OPCI: a regulatory framework shaping the future

After February 2018, this is the second time that the CCSM has organised an event on the theme of real estate collective investment undertakings (OPCI). The objective? To present the legislative and regulatory framework governing this new instrument and to discuss the future prospects it offers on the Moroccan capital market.

The OPCI is a new investment vehicle that makes it possible to mobilise long-term savings and channel them into financing the real estate system. At the heart of this exchange organised by the CCSM, three aspects were developed: the regulatory framework, the accounting framework, and also the tax regime for OPCIs in Morocco. Opened by Pierre Leretz, Vice-President of the CCSM, the debate was enriched by the expertise of three distinguished guests: Ikhlas Mettioui, Director of Asset Management and Savings Protection at the Moroccan Capital Market Authority (AMMC), Mohamed Boumesmar, Chairman of the OPCI Accounting Committee, and Mohamed Hdid, Chairman of the Taxation and Foreign Exchange Regime Committee at the CGEM.

The outline of the legislative and regulatory framework for OPCIs

Among the legislative advances, AMMC circular No. 02/19 on the approval and operation of OPCIs was published this year. The experts present thus pointed out that the regulatory framework for OPCIs has finally been defined in Morocco, with new requirements.

From now on, each management company is required to put in place arrangements relating to permanent and continuous supervision by the AMMC. On the accounting side, several issues and uncertainties were discussed: the conditions for exemption from corporate income tax (IS), the partial disposal of contributed securities, registration duties on the creation of an OPCI, and also the distribution of dividends from subsidiaries that have been subject to IS.

A young industry building its future and its sustainability

During this debate, the experts also announced the launch of several financial education initiatives for professionals, such as the publication of a guide to support them in OPCI management activities and the creation of a working group with the Casablanca Stock Exchange to develop stock market listing. The OPCI is part of a drive to breathe new life into the capital market. Ikhlas Mettioui, Director of Asset Management and Savings Protection at the AMMC, stressed that “the general public must be made aware of the advantages of this new tool, the OPCI, but also of its risks, particularly those related to liquidity, of which everyone must be informed ”. Initially intended for institutional investors, OPCIs will be accessible to the general public in a few years’ time, once the booming market has been established and developed.

“This round table was an opportunity to share with the public the various stages of progress concerning the OPCI. Although a law was adopted in Morocco in 2016, a number of regulatory texts subsequently had to be put in place, notably AMMC circular No. 02/19. The support framework for this new industry is overseen by the AMMC, which carried out a benchmarking exercise drawing on international best practice, in order to ensure a successful and secure start for our industry.” Ikhlas Mettioui, Director of Asset Management and Savings Protection, AMMC “Thanks to this event, we were able to have a wide-ranging discussion with professionals from the sector at all levels. The Moroccan environment is evolving with regard to OPCIs. The next steps? We need to think about integrating these instruments into savings and life insurance, as has been done in Europe. It is through this approach that the general public will be able to take ownership of OPCIs.” Mohammed Bousmemar, Chartered Accountant, Chairman of the OPCI Accounting Committee “This round table, which follows on from the previous one, is very important because it makes it possible, above all, to focus on the legal, tax and regulatory origins of OPCIs. It is a new product whose contours must be defined. And it is necessary to provide information on the recent developments of this new product.” Mohamed Hdid, Chairman of the Taxation and Foreign Exchange Regime Committee at the CGEM