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Micro-Investment
aamadami
Posts: 56 Forumite
We represent a collective of small-scale investors who have recently established a limited company. Our group consists of 20 individuals, each contributing micro-investments of £5,000. We are currently exploring property acquisition opportunities, specifically targeting properties similar to the one listed in the following example:
https://www.rightmove.co.uk/properties/139088141
We have consulted with solicitors regarding our investment approach, and they have indicated that this activity could likely be considered as regulated by the Financial Conduct Authority (FCA). Given this perspective, we are exploring alternative options.
At one point, we contemplated purchasing property outside the UK and converting it into an Airbnb rental. Would this approach present fewer regulatory challenges, or are there other viable avenues we should consider?
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Comments
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You should seek professional advice in whichever jurisdiction you wish to invest in.4
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Have you inadvertently set up a collective investment scheme in the uk? I’m not sure that that is ameliorated by investing the funds overseas?No reliance should be placed on the above! Absolutely none, do you hear?2
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we have only thought about this and nothing else. on initial stage solicitor said it is regulated by FCA so we did not progress further.0
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you could explore setting up a micro SPV via someone like Carta's Vauban, who are regulated by FCA but provide SPV services, pool the capital in the SPV and have it buy the property. However, 100k is not a big sum to run these structures efficiently, and you might find a problem finding a solicitor who might all dislike potential AML issues arisign from a structure with 20 beneficiaries ...3
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