The latest development in the Harlequin saga is reported by the FSCS on 17thFebruary 2015.
The FSCS pays out claims up to certain limits, for mis-sold investments to disappointed investors. One issue has been whether or not advice to enter into Harlequin property investments fell within the sphere of regulated advice for which FSCS is allowed to compensate.
Although Harlequin was an unregulated property investment scheme dealing with luxury hotels in the Caribbean, it seems to have been recommended to UK investors by various financial advisors and other intermediaries.
It is reckoned that Harlequin has taken about £400,000,000 from investors to invest in various property developments across the Caribbean.
It is now clear that investors who were advised to put money in from self-invested personal pension schemes (SIPPs) can bring claims against their advisers or against the FSCS if their adviser, or their network, is no longer trading.
It is important that disappointed investors act quickly to bring their claims against their advisors because the way in which financial advisors are insured against professional negligence claims.
Waiting and seeing is probably not the best tactic when you have suffered an investment loss.
We would strongly advise anyone who has doubts about the bona fides of their investments to seek independent legal advice from James Taylor of Wards Solicitors, who specialises in Financial Services dispute related cases.