Investment fears

‘The British property industry has warned that moves to clampdown on the sale of exotic investments could restrict small-time investors from buying real estate stocks.

The warning comes after the FSA announced a consultation on how to police schemes targeted at ordinary retail customers following a string of mis-selling scandals.

However, under the current terms of the FSA’s consultation document, real estate investment trusts (Reits) could be affected.

A spokesman for the FSA commented: “Some Reits may be included depending on their legal structure and if they are set up as a special purpose vehicle which is designed for investment purposes.

But this is a consultation and this is not a foregone conclusion”. In response, the British Property Federation said that Reits did not qualify as “exotic” or speculative investment.’

Source: The Times

Myfanwy Neville

Partner: Property and Construction, Sustainability and ESG

T +44 (0)20 8922 9376
E Myfanwy.Neville@bkl.co.uk

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