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FSCS opens up to more Harlequin claims against advisers

Sea-Sand-Beach-Vacation-Holiday-700.jpgAdvisers will be in the firing line as the Financial Services Compensation Scheme begins considering claims against IFAs who told clients to invest directly in property scheme Harlequin.

Harlequin marketed and built overseas luxury property and has come under investigation by the Serious Fraud Office after some developments never materialised and high commissions came under fire. Investments were commonly made from pensioners through Sipps.

While the FSCS has said negligent mortgage advice and advice to pension switch into underlying Harlequin resorts was already receiving payouts, the lifeboat fund had decided that direct investment advice should now also fall in scope.

SFO charges Harlequin boss with fraud

A statement on the FSCS’ website reads: “More people may now have a claim for bad investment advice in relation to Harlequin investments, following a review by FSCS.

“FSCS is now widening the net to include claims for negligent advice to invest directly in Harlequin after new evidence obtained through its recoveries action shows the products are likely to be unregulated collective investment schemes.

“This paves the way for more people who may have been mis-sold a Harlequin product by their financial adviser to make a claim for compensation.”

Money Marketing has previously reported on a number of FSCS decisions that have awarded compensation over bad advice surrounding Harlequin, where the Financial Ombudsman Service had previously rejected the complaint.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. It’s ok. I already had my cheque book out.

  2. … they ‘are likely to be’ unregulated collective investment schemes. So come on, let’s put paid to any regulated adviser, bank or firm being able to recommend (let alone transact) investment business via anything that does not carry regulatory permission/sanction.

    We part-fund the FSCS, so we should be able to decide what is in and what is out going forward. Enough already, we cannot change the past but surely we can shape the future?

    I am tired of hearing about the sort of rubbish that some of our sector is allowed to promote on a daily basis to the public.

    …and don’t get me started on some of the behaviour I am hearing about in the pension transfer business market! You know who you are and what I mean!!

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