Harlequin distributor’s advisory arm goes into liquidation

Tailormade Independent Ltd, an adviser firm in a group of companies which previously promoted products by the embattled Harlequin Property, has gone into administration.

According to a statement from the company, Tailormade stopped taking on new business on 20 January 2013 and launched a review of its advice processes.

In March of this year, the Financial Services Authority imposed a restriction on the firm disallowing it from carrying on regulated activities in relation to new pension contracts.

Sister company Tailormade Alternative Investments stopped promoting Harlequin products, saying it was no longer believed to be an appropriate investment.

Paul Finnity of RSM Tenon Restructuring, which is advising Tailormade Independent, said: “We are working with the directors of Tailormade Independent Limited towards bringing forward the liquidation of the company.

“With this in mind, a creditors’ meeting has been called for October 2013, at which time we will be able to release further information.”

The future of Harlequin Property has been the subject of much discussion following alerts from the Financial Services Authority targeted at advisers recommending the investments and an announcement that the Serious Fraud Office was investigating complaints into the property group.

Much of the coverage surrounding Harlequin centres on the fate of under-construction Carribean resorts, including its flagship Buccament Bay in Barbados. Construction on this resort came to a halt in April due to an ongoing £8.5m legal battle over alleged misappropriation by a former contractor, which has now been settled in Harlequin’s favour.

After Harlequin subsidiary Harlequin Management Services (South East) Limited, trading as Harlequin Property, entered administration, the firm announced it was working with law firm Regulatory Legal to explore options for restructuring.