The UK financial regulator, the Financial Services Authority, has issued clarification for advisors who want to advise clients on REITs and investments in collective investment schemes which hold REITs. The move follows pressure from industry groups such as the Association of Independent Financial Advisors and research from trade association REITA that showed 34 per cent of IFAs were unsure if they could legally advise on the new type of property investment. According to the FSA, firms will not need to change their FSA permission in order to give advice on REITs as REITs are not FSA-authorised firms. “A share in a REIT is a share in a listed company, which is an "investment" in the context of the FSA handbook”. In relation to retail investors, the guidance says: “As with other new offerings that reach the retail investment market, we expect advisors to have undertaken appropriate training before offering advice on REITs.” A REITA spokesman said: “We fully support the FSA’s emphasis on the need for advisors to understand REITs and how they compare with other property investment vehicles; this is at the heart of REITA’s mission and we are particularly pleased to be listed as the FSA’s recommended source for advisors looking for information on REITs.” The UK tax authority, HM Revenue and Customs, has also issued detailed guidance for REITs to guide companies and investors who may wish to benefit from the tax transparency and benefits of the REIT regime. “The HMRC guidance is intended to assist both REITs themselves and investors in REITs on how to interpret and apply in practice the new REITs legislation and regulations,” said Gareth Lewis, director of finance and investment, British Property Federation.