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Introduction -UK backgroundThis article does not intend to consider whether or not authorized property unit trusts will offer adequate long-term returns, relative to the risk incurred, but discusses whether the structure and operations of the investment vehicle itself, as now constituted, creates risk in excess of that expected risk associated with typical investments in the property market.The initiative for the creation of authorized property unit trusts came from a 1985 Department of Trade and Industry White Paper, "Financial services in the United Kingdom: a new framework for investor protection". Within this context, unit trusts were seen as a vehicle to broaden the investor base in the UK and a number of reforms were proposed, and ultimately implemented, in order to deregulate the vehicle.A series of Consultation Papers was prepared by the Securities and Investment Board throughout 1989 and 1990. These explored the feasibilities and issues of property unit trusts being made available to the general public. The issues identified included a variety of structural and administrative concerns, including:

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