89 MARTINDALE CENTER FOR THE STUDY OF PRIVATE ENTERPRISE and their future role in the country can be evaluated through the progress made in each category. OPCI framework To comprehend how OPCIs factor into the financial ecosystem, it is crucial to understand how they function. According to the AMMC, an OPCI is defined as “a regulated investment vehicle whose main purpose is the acquisition or construction of buildings exclusively for their rental” (Moroccan Capital Market Authority, 2022, p. 8). OPCIs are further segmented into two categories based on their legal structure. The first is called a societe de placement en immobilier (real estate investment company). Its main legal characteristic is that it is structured as a corporation. The second, known as fonds de placement en immobilier (real estate investment funds), is structured as a co-ownership, where the resulting fund does not possess its own legal identity (Himmich & Hajoui, 2017). Along with the legal classifications of various OPCIs, the underpinnings of such an investment must be considered. OPCIs are open to a variety of investors, including qualified individuals, legal entities, and investors with the “skills and means necessary to understand the risks inherent in securities transactions” (Dahir Providing, 1993, p. 11). One potentially beneficial, albeit cumbersome, feature of OPCIs is the stringent registration requirements imposed by the AMMC. OPCIs that are limited to qualified investors have more relaxed portfolio allocation and registration requirements. OPCIs as a tax and legal structure interact with various external stakeholders, such as appraisers and government authorities (Figure 1). In their creation, OPCIs must have an overarching management company that must request both an approval of its draft management regulations and an endorsement of the OPCI information document. Both requests flow through the AMMC, which can challenge the documents and request more information from the management company, in an effort that likely creates a more transparent investment vehicle (Moroccan Capital Market Authority, 2022). Figure 1 Process of OPCI Creation Source: Moroccan Capital Market Authority, 2022. Source: Moroccan Capital Market Authority, 2022. Process of OPCI creation
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