Property investment clubs must be better regulated

11.22.43am UTC (GMT +0000) Fri 9th Dec 2005

Vince Cable MP, Liberal Democrat Shadow Chancellor, today called for Property Investment Clubs to be brought under the regulation of the Financial Services Authority to protect consumers.

Commenting, Mr Cable, who recently received a targeted mailing himself from property investment club, Inside Track, inviting him to resign his job and invest in property to make him a millionaire, said:

"I have been seeking support from the Treasury and the Financial Services Authority to bring these clubs within the existing systems of financial regulation.

"Inside Track only acknowledge in very small print that they are unregulated by the Financial Services Authority and therefore there is no redress for consumers if something goes wrong.

"Some property investment clubs are perfectly reputable but too many seem to want to hide their identities, gloss over hidden fees, and avoid any mention of the big risks involved in property investment."