‘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