator of the Autorité des Marchés Financiers (AMF). The bank adviser had forgotten to send the client’s subscription form when buying shares in a real estate investment company (SCPI). Compensation was paid to him. But for the customer, it was not enough.
The facts took place in November 2020. A bank client subscribed to SCPI shares on the recommendations of his bank advisor. However, even after expiry of the period of entry into possession of 5 months, he still does not receive any dividend. He then contacts his adviser? He simply forgot to send the subscription form to the management company of the SCPI.
The period of entry into possession for the purchase of SCPI shares
Investing in SCPIs presents a risk: neither the capital nor the return are guaranteed. In addition, SCPIs are invested in real estate assets. Each new subscription amounts to a real property holding. Acquisitions, as well as their rental, do not happen instantaneously. There is therefore a period of entry into possession, during which the investor is not remunerated.
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Compensation deemed insufficient?
The bank concerned then returned the funds to its client, who also requested compensation equal to the income he would have had to receive if his subscription had been registered. The establishment accepted and the client received the equivalent of the income not received between the end of the period of entry into possession of the shares and the date on which his funds were returned to him.
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But he considered this compensation insufficient. And for good reason, he wanted to reinvest his shares in another SCPI and was therefore going to have to wait another 5 months before receiving rent shares. He therefore asks for more compensation, which is refused. In July, he ended up calling on a mediator.
The mediator’s conclusions
- The establishment recognized its error: the subscription form for the shares had not been sent to the management company.
- On the other hand, he was not aware of his client’s wish to cancel the subscription. At that time, the client had not expressed to the establishment in question his desire to subscribe again. It was therefore not legitimate to ask the establishment to compensate him for this. Moreover, the funds initially intended for this investment having been returned, he had free disposal of them and nothing prevented him from investing them.
- Compensation based on income not received during the period extending from the return of funds to the new subscription was not justified, according to the mediator.
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Investing in SCPIs directly via your bank is quite possible, but under certain conditions. The investment choices in SCPI are already more limited than via life insurance. In addition, banks require that you are already a customer with them and that your bank account is well supplied. As it offers investment in SCPI most often via a private management company, significant funds are necessary, in particular to offset the high subscription costs (up to 10% of the amount invested).