Legislation changes force Property Investment Market suspension

22 November 2007
According to chief executive of The Property Investment Market (TPIM), Stephen Kenny, the exchange has had to suspend activity following new changes to legislation. TPIM is the only residential property stock market in the UK. New European financial regulations introduced on November 1 have altered the way the market currently operates.

"We are now required to operate as a Multilateral Trading Facility (MTF) and require FSA authorisation to undertake MTF activity," said Mr Kenny.

He added: "We are now required to operate as a Multilateral Trading Facility (MTF) and require FSA authorisation to undertake MTF activity. We have applied for FSA authorisation and are working as quickly as we can to meet their requirements."

Private investors will not have access to money until trading recommences. This may affect as many as 750 investors, who have invested almost £900,000 in stocks. With a minimum investment of £1, many in the UK have used the exchange to reap the benefits of the buy-to-let growth since 2005.

Shareholders can invest in properties when they are sourced and listed on the exchange, which also allows them to view the property details, research the area and analyse the performance of comparable properties. Listings provide detailed information on the property supported by an independent survey, valuation and searches and management reports. Shares can then be traded in a similar way to equities and are influenced by changes in house prices.

TPIM will be suspended until it meets the MTF criteria, including legal status, resources, ownership and structure. "In the meantime, we will ensure all market users are updated on the position of the exchange as soon as further information is available," said Mr Kenny.

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