However, Regulatory Legal said that it will “shortly engage” with the FSCS to “persuade” them to use the figure being used by Sipp operators in their valuations as opposed to the full value. The update added FSCS will need to issue/publish a “policy in terms of the value of Harlequin redress”.
Regulatory Legal was not able to respond to requests for comment at the time of writing.
A spokesperson for the FSCS told FTAdviser: “FSCS has not yet reached a decision on whether departed IFAs can be held liable for losses in relation to investments in Harlequin Resorts. Accordingly, no compensation has been paid to date by FSCS in respect of investments in Harlequin.
“Our position is as per our announcement in August. We will update claimants as soon as we are in a position to do so.”
Last October, Harlequin Management Services (South East) Ltd, the UK sales are of the embattled overseas property development business which trades as Harlequin Property, entered liquidation after it was put into administration 18 months ago.
Harlequin Property was the primary UK sales agent for Harlequin’s Caribbean-based resort development companies. It was not regulated by the Financial Conduct Authority.
In the same month, FTAdviser revealed that a second Harlequin firm had gone bust - Harlequin Hotels and Resorts (UK) Ltd entered voluntary liquidation - although the company said that the latest administration did not affect investors, investments or completions.
According to a spokesperson for Harlequin, this was a separate company which served as an “administrative arm that had nothing to do with investments or investor funds (hence no bank account)”.