The Financial Markets Authority (AMF) reported on Wednesday numerous inadequacies in real estate investment products, which do not sufficiently take into account the different types of owners.
The AMF looked at real estate investment companies (SCPI) with dismemberment. These financial investments differentiate the rights of investors in bare ownership, who have the property, and those in usufruct, who use the property and receive the income but must also pay the indirect costs. Highlighting the complexity of this type of investment, the regulator noted numerous inadequacies in the practices of the four credit institutions or investment companies that it examined between April and August 2023 in a targeted inspection (spot).
The respective profiles of the bare owner and the usufructuary present notable differences, due to which this type of investment cannot be assimilated to an acquisition of SCPI shares in full ownership, that is to say an investment in a placement where all holders have the same rights, notes the AMF.
Insufficient or even erroneous information
The income received, the fees and costs incurred, the liquidity and the investment horizon are different, but, for all that, the regulator has observed very limited consideration of these specificities by the controlled establishments.
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The market policeman criticizes certain companies in particular for having provided insufficient or even erroneous information to their clients concerning the costs and charges of these investments and the four companies audited tended to rely too much on the responsibility of the partner management companies, to the detriment of the clients.
Although spot inspections are neither a position nor a recommendation, they allow the AMF to send clear messages to the Paris financial center on the good and bad practices that it identifies.
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