View more on these topics

Budget 2011: New rules boost Reits

The Government is to consult on reforming legislation around real estate investment trusts to boost investment in UK property.

The coalition plans to reduce barriers to entering the sector as well as the “regulatory burden” for Reits now and in the future.

The proposed legislation will be included in the Government’s Finance Bill for 2012.

Among the proposals that are up for discussion include the introduction of new rules for institutions who co-own Reits and abolishing the 2 per cent conversion charge for companies who convert into the format.

Under the proposals, Reits would also be allowed to hold cash, making them more flexible at times when holding only real estate is unattractive.

The time limit for paying out profits would be extended to six months. Reits’ financing rules and stock exchange listing requirements would also be relaxed.

In addition, they could be allowed a grace period to meet the rules’ “non close company requirement”å.

Recommended

1

Northern Rock returns to securitisation market

State-backed bank Northern Rock plc is planning to enter the securitisation markets for the first time since receiving a Government bailout. The bond issue will be from the “good” bank, Northern Rock plc. The lender was split in two in January 2010. The lender says it is looking to securitise around 2 per cent of […]

11

Johnson hits back as Hutton claims funded pensions are ‘ideological’

Centre for Policy Studies research fellow Michael Johnson has hit back after Lord John Hutton suggested his calls for public sector pension schemes to be fully funded are “ideological”. Last week, the Independent Public Service Pensions Commission, chaired by Hutton, recommended public sector pensions switch from final-salary to career-average provision. Hutton resisted Johnson’s suggestion that […]

Stallworthy departure spurs LEBC restructure

LEBC has restructured the business into four divisions, as managing director Nigel Stallworthy retires after 10 years at the helm of the national IFA. Stallworthy, a founding director, led the firm alongside chief executive Jack McVitie and will not be replaced. LEBC, an appointed representative of Sesame, will be split into four divisions – savings, […]

3

L&G ends exclusive deal with Cofunds

Legal & General has ditched its exclusivity deal with Cofunds, which could pave the way for a launch of its own IFA platform. L&G, which holds a 25 per cent stake in the fund platform, has maintained an exclusive distribution arrangement with Cofunds for its bond and pension wrappers since 2005. But L&G executive director […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment