Opinion

Land banking involves the purchase of land with a view to selling it on at a later date for profit, often as a result of planning permission being obtained. The Financial Services Authority (FSA) does not regulate the sale of land but land banking may amount to a collective investment, something tha...

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Bibliographic Details
Published inMortgage Strategy p. 24
Main Author Gilchrist, Stephen
Format Trade Publication Article
LanguageEnglish
Published London Centaur Media USA Inc. (A member of Centaur Plc Group) 12.12.2011
Subjects
Financial services
Investments
Limited liability companies
Mortgages
Profits
Regulation of financial institutions
Regulatory agencies
Securities fraud
United Kingdom > UK
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Summary:Land banking involves the purchase of land with a view to selling it on at a later date for profit, often as a result of planning permission being obtained. The Financial Services Authority (FSA) does not regulate the sale of land but land banking may amount to a collective investment, something that does require FSA authorisation. The FSA is determined to close down operations which involve the sale of products which are not otherwise specified investments, which broadly speaking include financial products, but which are being sold in a way which contravenes the FSMA. The moral for entrepreneurial businesses is to ensure that whatever product they may be selling to the retail market, the product is not sold via any mechanism which could be construed as a collective investment scheme and thus attract the attention of one of the UK's fiercest regulators.
ISSN:1475-651X