The Financial Services Authority’s high court action against land investment firm Cavendish Moore – part of the FSA’s clampdown on so-called “landbanking” – is set to be heard in November.
The trial of the action, in which the FSA will allege that Cavendish Moore has carried out “collective investment schemes” without authorisation, is scheduled to be heard over 10 days, beginning on 12 November.
The FSA claims that Cavendish Moore and sister company Cicada Investments Ltd have, in the course of establishing, promoting or operating a number of limited liability partnerships (LLPs), carried on regulated activities without its authorisation.
It also claims that they have induced others to invest without authorisation, and have breached the Financial Services and Markets Act 2000.
The FSA seeks an injunction preventing Cavendish Moore and the other defendants from carrying out any further breaches of the Act, as well as an account of profits in order to determine damages.
Cavendish Moore and Cicada, whose business plan involves buying land that has already won planning permission but where no building work has been carried out, deny any breach of the collective investment scheme rules and are defending the action.
The Financial Services Authority v Cavendish Moore Ltd and ors
