A COMPANY linked to a collapsed property firm is being investigated by the financial watchdog, it has emerged.

Dylan Harvey Land Investments (DHLI), an arm of Padiham-based Harley Scott Holdings, is the subject of a Financial Services Authority (FSA) probe.

No details of the inquiry have been released but the FSA regulates businesses linked to financial services and ensuring they operate within the law.

Harley Scott Holdings, run by Read-based businessman Toby Whittaker and was formerly known as the Dylan Harvey Group, is also the holding company of Dylan Harvey Residential (DHR).

DHR, which acted as a sales agent on developments, collapsed in 2009 owing more than £100million after the property market nosedived.

An update in the Harley Scott report, which includes financial figures to the year ending February 29, 2010, says: “Since the year end, Dylan Harvey Land Investments Limited underwent FSA investigation.”

It adds that a final report has yet to be seen and there remains ‘material uncertainty’ over the cost to Harley Scott, which notched up pre-tax profits of £1.3million on sales of £15million last year.

Meanwhile, DHR remains in the hands of liquidators.

In the aftermath of DHR’s collapse, it emerged that East Lancashire investors were owed more than £200,000, with most expected to lose their money.