Landbanking: the plots thicken

Asset Worldwide, which operates from a central London address and has a UK-registered PLC run from an Essex address, says on its website that "it is not regulated by the FSA" and "does not give investment advice".

It continues: "Neither Asset Land Investments nor any person connected with it will have any role in pursuing re-zoning or planning permission." It gives no guarantee of future values.

So how can it promote an apparent collective investment scheme but not be authorised by the FSA? Callers to Asset Worldwide are told that planning applications and future sale will not be handled by them, but could be carried out by Greenwood Bell, a firm in Welwyn Garden City.

But when Guardian Money contacted Paul Brettell, who set up Greenwood Bell in 2004, he said: "My role is simply to make assessments on the land. It [Asset Worldwide's website] quite clearly states that the land they sell does not form part of a collective investment scheme."

Contacting Asset Worldwide was more difficult. It failed to return our calls, but eventually replied to an email request for an interview, saying: "It is holiday week in Panama and all directors are away for celebration."

The FSA says that if "individual investors do not have day-to-day control over the planning or disposal process, the arrangements are likely to amount to a collective investment scheme." This would require authorisation.

It warns that if a landbanking scheme is unauthorised, you will not be able to use the Financial Ombudsman Service or the Financial Services Compensation Scheme if things go wrong. But if you have agreed to take part in a landbanking collective investment scheme run by an unauthorised person, you may have a right to recover your money because agreements which an unauthorised person enters into while operating, advising on or arranging a collective investment scheme cannot necessarily be enforced.

*Organic farming charity Land Heritage has asked us to point out that it has no connection to Land Heritage (UK).

How Guardian Money has tracked the rise and fall of landbanking

June 2004 Guardian Money is first newspaper to investigate landbanking, focusing on sales around Milton Keynes.

October 2005 We reveal that more than 10 companies are promoting landbanking schemes at the London Property Show.

March 2006 Officials from the department of trade and industry swoop on United Land landbanking stand at Ideal Home Show.

January 2007 FSA issues warning on landbanking

January 2007 FSA shuts Rubicon Estates, a landbanking firm which sold plots around Cambridge and Maidstone

October 2007 Investors discover losses of £5m from United Land

June 2008 FSA asks High Court to wind up biggest landbanking firm, UK Land Investments. 4,500 investors are left with near-worthless parcels of farm land.

August 2008 We reveal how UKLI founder has set up in Dubai, selling plots of land in Kent

August 2008 Land International wound up after investigation by the Insolvency Service.