Real estate fund management companies: lessons learned from the controls carried out by the AMF

"The AMF is sharpening its focus on asset and property management functions".

Real estate fund management companies (SGP) perform two main functions relating specifically to the real estate assets held by the funds: asset management (AM) and property management (PM). The activities of these functions are not defined by regulations and may, under certain conditions, be outsourced.

In 2019, the AMF carried out SPOT (Supervision of Operational and Thematic Practices) controls in order to identify good practices in this area. The lessons from SPOT checks have an educational objective and constitute an assessment, at a given point in time, of observed market practices.

The report produced by the AMF following these checks enables the organizational choices of the audited companies to be compared, but above all it is an excellent source for identifying best practices in:

• the procedures to be implement,
• the selection and monitoring of real estate providers,
• information for holders / investors concerning the use of real estate services,
• the management of conflicts of interest,
• control devices.

In this document, we have highlighted the main findings and best practices resulting from these AMF controls.

These controls have enabled the AMF to better understand these AM and PM functions. We can therefore expect increased vigilance.

In addition, by retaining the outsourcing of real estate services as a priority supervision theme, the AMF recognizes the specificity of real estate fund management companies. We largely share this observation. Thus, the added value of our service offering is based on an excellent knowledge of the regulations, of course, but also of the real estate businesses - in particular AM and PM.

Download our summary by clicking on the link: Summary Akeance Consulting