French Monetary and Financial Code
In forceI. - The formation, transformation, merger, demerger or liquidation of an undertaking for collective investment in real estate is subject to approval by the Autorité des marchés financiers. The authorisation file, the content of which is set by the general regulations of the Autorité des marchés financiers, describes in particular the investment policy that the undertaking for collective investment in real estate intends to pursue and its financing options, in particular the use of debt.
II. - In accordance with the conditions laid down in the general regulations of the Autorité des marchés financiers, the regulations or articles of association of an undertaking for collective investment in transferable securities may reserve the subscription or purchase of units or shares to no more than twenty investors or to a category of investors whose characteristics are defined in the information document provided for in III.
The custodian or the person designated for this purpose by the regulations or the articles of association of the undertaking for collective investment in transferable securities shall ensure that the subscriber or purchaser is an investor mentioned above.
III. - The Autorité des marchés financiers defines the conditions under which undertakings for collective investment in transferable securities must inform their subscribers and may be advertised, in particular by audiovisual means, or canvassed. The general regulations of the Autorité des marchés financiers specify the content of the information document that must be prepared by these undertakings.
IV. - The Autorité des marchés financiers may withdraw the authorisation of any undertaking for collective real estate investment.
