How can I invest in property?

Investment in property is regulated according to the form of investment vehicle used, and what kind and level of financial advice is involved.

• Direct property investment is not regulated, per se, to protect the investor, but is bound by the same laws governing the buying and selling of property. Your solicitor can provide you with relevant information regarding the legal aspects and guide you through the process.
• REITs and property companies that are listed on a UK stock market are subject to the Financial Services Authority (FSA)'s Listing Rules for quoted companies. However, they are not subject to direct FSA supervision. Similarly, private property vehicles, limited partnerships, private corporate vehicles and offshore company structures are not FSA regulated property investments and in general, unregulated schemes may not be marketed to retail investors. Investment in property through an FSA regulated product such as pension, OEIC, unit trust or life fund is subject to the FSA conduct of business rules on know your customer and suitability.
• Collective investment schemes are generally governed by the Financial Services and Markets Act 2000 (FSMA), and are regulated by the FSA. This means investors have the protection of the Financial Ombudsman and the Financial Services Compensation Scheme. Where investment in these schemes has been as a result of formal financial advice, then the activities of the financial advisers are regulated.

Collective Investment Schemes typically include limited partnerships and property unit trusts, and are classified as either 'authorised' or 'unauthorised'. Authorised schemes may be marketed to the general public. Unauthorised schemes can only be marketed to limited categories of sophisticated investors, such as companies or 'investment professionals'.