The meaning of “collective investment schemes” is being considered by the Supreme Court, in a case involving land across England.
In 2013, Asset Land Investment and director David Banner-Eve were ordered to pay more than £11m after the High Court ruled that they had operated so-called land banking schemes in breach of financial services legislation, and that decision was upheld by the Court of Appeal in 2014.
Now they are hoping to overturn that decision at the Supreme Court.
Lord Mance, Lord Clarke, Lord Sumption, Lord Carnwath and Lord Hodge will ultimately rule on the meaning of “collective investment scheme” in section 235 of the Financial Services and Markets Act 2000.
In 2013, Andrew Smith J backed claims by the Financial Conduct Authority (formerly the Financial Services Authority) that schemes involving land in Surrey, Hampshire, Berkshire, Essex, North Yorkshire and Leicestershire breached a prohibition on land banking schemes without authorisation.
The judge granted a declaration that the six schemes contravened the 2000 Act and ordered interim payments of £11.27m.
But Asset Land and Banner-Eve deny that they were collective investment schemes, and that the judge gave section 235 too wide an interpretation.
Asset Land Investment Plc and another v The Financial Conduct Authority Supreme Court (Lord Mance, Lord Clarke, Lord Sumption, Lord Carnwath and Lord Hodge) 13 January 2016
