In July, a client sought the help of the mediator of the Autorité des Marchés Financiers (AMF). The bank advisor had forgotten to send the client’s submission form when buying shares in a real estate investment company (SCPI). Compensation was paid to him. But for the client, it was not enough.
The facts happened in November 2020. A bank client subscribed to SCPI shares on the advice of his bank advisor. However, even after the expiry of the 5-month possession period, he still does not receive any dividend. So contact their counselor? He just forgot to send the subscription form to the SCPI management company.
The period of entry into possession for the purchase of SCPI shares
Investing in SCPI presents a risk: neither the capital nor the return is guaranteed. Also, SCPIs are invested in real estate assets. Each new subscription amounts to real estate. Acquisitions, as well as their rental, do not happen instantly. There is therefore a period of entry into possession, during which the investor is not remunerated.
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Compensation considered insufficient?
The bank in question then returned the funds to its client, who also demanded compensation equal to the income he should have received if his subscription had been registered. The establishment accepted and the customer 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 their funds were returned to them.
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But he considered this compensation insufficient. And for good reason, he wanted to reinvest his shares in another SCPI and therefore he will have to wait another 5 months before receiving rental shares. He therefore claims more compensation, which is refused. In July, he ended up calling a mediator.
- The establishment recognized its error: the submission form for the shares had not been sent to the management company.
- On the other hand, he was not aware of the desire of his client to cancel the subscription. At that time, the customer 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. On the other hand, the funds originally intended for this investment having been returned, he had free disposal and nothing prevented him from investing.
- The compensation based on the income that was not received during the period that extends from the return of funds to the new submission was not justified, according to the mediator.
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Investing in SCPI directly via your bank is quite possible, but under certain conditions. 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 properly provided. As it is proposed to invest in SCPI most often via a private management company, significant funds are necessary, especially to compensate for the high subscription costs (up to 10% of the invested amount).