Compensation

UK citizens are protected to some degree by the Financial Services Compensation Scheme (FSCS) when investments fail and the advisor who advised the investor is no longer in business. https://www.fscs.org.uk/

Where an advisor remains in business the Financial Ombudsman’s Service (FOS) is the arbiter between the investor and advisor regarding compensation. https://www.financial-ombudsman.org.uk/

Both FOS and the FSCS claims are limited to those advisors who are or were regulated by the FSA, as was, and is now the Financial Conduct Authority (FCA). Whilst each potential claim should be considered on its own facts, typically SIPP, mortgage and personal loan investors received regulated advice and may therefore qualify to make a claim. Cash investors generally didn’t receive regulated advice and consequently have had difficulty in making claims. However, following the FSCS statement of 5th September 2017, defining the Harlequin investment as a UCIS, some cash investors may now be able to claim compensation.

For a FOS claim the upper limit is understood to be up to £150,000 per claim but under some circumstances can be as much as £350,000,

The scheme is designed to compensate by putting the claimant back into the position they would have been had they not received the negligent advice, not create a profit! Fellow investors tell us that they have recovered up to £100,000 for an FSCS claim where the investment was in joint names, e.g. husband / wife. Other successful claimants have received much less. For example, if their investment was £30,000 then the maximum sum recoverable under the scheme would be that figure.

So how do you make a claim ?

You can apply directly to FOS or the FSCS yourself via the web site links provided above. Both have Help Desks which can be contacted for assistance.

You, could also search for a regulated claims management company and discuss your situation with the company of your choice.

However, we understand that Harlequin Investors who may not wish to conduct their own claims may also feel wary of using third party advisor firms without a recommendation.

Click Here for further information.

This web site is run by volunteers, who are also investors, to provide as much factual information as possible to try to help investors in Harlequin properties understand the status of the project.

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