We work particularly closely with the property sector, where financial services regulation is having an increasing impact. Although real property as such is not an investment within the scope of the FSMA, property companies and advisers are increasingly involved with funds and similar vehicles which are subject to financial services regulation, even if the underlying property itself is not. We advise a number of the major firms – and smaller ones too – on the regulatory issues and compliance for their investment or fund management activities.
The issues include questions of corporate structure – whether one or more new vehicles should be established to service such activities, and how activities can be structured in order to meet regulatory capital requirements in the most efficient and cost-effective way. We have helped with applications for authorisation of new entities, and the regulatory consequences of changing status from partnership to LLP. We have prepared procedures and other working documentation, and developed tailored training programmes, delivered both face-to-face and through e-learning platforms.
In 2006 we undertook a qualitative study for the Investment Property Forum (IPF) to research the likely future impact of regulation in the property sector, and the possible development of a bespoke examination syllabus leading to a recognised qualification in property investment which could be approved for training and competence purposes.
The introduction of the regulation of general insurance mediation posed some particular difficulties for the property sector. As well as helping many property firms with applications for authorisation and the development of appropriate internal procedures, we worked closely with RICS, the Royal Institution of Chartered Surveyors, in the months prior to January 2005, to help resolve with the FSA some areas of potential difficulty with the rules on client money. Since then we have continued to assist RICS with aspects of their own Designated Professional Body scheme. This went live in February 2006 and provides an alternative means for RICS members – subject to certain conditions – to be regulated for insurance mediation activities without needing to be authorised by the FSA.
The options for regulation in the property area are not always straightforward. With our extensive experience in this area, we are particularly well placed to advise property firms both on whether their activities require authorisation and if so on the options available.