RISK FACTORS
DESCRIPTION OF THE RISK POTENTIAL IMPACT
MITIGATING FACTORS AND MEASURES
Conflict of interest with
Cofinimmo’s investment
activities
Cofinimmo passes up an opportunity to invest
in certain assets itself.
The investments concerned are different from those of Cofinimmo.
Cofinimmo does not want to or cannot purchase these assets, either
because it feels that it already holds sufficient similar assets or because it
does not have the necessary financial means to acquire them. In the case
of co-investments (MAAF insurance agencies, for example), sharing the
risk may also be a desirable option.
Reclassification of the
Asset Management
business as a non-
ancillary activity in
the event where the
share of profits earned
exceeds 10% of the
profits of Cofinimmo
Investissements et
Services (CIS)
1. If this limit is exceeded, the regulatory
authorities may impose a penalty/fine and
demand the reduction/sale of the business.
2. Loss of the RREC status.
The Asset Management activities will be deliberately restricted so as not
to reach this limit.
Liability proceedings in
relation to losses incurred
on the portfolio managed
for third parties
Deterioration of the business relationship
with the investor who may accuse Cofinimmo
of not having sufficiently analysed the
investment products offered. Potential
payment of damages.
Cofinimmo Investissements et Services (CIS) only does business
with institutional investors which are aware of the risks related to the
investment products offered. The investment policy is clearly defined
with and approved by the investor. This policy is part of a contract
between Cofinimmo Investissements et Services (CIS) and the client. The
client’s decision to invest is based on the products offered by Cofinimmo
Investissements et Services (CIS), which criteria are defined in the
contract.
MANAGEMENT FOR THIRD PARTIES AND CO-INVESTMENTS
In 2013, Cofinimmo Investissements et Services (CIS)
1
launched an
asset management activity for third parties. It constitutes an ancillary
activity within the Group.
In addition, Cofinimmo also joins forces with third parties on some of
its investments. It materialises in the form of a share, on their behalf, in
the capital of subsidiary companies or other types of economic inter-
ests, such as the issue by these subsidiaries of mandatory convertible
bonds.
The above-mentioned mitigating factors and measures do not necessarily dissolve the entire potential impact of the identified risk. Hence, the
impact remains partially or entirely the company’s and, indirectly, its shareholders’ liability.
1
Formerly Cofinimmo France.
10