Asset Land Investment v The Financial Conduct Authority
Asset Land Investment plc (“Asset Land”) and its principal owner and director Mr Banner-Eve appealed against findings that they had carried on a of regulated activities without authorisation, namely the operation of collective investment schemes, contrary to section 19 of the Financial Services and Markets Act 2000 (“FSMA”). The activities related to sales of individual plots at six possible development sites in various parts of the United Kingdom. Asset Land divided the sites into plots which it sold to investors, representing that it would be responsible for seeking rezoning for residential development and for arranging a sale to a developer. Having (for the first time in the Supreme Court) considered the proper scope of the collective investment scheme concept, the Supreme Court unanimously dismissed the appeal by Asset Land and Mr Banner-Eve, finding that Asset Land’s activities amounted to operating “collective investment schemes” under section 235 FSMA, and were thus “regulated activities” for the purpose of section 19."