Financial Services Compensation Scheme  

FSCS to reopen offshore property cases

Like many hotel groups across the world The Resort Group has also been impacted by the coronavirus crisis and associated lockdowns.

In an email to a UK Sipp investor this month Charlie King, COO of The Resort Group, admitted investors may find it difficult to part with their assets during the pandemic as there was now almost no buyer interest in fractional stakes in the group’s properties.

TRG investments - and the way they were sold - were put under investigation by the Financial Conduct Authority in 2017, a probe that is understood to still be ongoing.

Good guys pay

Under current rules functioning advice firms will be expected to make up for the cost of compensating any claims brought against failed advisers.

But change could be on the horizon. In a speech yesterday Charles Randell, chairman of the Financial Conduct Authority, said the system needs to be redesigned so "polluting firms" in the financial sector paid the bill for high risk and unsuitable investments, not "well-run firms" via the compensation scheme. 

The chairman of the City watchdog echoed what many advisers have been saying for a long time, as he warned the already "unacceptable" FSCS levy was likely to increase further as a result of the coronavirus crisis.

The FSCS levy to be shouldered by advisers this year had increased by £16m to £229m, predominately as a result of an extra £44m set aside by the lifeboat body to meet claims for misleading advice against the collapsed mini-bond provider London Capital & Finance.