The chief City regulator has forced another landbanking company to shut its doors, leaving hundreds of investors with land worth a fraction of the price they paid.

Guildford-based Rubicon Estates, which bought fields at farmland prices and then sold small plots to investors at higher prices in the expectation of valuable planning permission being granted within "five to 20 years", has ceased trading following a Financial Services Authority enquiry. Its office is now empty and its website, which once promised a route to riches, has been taken down. The company is now in discussions with liquidators.

(Via Guardian Unlimited. To read the full story, click here)

The Financial Services Authority has published information on your rights to recover money or claim compensation from land bankers operating unauthorised collective investment schemes.

Your rights

Unauthorised collective investment schemes are not covered by the Financial Services Compensation Scheme (FSCS). However, if you have entered an agreement to participate in a Landbanking scheme which is an unauthorised collective investment scheme, you may have a statutory right to recover your money and compensation for any consequent losses. This is because agreements which an unauthorised person enters into while operating, advising on or arranging for persons to participate in a collective investment scheme cannot necessarily be enforced. You should contact the operator of any such scheme and/or a legal adviser to find out about your rights.

There is also a UK hotline number for you to call to report any land banking scheme which you believe may be an unauthorised collective investment - 0845 606 1234.

If calling from outside the UK, call +44 20 7066 1000 (FSA main switchboard).

---

Link: FSA information on land banking
See also: Money Made Clear - Landbanking - Impartial information from the FSA

---