Mayfair Bridging has been authorised by the FSA to offer syndicated bridging loans as Unregulated Collective Investment Schemes (UCIS).
The new product will target ‘sophisticated investors’ looking to find high returns from different
investment sources.
Shoaib Bux, director of Mayfair Bridging, said: “When we first looked at this funding model it seemed to us a quirk of regulation that a single loan was not regulated but a syndicated loan is classified as an Unregulated Collective Investment Scheme.
“However, when we explained to the FSA what we wanted to do, the investors we would target and the safeguards that are in place they agreed to authorise us to provide this product.”
Although the rules relating to the distribution of UCIS are likely to be tightened up by the FSA in the new year Mayfair Bridging does not believe that this will prevent the right investors from investing in their loans.
Bux said: “A specialist investment such as a syndicated bridging loan is only appropriate for sophisticated investors who understand the product and the risks.
“However, we have prepared our product and supporting documentation to make it easy for the IFAs to assess and classify their clients appropriately and in line with the FSA’s rules on the promotion of UCIS which are widely misunderstood.
“IFAs introducing their clients to us will receive an introductory commission.”