Tweet
(2) Asset Land Investment plc and another (Appellants) v The Financial Conduct Author
Land Banking ....
Judgment hand-down: Court 1 | Wednesday 20 April 2016 | 09:45
(2) Asset Land Investment plc and another (Appellants) v The Financial Conduct Authority (Respondent)
More...
The first appellant is a public limited company. The second appellant is a director of the first appellant. Between 2006 and 2008 the first appellant, and another company ALI-Panama, purchased areas of farmland with the aim of carving them up into plots and selling them to individual investors. The judge found that the structure of the scheme was that:
(i) the first appellant would seek to progress planning procedures so that the sites could be used for housing;
(ii) the first appellant would procure their sale to developers; and
(iii) the investors who sold the plots would be paid a share of the total consideration paid by the purchaser. Investors would only receive the contract for the purchase of land after they had paid the full purchase price.
The contract included clauses that:
the first appellant had made no representations which the investors were relying on in entering the contract other than those set out;
and,
the first appellant would not apply for planning permission or any other act within the 2000 Act unless authorised.
Investors filled out a separate form confirming that they read and understood the disclaimers.
Once these documents had been received, title to the plot would be registered at the Land Registry in the name of the investor. Following complaints, the FCA appointed investigators.
On 14 June 2012, the FCA brought proceedings against, amongst others, the appellants for operating "collective investment schemes" (s.235 of the 2000 Act) in contravention of the 2000 Act. The Divisional Court upheld the FCA's complaints and the Court of Appeal dismissed the appellants' appeal.
Judgment appealed
[2014] EWCA Civ 435
Judgment hand-down: Court 1 | Wednesday 20 April 2016 | 09:45
(2) Asset Land Investment plc and another (Appellants) v The Financial Conduct Authority (Respondent)
More...
The first appellant is a public limited company. The second appellant is a director of the first appellant. Between 2006 and 2008 the first appellant, and another company ALI-Panama, purchased areas of farmland with the aim of carving them up into plots and selling them to individual investors. The judge found that the structure of the scheme was that:
(i) the first appellant would seek to progress planning procedures so that the sites could be used for housing;
(ii) the first appellant would procure their sale to developers; and
(iii) the investors who sold the plots would be paid a share of the total consideration paid by the purchaser. Investors would only receive the contract for the purchase of land after they had paid the full purchase price.
The contract included clauses that:
the first appellant had made no representations which the investors were relying on in entering the contract other than those set out;
and,
the first appellant would not apply for planning permission or any other act within the 2000 Act unless authorised.
Investors filled out a separate form confirming that they read and understood the disclaimers.
Once these documents had been received, title to the plot would be registered at the Land Registry in the name of the investor. Following complaints, the FCA appointed investigators.
On 14 June 2012, the FCA brought proceedings against, amongst others, the appellants for operating "collective investment schemes" (s.235 of the 2000 Act) in contravention of the 2000 Act. The Divisional Court upheld the FCA's complaints and the Court of Appeal dismissed the appellants' appeal.
Judgment appealed
[2014] EWCA Civ 435
