The FSA is being called upon by property investment companies to stop consumers being taken advantage of by rogue operators.

This happened as a result of an investigation by the Office of Fair Trading (OFT) into two property companies who were complained of when clients lost thousands of pounds.

Stuart Law, managing director of property investment company Assetz said, Consumers need protecting from rogue property investment organisations that charge exorbitant fees and offer vast, but imaginary, rewards for minimal initial investment.

Sensible regulation of property investment by the FSA, such as risk warning on documentation, proper valuations and standardising of examples showing potential returns, would be a positive thing.

The two companies under investigation by the OFT were named as Instant Access Properties and Inside Track Seminars, both of which are based in Surrey.

Julia Smith, spokesperson for the OFT said, We have received complaints from a number of consumers that we are considering, but you should not assume that this will lead to enforcement action.

The companies concerned were advertising in regional and national newspapers offering two day seminars that cost delegates £2500.

Mr Law said, If over regulation were applied, it may limit the ability of property investment organisations to explain the maths behind investments with gearing. The pension’s black hole can be partly filled by property investment if it is allowed to continue in a structured way.

He concluded by saying that consumers must know of the benefits that property investment can bring. Property investment can be very lucrative in the long term and companies being closed down on a regular basis may dissuade people from investing through this asset class.