Property investment schemes don’t worry FSA…yet

Investment in property funds by retail customers is not a major concern currently says the FSA, after it found that product literature is “reasonably clear” and that independent financial advisers have “quite a good understanding” of the schemes, the property market and associated risks. It noted that the riskier products were mainly sold to a small number of wealthy clients by specialist IFAs. The regulator notes however that its research did not look at direct investment such as owner-occupied or buy-to-let activity. The FSA says also that it expects a rising number of private property funds to be launched in the retail market with concomitant potential for mis-selling. It will issue new information on property schemes for consumers via its website and support IFA education in the field.