On 16 January 2012, the AFM imposed an order for incremental penalty payments on Centaurus Investments B.V. (Centaurus) from Willemstad in Noord-Brabant. Centaurus fails to comply with the AFM's requests for information.
Centaurus has been unable since 30 June 2011 to pay the interest on bonds of the Centaurus Residential Fund IV property fund to the bond holders. Centaurus has informed the AFM that it is not able to comply with its interest obligations as regards the other funds.
The AFM requested, inter alia, an organisational chart, management reports, prospectuses, financial statements, a signed maintenance declaration, the cash/bank/giro ledger, bank statements, trial balance and deeds of ownership pertaining to the property. The AFM requires the requested information in order to be able to assess whether Centaurus has provided all essential information on the funds to the bond holders. Centaurus may be performing an unfair trade practice, as described in the Civil Code, by not providing essential information to bond holders.
The order for incremental penalty payments may increase from €4,000 up to a maximum of €80,000 for each day or part thereof that Centaurus fails to comply with its duty to provide information. Interested parties may submit the AFM's decision to the court for evaluation.
If you have any questions or comments you can contact the Financial Markets Information Line on: 0800-5400 540 (gratis).
The AFM has tightened its supervision of non-listed investment properties. The AFM has intensified its supervision pursuant to signs of incorrect valuation of the investment property, fraud and financial problems at various providers. The AFM observes that investors are often not, or insufficiently, informed about such products. This means that they are in fact misled.
In order to improve its supervision, the AFM has, among other things, developed a property risk radar. Property funds, whether these are supervised by the AFM or not, are screened with the aid of risk indicators. The AFM has initiated investigations at a number of property funds on the basis of this screening. The tightening of supervision is in line with the integrated approach of the government to counter abuse in the property sector.
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.