Tweet
Land banking: your rights
Originally posted by 5corpio
The FSA is aware of several companies operating and marketing what are known as 'Landbanking' schemes in the UK.
Companies operating these schemes are seeking investors to buy plots of land in areas which have not yet been granted planning permission, and may be in 'Greenfield' or 'Greenbelt' zones.
The operators of these schemes offer to handle the planning permission application process for the plot-owners. They claim that once owners are granted planning permission they can sell the whole site to a developer for a substantial profit.
The risk
Although the FSA does not regulate land as a 'specified investment,' there is a risk that many of these schemes are in breach of the financial regulation regime if they are structured as a 'collective investment scheme'.
To operate and promote such a scheme legally the operators of the scheme would need to request and obtain authorisation from the FSA which would then regulate these firms. Generally these Landbanking schemes are not authorised by the FSA.
Your rights
Unauthorised operators of collective investment schemes are not covered by the Financial Services Compensation Scheme (FSCS). However, if you have entered an agreement to participate in a Landbanking collective investment scheme which is run b.......Click HERE to read more
Companies operating these schemes are seeking investors to buy plots of land in areas which have not yet been granted planning permission, and may be in 'Greenfield' or 'Greenbelt' zones.
The operators of these schemes offer to handle the planning permission application process for the plot-owners. They claim that once owners are granted planning permission they can sell the whole site to a developer for a substantial profit.
The risk
Although the FSA does not regulate land as a 'specified investment,' there is a risk that many of these schemes are in breach of the financial regulation regime if they are structured as a 'collective investment scheme'.
To operate and promote such a scheme legally the operators of the scheme would need to request and obtain authorisation from the FSA which would then regulate these firms. Generally these Landbanking schemes are not authorised by the FSA.
Your rights
Unauthorised operators of collective investment schemes are not covered by the Financial Services Compensation Scheme (FSCS). However, if you have entered an agreement to participate in a Landbanking collective investment scheme which is run b.......Click HERE to read more
• Consumers invested £3.9m in landbanking firm
A landbanking firm has been issued with a winding up order by the high court after the Financial Services Authority (FSA) found it had been marketing plots of land as an investment opportunity and operating an unauthorised collective investment scheme.
Between May 2009 and April 2011, Plott UK Limited collected about £3.9m from UK consumers, promising investors returns of between 200% and 300%. But at least one of the plots was located in a designated area of outstanding natural beauty and was highly unlikely to ever receive planning permission.
The FSA does not regulate land as an investment, but it does regulate the operation of collective investment schemes (CISs), which is how it is able to pursue landbanking firms.
Following the FSA's intervention, the high court made a winding up order against Plott and approved the appointment of a liquidator who will now identify, realise, and distribute the company's assets to its creditors.
Plott customers invested a minimum of £10,000, but the FSA said it is aware of many consumers who invested tens and even hundreds of thousands of pounds with the company. Until the liquidator has completed its investigation the FSA said it is unable to confirm whether any funds will be available to give back to Plott's victims.
Click HERE to read more
The sites marketed were at:
1. Chilton Trinity near Bridgewater, Somerset;
2. Beacon Lane, Lincolnshire;
3. Hatton, Warwickshire;
4. Towcester, Northamptonshire;
5. Woodmancote, Cheltenham; and
6. West Cheshunt, Greater London.
Dentam Frost Ltd (Suspended website | This website has been suspended) marketed plots at the West Cheshunt site only.
Berkeley Warbeck Limited (http://www.berkeleywarbeck.co.uk), trading as Berkeley Land (http://www.berkeleyland.co.uk), claimed to be industry leaders in sourcing developed and undeveloped land for investment. In reality, there was no likelihood of planning permission being granted to add value to the plots of land which were located in the greenbelt and/or subject to restrictions on development....Read more here