The Netherlands Authority for the Financial Markets (AFM) confirms that on 23 November 2011 it revoked the licence of property management company Homburg Invest Inc (HII). HII held an AFM licence as a collective investment company (investment company without a manager).
The AFM commenced its investigation into HII in 2009 and imposed an order for incremental penalty payments in April 2010, because HII failed to comply with the AFM's requests for information in whole and in time. Measures to ensure that HII's business operations became controlled and ethical were not successful either.
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On 9 September 2011, Homburg Invest Inc. submitted an application in Canada for protection against its creditors on the basis of the Companies’ Creditors Arrangement Act (CCAA). This application was granted by the Canadian courts.
HII is a foreign company incorporated under Canadian law and has its registered office in Canada (Nova Scotia). HII issued rights of participation as a collective investment company; these rights are listed as shares at NYSE Euronext Amsterdam. Revocation of the licence means that the listing will have to be terminated in time.
HII also issued bonds in addition to shares. The bonds are not covered by the licence the company held as a collective investment company. The bond holders invested on the basis of a prospectus. The Dutch rules pertaining to the separation of assets does not apply to the bonds, nor does the Investor Compensation Scheme.
Please note that this does not concern the Dutch company Homburg Capital B.V. Homburg Capital B.V. has an AFM licence as an investment firm and as manager of a collective investment company. This company offers various (property) investment products. Examples include Homburg President, Homburg Eastern Europe Fund and Homburg MediArena.
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.