NETHERLANDS - The Dutch Financial Market Authority (AFM) has asked the Dutch ministry of finance to lobby with the European Commission (EC) for changes to the European Prospectus Directive, to increase the cap on supervision of real estate investments.

Under the directive, companies do not have to submit a prospectus of financial information for sales where the denomination of the securities sold is €50,000 or more.

AFM, which is currently prevented from supervising above this amount, has found the required self-regulation for mainly indirect real estate investments has still not taken off, and is therefore arguing the EU margin need be widened.

A spokesman told IPE today AFM has decided to lobby for an exemption on the rule following the failed discussions with various real estate investment bodies for greater transparency in the sector.

These discussions were dealt their final blow earlier this week when Stichting Transparantie Vastgoedfondsen (STV), an organisation for more transparency in real estate funds, withdrew from the talks.

According to the spokesman, the EC had already announced it will evaluate the directive in the near future.

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