Friday, June 10, 2011

Land banking in the UK


.....The Financial Services Authority (UK) 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........

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2 comments:

yeohlc said...

There are some differences between the definition of a collective investment scheme (CIS) under S235 of the UK's Financial Services and Markets Act and under S2 of the Securities and Futures Act (Cap. 289) in Singapore.

One material difference is that under S235(3) of FSMA, to be a CIS, an arrangement must have either or both of the following characteristics.

- the contributions of the participants and the profits or income out of which payments are to be made to them are pooled; and

- the property in question is managed as a whole by or on behalf of the operator of the scheme.

The SFA, on the other hand, requires both these characteristics.

That being said, some landbanking schemes operated by the large purveyors of these schemes in Singapore do display these characteristics, and and therefore CIS.

Query if the MAS has to date completely recognized this. It can do more in this regard.

June 11, 2011 11:35 PM
Tan Kin Lian said...

Dear yeohc
Can you write a complete article for me to post in my blog? This article should argue the case for action to be taken by MAS (if it is appropriate). Send to kinlian@gmail.com

June 12, 2011 7:03 AM

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