More people are now likely to have a claim for bad investment advice in relation to Harlequin investments, following a review by 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, the FSCS said in a statement published on its website yesterday.
The statement said: “FSCS is now widening the net to include claims for negligent advice to invest directly in Harlequin after new evidence obtained through its recoveries action shows the products are likely to be unregulated collective investment schemes (UCIS). This means they are designated investments for regulatory purposes and qualify for FSCS protection.”
As a result, the FSCS said that this paves the way for more people who may have been mis-sold a Harlequin product by their financial adviser to make a claim for compensation.
As reported, with regards to the Harlequin Buccament Bay resort development scheme on the Caribbean island of St Vincent (pictured above), investments fell into a series of difficulties and court wrangles that left a large number of investors, across a range of products, with the prospect of losing some and in some cases potentially all of their investment.
Harlequin has been investigated by the Serious Fraud Office (SFO) after some developments were never completed. There has also been some controversy about the levels of commission paid to advisers.
Anyone who thinks they may have a valid claim should contact FSCS for more information.