Syndicates and Collectives
With the current fragility of equity markets there is widespread interest in property investment. To achieve appropriate scale and gearing clients look for co-ownership structures which are both tax efficient and compliant. We can advise on groupings which are either free of regulation or which constitute collective investment schemes, and structure them to suit particular circumstances such as the size of the investor group and its degree of active participation in the arrangements. Our experience with property clients in this field is now nationally recognised.
A Point of Reference
In the current complex regulatory environment there are pitfalls in seemingly straightforward commercial transactions which require specialist advice to avoid.
Consultant Philip Mitchell writes:
"We are often asked to help out
other firms when they are putting together equity funding packages. The Financial Promotions
Order which provides gateways for certain classes of investor, is reckoned to be something
of a nightmare for the non-specialist. People tend to know that offers to less than 100 people
do not require a prospectus but are unsure whether an authorised intermediary will be required.
Not infrequently I take panic calls from other lawyers or accountants about whether
the "high net worth" or "sophisticated" investor exemptions apply, and the mechanics of the
certification regime. Sometimes one is able to point them towards another available exemption,
but in each case the problem has got to be carefully examined, usually against a deadline.
This is challenging work but often results in good relationships being built."
The Overseas Dimension
With significant inward investment continuing into the UK, we accept instructions from overseas businesses and their advisers in connection with the establishment of investment operations here. These include advising on regulatory and licensing requirements including "passporting" issues, and the employment and immigration procedures which need to be followed. We advise on the requirements for marketing investments in the UK and handle work, particularly from the US, in connection with the authorisation of brokers establishing a regulated place of business here. We can guide such applicants through all the stages of the authorisation process and negotiate on their behalf with the Financial Services Authority. Similarly, we have handled mergers and closures where overseas firms with UK branches have found recent market conditions uncomfortable.
We assist with the establishment of compliance procedures and customer documentation and provide advice on cross-border issues, where necessary using the resources of our international association, the Alliance of Business Lawyers.