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Fsa Clamps Down On Land Investment

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http://citywire.co.uk/new-model-adviser/fsa-clamps-down-on-land-investment/a485344

The Financial Services Authority (FSA) has secured an order freezing the accounts of Plateau Development and Land after accusing it of operating an unauthorised collective investment scheme.

The FSA secured the order against land acquisition firm Plateau and sole director Wasim Minhas in the High Court. The regulator declined to comment on the case but said it had five active investigations into land banking schemes which had attracted £42 million from investors.

Land banks encourage investors to buy bundles of property with the expectation of values rising once the schemes operators have secured planning permission for development.

Plateau and Minhas have been blocked from selling or trading in land by an order issued by Mr Justice Floyd sitting in the Chancery Division of the High Court.

They were ordered to hand over the names and contact details of ‘brokers’ and agents used to market or sell land in the United Kingdom. The London Bridge-based firm holds the freehold to land near Cranbrook, according to court documents.

Paper tiger learning to bite?

Q

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"The regulator said it was also conducting inquiries into another 20 suspected unauthorised property-based collective investment schemes. "

Perhaps the wrong people got the land?

What is the difference between these "property based collective investment schemes" and the Real Estate Investment Trusts that Osborne is giving huge tax advantages to?

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What is the difference between these "property based collective investment schemes" and the Real Estate Investment Trusts that Osborne is giving huge tax advantages to?

The "property based collective investment schemes" are an outright scam. Nothing to do with REITs. Try googling.

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"The regulator said it was also conducting inquiries into another 20 suspected unauthorised property-based collective investment schemes. "

Perhaps the wrong people got the land?

What is the difference between these "property based collective investment schemes" and the Real Estate Investment Trusts that Osborne is giving huge tax advantages to?

These landbanking schemes sell very small plots of greenbelt land at vastly more than their market value (eg 100x more than what it is worth). They claim you will make money when they get planning permission, however there is absolutely no chance of that happening.

REITs are companies like Segro or British Land that own commercial property that they rent out to businesses. You can argue about the valuations. They are probably about 30% to 50% overvalued, but the buildings do sell today for the values quoted, and there is a rental income yield.

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And how long have these scams been running before the FSA showed interest? I think I hear the sound of stable doors banging.

Edited by Sir John Steed

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I actually think the ban on "collective investment schemes" is a bit stupid.

If all risks are properly disclosed then it is a free world and people should be allowed to make mistakes.

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I actually think the ban on "collective investment schemes" is a bit stupid.

If all risks are properly disclosed then it is a free world and people should be allowed to make mistakes.

Isnt really a 'free' world.

Its a crazy world full of headline hungry politicians ready to kowtow to "good guy" media following the case of poor Mrs Muggins who speculated all her savings in some field in the middle of nowhere to make a bob or two and now wants her 'uman rights of a bailout courtesy of Mr and Mrs future taxpayer.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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