CNMV mandates sanction to Housers for committing infractions

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

The real estate crowdfunding platform Housers has to face an economic sanction mandated by the National Securities Market Commission (CNMV). Specifically, the company must pay 215,000 euros for having failed to fulfill several obligations contemplated in the regulations for the promotion of business financing.

According to the BOE, the fine is due to two very serious infractions and another serious one that explains as follows. An amount of 90,000 euros for the serious and repeated breach of the obligations of behavior referred to in article 60 of the aforementioned rule, for the violation of the principle of neutrality and of action in the best interest of customers, in relation to information on returns, fees and commissions, risks and warnings.

Second, the platform must pay another 75,000 euros for the realization, not merely occasional or isolated, of activities that do not appear in its authorization and, finally, another 50,000 euros for the publication of a project that does not meet the conditions of the article 49 of the aforementioned standard.

However, the body led by Sebastián Albella argues that this resolution only has administrative consequences, "without prejudice to the jurisdictional review powers that correspond to the Contentious-Administrative Chamber of the National Court, competent to know the resources that in their case has been brought or could be brought."

For a while, Housers operated as a crowdfunding platform without having the corresponding authorization from the market supervisor. In addition, the experts warned at the time that there was a conflict of interest, since the company's dome also appeared as a proxy for the companies that bought real estate, so they could make decisions unilaterally. And there were many who questioned how the company managed to be profitable.

The platform became famous a few years ago with the slogan "invest 50 euros and you already own a property", although investors really have what they have are shares in limited companies that are those that buy the assets. In recent months several Housers punctures have been known, such as the one suffered in Jávea (Alicante), although in its first four years of life it has managed to arouse the interest of more than 110,000 investors and capture about 94 million euros.

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

Join us November 12-15 for the Property Portal Watch Conference Madrid 2019.