FSCS expands Harlequin compensation scheme

FSCS expands Harlequin compensation scheme

Investors who lost money as a result of the Harlequin property investment scheme may now be able to claim against their adviser for bad advice, according to the Financial Services Compensation Scheme (FSCS).

The scheme is already paying claims against firms for negligent mortgage advice and pension switching where the underlying investment was in a Harlequin resort.

Harlequin built overseas property and marketed the investments.

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It has been investigated by the Serious Fraud Office (SFO) after some developments were never completed.

There has also been controversy about the levels of commission paid.

The FSCS recently conducted a review, and has now widened the net for those entitled to compensation under the scheme to include claims for negligent advice to invest directly in Harlequin after it recently uncovered fresh evidence in the course of its investigation that indicated the products through which investors accessed Harlequin developments are likely to have been accessed were potentially unregulated collective investment schemes (Ucis).

This means they are designated investments for regulatory purposes and so qualify for FSCS protection.

This allows more people who may have been mis-sold a Harlequin product by their financial adviser to make a claim for compensation.

Anyone who thinks they may have a valid claim should contact FSCS for more information.