AREF/IPF Inducements Working Group
This working group, jointly established with Investment Property Forum, has been formed to address increasing concerns from the industry that the over-zealous application of the rules applicable to the regulated industry is a disadvantage to the real estate businesses.
Regulatory policy across the industry is seen as significantly incoherent and there are concerns that the industry is applying to the real estate market restrictions more applicable to other areas of the regulated financial services industry. Currently those outside the regulated industry find it difficult to understand the requests to monetise drinks, lunches or invitations to events, which can cause embarrassment, whilst those within it feel on the back foot compared with unregulated participants.
This is particularly important in the investment transaction arena where it is felt that there is now an unlevel playing field, between those who operate as regulated businesses and those who do not, in sourcing investment opportunities and price discovery, to the ultimate disadvantage of fund investors.
The objective of this group is therefore to help educate those outside the industry as to how the real estate industry works and to consider what are sensibly balanced policies for real estate practitioners.