What do advisers need to know about Reits?

The information advisers need to know about Reits falls into two categories: first the facts needed in order to meet their regulatory obligations and second the crucial product and tax-related rules to conduct business effectively

Importantly, the first category is mandatory while the second is dependent on the sort of business an adviser wishes to develop. To start with, there are two basic facts that always help underpin any discussion about Reits: l A Real Estate Investment Trust (Reit) is not actually an investment trust but a property investment company, listed on a recognised exchange such as the main market of the London Stock Exchange. l When investing directly in a Reit, the client/private investor is buying a share in a quoted company with a specific tax status The key facts that advisers need to know to...