Decree n°2026-341 of April 30, 2026 tightens the regulatory framework for SCI real estate vehicles and, more broadly, for funds falling under the "Other AIFs" category within French life insurance and PER retirement savings contracts. This reform has raised questions among many clients and, by extension, their advisors. Here is what actually changes, what doesn't, and how to discuss it with clients holding this type of vehicle.
What the decree says, in brief
Published in the Official Journal on May 5, 2026, the decree brings the regulatory framework for "Other AIF" vehicles, of which unit-linked SCIs are the most common example, closer to the framework already in place for other regulated real estate investment solutions (approved SCPIs, OPCIs, ELTIFs, compliant FCPR/FPCI funds). The stated goal is to offer retail investors a more consistent level of protection and greater clarity across the unit-linked offering.
The SCI-in-life-insurance market represented roughly €21 billion in outstanding assets in autumn 2025, down from nearly €30 billion at the end of 2022, against a backdrop of declining real estate returns and earlier rounds of regulatory tightening that preceded this decree.
A key distinction: existing vehicles are not treated like future ones
The most structural point of the decree, often lost in the headlines circulating about it, is this distinction: "Other AIF" vehicles already referenced in contracts can continue to be marketed, provided they adopt certain investment rules inspired by existing regulated regimes (SCPI, OPCI, or ELTIF). This adaptation does not call into question their legal structure, tax treatment, or underlying operation.
What is closed off, however, is the referencing of new vehicles under this category in life insurance and PER contracts, effective since May 6, 2026.
In other words, this is not the disappearance of existing solutions, but a tighter framework for future developments, with a transition period for funds already in place.
The "Other AIF" category: broader than SCI alone
"Other AIF" is first and foremost a legal category, defined under Article L.214-24 (III) of the French Monetary and Financial Code, covering a wide range of strategies: direct real estate, indirect real estate, real estate debt, infrastructure, unlisted assets, or multi-asset approaches. SCI is simply the most common expression of this category in client portfolios, but the same vigilance applies to any of these strategies if they don't fall under a recognized regulated framework.
What SCIs and other real estate AIFs have brought to contracts
Technically, an SCI held as a unit-linked vehicle invests, directly or indirectly, in a portfolio of real estate assets, with a more flexible accounting and valuation regime than that of an approved SCPI. This flexibility has allowed many vehicles to spread the impact of real estate acquisition costs on unit value over time, rather than passing them on immediately, a model similar to the one used by most institutional European real estate funds. This is what explains subscription fees that are often close to zero for retail investors.
These vehicles have also helped spread the practice of regular valuation, giving insurers and retail investors better visibility into how their investments are evolving, a standard now valued across many contracts.
Liquidity deserves a nuanced treatment
The decree is sometimes presented as a response to liquidity concerns around real estate vehicles. To be precise: the text primarily acts on the investment rules and regulatory framework applicable to these vehicles, not directly on their liquidity mechanisms. Some "Other AIF" vehicles already offer operating arrangements well-suited to insurers' cash-flow management needs; switching to another regulated structure doesn't automatically guarantee better liquidity. Harmonizing regulatory frameworks is an important development, but it shouldn't be confused with a mechanical improvement in funds' operational characteristics.
The compliance timeline
Since May 6, 2026: no new unregulated "Other AIF" vehicle can be referenced in a new contract.
May 2027: every asset management company must have submitted its transformation plan to the AMF, insurers, and PER plan managers.
January 2029: compliance deadline for vehicles already referenced. After this date, a vehicle that hasn't transformed can no longer accept new contributions or incoming switches, though units already held are not seized automatically.
January 2032: a specific exemption applies to funds that have adopted the ELTIF framework as fund-of-funds structures.
The special case of SCIs and SCRs
SCIs and SCRs (venture capital companies) are not banned outright. To remain eligible for referencing, they must adopt investment rules designed for retail funds, either ELTIF or an open-ended fund structure. Failing that, they fall into the residual category of unregulated "other AIFs," with frozen contributions from January 1, 2029.
What about contracts under Luxembourg law?
This decree amends the French Insurance Code and the French Monetary and Financial Code: it does not directly apply to contracts governed by Luxembourg law, which fall under the supervision of the Luxembourg Commissariat aux Assurances (CAA). This is worth checking case by case with the insurer for affected clients, particularly if the underlying vehicle is a RAIF or another unregulated foreign-law AIF.
What this means for your advisory practice
Three simple actions, worth taking well before 2029:
Identify the contracts concerned. Flag any client portfolios exposed to an SCI or another "Other AIF" vehicle.
Contact the asset management company. Ask about the planned compliance trajectory (SCPI, OPCI, ELTIF) and its concrete impact on fees, liquidity, and the vehicle's risk level.
Document and set a follow-up date. If the answer remains vague as May 2027 approaches, note a review date and update the client as soon as things become clearer.
In summary
The April 30, 2026 decree does not mark the end of real estate or unlisted assets in life insurance. It draws a clear line between existing vehicles, which benefit from a transition period through 2029, and future ones, where access for new unregulated vehicles is now closed. For the asset management companies concerned, this clarification also provides greater visibility to continue their long-term investments.
Note for professionals: the exact list of recognized regimes, and the precise treatment of certain categories of professional funds, should be cross-checked against the decree's text before drawing operational conclusions for a given client.
Sources: Decree n°2026-341 of April 30, 2026, Légifrance (French official text)