Investors from across the world have been lured by developers and sales agents into buying various types of property in these schemes. Promised ‘guaranteed’ returns, buy-back options and attractive yields, many are now facing the realisation of losing significant sums of money.
Why? These schemes are not only unregulated but unlawful from the outset – many will argue they are nothing more than scams or Ponzi Schemes. Ever heard of the expression, ‘robbing Peter to pay Paul’?
Have you invested in a scheme like this?
Hundreds-of-thousands of investors have lost money in developments marketed and sold as hotel rooms, care homes, buy-to-let apartments, student accommodation and even parking spaces.
These schemes often promise rental guarantees, high returns, or buy-back options, but many are unregulated and high risk. The truth is that investors’ money is often pooled to fund developments or pay early returns. When the schemes collapse, investors are left out of pocket.
What is the Criteria for a UCIS?
According to Financial Services and Markets Act 2000 (FSMA) section 235
- No Day-to-Day control of the property / management of it.
- Pooled Income: The contributions of the participants, and the profits or income from which payments are made, are pooled together.
- Collective Management: The property is managed as a whole by, or on behalf of, the operator of the scheme
IMPORTANT: These types of pooled investments (CIS) are regulated activities and must be set up and run by authorised or exempt persons (s19 of FSMA).
To check if a company or person you have invested with is regulated by the Financial Conduct Authority (FCA), consult their Firm Checker function here.
The UK-wide Problem
As a result of comprehensive research, we are now aware of over 750 individual property developments identified and classified as UCIS schemes across the UK.
Statistic: In Liverpool 46% of the TOTAL PBSA market & 64% of non-University owned PBSA’s are unlawful Unregulated Collective Schemes (UCIS). Considering that there are over 16,000 student rooms in Liverpool – these are substantial numbers.
(data presented according to our internal database figures)
The Importance of the Solicitor…
Solicitors play an essential role in protecting investors from high risk or unlawful schemes. They are expected to spot when an investment is unsafe and provide clear warnings to their clients. The Solicitors Regulation Authority (SRA) has repeatedly cautioned solicitors about the risks associated with property and UCIS investments.
Where a solicitor fails to recognise these risks, warn their client, or act in their best interests, they may be negligent. Where a solicitor is negligent, there is potential for a professional negligence claim against the solicitor who acted.
How can we help?
We have helped guide thousands of investors through the process of identifying their investment as a UCIS, analysing and collating documents with a detailed report and referring their case to Top UK Law firms for a group action. We work with a panel of Top UK Law Firms, all of whom understand UCIS and are best placed to action a claim. Our structured process allows us to formulate the best possible chance for investors to recover their losses in unlawful UCIS schemes. For any more information on our process or anything else, check out FAQ section.
To start the process and join other investors in getting their money back, complete this form.