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FSA wins £32m High Court battle against land banks
by Jun Merrett on Mar 21, 2012 at 09:57
Although the regulator does not regulate the sale of land, land banking that amounts to a collective investment requires FSA authorisation, something Maynard, Countrywide and Plateau did not have.
As the business activities were unauthorised, victims are not covered by the Financial Services Compensation Scheme.
Tracy McDermott, acting director of enforcement and financial crime at the FSA said: 'We have to be realistic about the low probability of securing meaningful compensation for victims of these scams, but this is still an important victory. Proving that a land bank is operating a collective investment scheme - and should therefore be FSA authorised - is very complicated, so every success puts us in a stronger position to tackle other schemes.
"This decision sends a message to other land banks that we will not sit by and let them con investors out of their money. Indeed we have also started court actions against others that we believe have been involved in Maynard’s scheme.'
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FCA urged to clarify platform promotion rules
by Michelle Abrego on Jun 19, 2013 at 15:33
6 comments so far. Why not have your say?
Paul Barnard
Mar 21, 2012 at 10:31
Do I need to pay for this too?
report thisRevohtron
Mar 21, 2012 at 10:52
This really isn't the jurisdiction of the FSA - it is fraud, perpetrated by criminals. They didn't fall foul of the regulator, as they had no intention of ever making any genuine returns for the victims, so they didn't join up.
So, yes Paul, you are paying for this, but it should be the Serious Fraud Office doing the digging.
The SFO should simply look on the FSA register, see that it isn't regulated then kick the doors in, rather than have the FSA mess about with this.
report thisBarman
Mar 21, 2012 at 11:52
AS it has been sold to UK residents as a ligitimate investment, of course the FSA should be involved. Agreed there should also be police involvement but a joint approach would be required.
report thisPensionMan
Mar 21, 2012 at 12:04
I do feel for the investors affected but this does highlight how important it is to deal with FSA authorised firms / individuals.
Maybe the FSA should start promoting / advertising this fact a bit more to the general public and we may see less of these schemes as, hopefully, the public would be a bit more aware of the risks.
report thisAnitaki
Mar 21, 2012 at 17:19
Plateau, "now in liquidation....."
Get your chequebooks out!!
report thisRevohtron
Mar 21, 2012 at 17:44
@Barman - ALL frauds are sold as legitimitate investments; that's how they rip people off.
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