View more on these topics

Paying dividends

JO Hambro fund manager Chris Beagles is a leading light in the equity income area and he puts the focus firmly on yield, believing that dividends are a true reflection of a company’s worth

The FSA has warned financial advisers to check the status of land banking companies before putting their clients into such schemes.

The regulator says it is concerned over whether land banking schemes are collective investments and therefore subject to regulation.

Schemes that are deemed to be collective, but where there is no regulation, would be operating illegally.

It is estimated that at present there are around 50 companies which are opera- ting schemes whereby land is bought up and then sold off to investors in small parcels in the expectation that when planning per- mission is granted the value of the land will increase.

Some financial advisers have been tempted to put clients into land banking after being told that, with planning permission, the value of the land could go up massively.

But with the current suspension of trading by Land Heritage (UK), the FSA now wants it to be clear which companies are offering collective investments and which are not.

For land banking com- panies that are deemed to be offering a collective investment, the FSA is now looking at altering the detail of the regulation so that the investors are given more say over the specifics of the investment.

Speaking to Money Marketing a spokeswoman for the FSA said that financial advisers thinking of putting clients into land banking should be careful of going into unregulated schemes.

The spokeswoman said: ” If the company is in fact operating a collective investment then it must be regulated and if it is not then it is operating illegally.”

It is estimated that as many as 500 investors have paid up to 15,000 each for a small slice of a site of the Land Heritage (UK) site near Uckfield in Sussex.

But the local authority has indicated there is no possibility of granting planning permission in the near future and the investment does not look as sound as it did.

It is unclear what will happen to the money that the investors have put in.

Recommended

Reorganised chaos

I have been reading some stuff about Mifid. How depressing. I am reminded of an old quote: “We trained very hard but it seemed that every time we were beginning to form up into teams, we would be reorganised. I was to learn later in life that we tend to meet any new situation by […]

Jacobs threat to name firms for A-Day failures

Specialist pensions IFA Richards Jacobs has threatened to name and shame two leading product providers unless they radically improve their post-A-Day offerings. Jacobs, director of Richard Jacobs Pension & Trustee Services, says the providers, one of which is a top five insurer, are both failing to offer customers the full range of opportunities presented by […]

Twice as nice

For those of you who remember the lord of the black dogs and former MM investment hack, you might be interested to know that Matt Davis is now officially married. Again. Having parted our shores for the rolling hills of Portland, Oregon and the lovely Sue, and having had the civil ceremony earlier this year, […]

The Great British Break-Off

Despite predictions that a vote to leave the European Union would result in an economic apocalypse, UK equities have shown the market equivalent of a stiff upper lip: bouncing back, keeping calm, and carrying on. Although the road towards Brexit remains clouded in uncertainty, UK equities offer a range of opportunities to investors seeking returns […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com