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AFM imposes administrative fine on Momentum Real Estate B.V. and on Momentum Development B.V.

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On 7 September 2009, the Authority for the Financial Markets (AFM) imposed an administrative fine on Momentum Real Estate B.V. On the same day, it also imposed an administrative fine on Momentum Development B.V. Both fines were reduced from the standard fine of € 96,000 to an amount of € 24,000.

The fine was imposed on Momentum Real Estate because, in the period from 20 June 2007 to 25 August 2007, Momentum Real Estate offered MRE Bond III in the Netherlands without having a generally available prospectus approved by the AFM.

The total countervalue of MRE Bond III is less than € 2,500,000. On this ground, the offering of MRE Bond III might have been eligible for an exemption from the obligation to have a prospectus approved by the AFM. However, this exception is subject to the condition that Momentum Real Estate states in the offer documentation that it is not obliged to have a licence in accordance with the Financial Supervision Act (Wft) and is not supervised by the AFM. Momentum Real Estate did not fulfil this condition. As a consequence, Momentum Real Estate did not qualify for the exemption and was required to have a prospectus approved by the AFM. Given that Momentum Real Estate did not compile said prospectus, Momentum Real Estate acted in violation of Article 5:2 of the Wft.
 
The fine was imposed on Momentum Development because, in the period from 24 August 2007 to 5 October 2007, Momentum Development offered MRE Bond IV in the Netherlands without having a generally available prospectus approved by the AFM.

The total countervalue of MRE Bond IV is less than € 2,500,000. On this ground, the offering of MRE Bond IV might have been eligible for an exemption from the obligation to have a prospectus approved by the AFM. However, this exception is subject to the condition that Momentum Development states in the offer documentation that it is not obliged to have a licence in accordance with the Financial Supervision Act (Wft) and is not supervised by the AFM. Momentum Development did not fulfil this condition. As a consequence, Momentum Development did not qualify for the exemption and was required to have a prospectus approved by the AFM. Given that Momentum Development did not compile said prospectus, Momentum Development acted in violation of Article 5:2 of the Wft.

The party/parties concerned can request a judicial review of the AFM's decisions. If you have any questions or complaints, please contact the AFM's Financial Markets Information Line: 0900-5400 540 (0.05 euro per minute).

The AFM promotes fairness and transparency within financial markets. We are the independent supervisory authority for the savings, lending, investment and insurance markets. The AFM promotes the conscientious provision of financial services to consumers and supervises the honest and efficient operation of the capital markets. Our aim is to improve consumers’ and the business sector’s confidence in the financial markets, both in the Netherlands and abroad. In performing this task the AFM contributes to the prosperity and economic reputation of the Netherlands.

The AFM is committed to promoting fair and transparent financial markets.

As an independent market conduct authority, we contribute to a sustainable financial system and prosperity in the Netherlands.

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