AIPP chief writes to UK business secretary
Mark Sharp, CEO of the Association of International Property Professionals (AIPP), is seeking clarification from the UK government over where international property fits into regulation surrounding collective investments.
In a letter to Business Secretary Vince Cable, Sharp asks for clarification on a number or issues and requests a “full and frank dialogue” with the government and the Financial Services Authority (FSA) on which type of property investments constitute a collective investment.
Currently, any investments where income is “pooled” can be classified as collective investments and therefore can only be sold by FSA regulated bodies, effectively banning their sale by overseas property agents.
However, the definition of a pooled investment is not clearly defined in the case of property investment and “there is a lack of knowledge within the FSA about issues relating to the overseas property industry”, according to Sharp.
“Does a property based in Spain bought a by local and Chinese buyers suddenly become a collective investment once a British buyer purchases?
Does the fact that a property is new build make a difference? There are a whole number of issues that need clarification”.