Spectre of £400m compensation bill looms as FSCS values Harlequin at nil

Laura Miller
clock

Financial advisers could be on the hook for hundreds of millions of pounds after the latest twist in the Harlequin saga in which the Financial Services Compensation Scheme (FSCS) has written down the value of the investment to nil.

In a document from the FSCS seen by Professional Adviser, dated 12 February and marked ‘compensation calculation', the body lists the value of a Harlequin Property investment as £0.00. A FSCS spokesperson confirmed the decision. "Where applicable we will disregard the residual value in respect of Harlequin investments," they said. The move opens the floodgates for the FSCS to pay the thousands of Harlequin investors compensation on the full amount they put into the unregulated scheme, up to a £50,000 limit. With around £400m originally invested in Harlequin, the compensation bil...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Why investors should be getting revved up about Vietnam

Why investors should be getting revved up about Vietnam

From conflict to confidence

Gabriel Sacks
clock 04 September 2025 • 4 min read
Robeco issues investment advice scam warning as fraudsters pose as employees

Robeco issues investment advice scam warning as fraudsters pose as employees

Name and logo used in fraudulent activities

Jenna Brown
clock 02 September 2025 • 1 min read
Laith Khalaf: Trump makes (some) active funds great again

Laith Khalaf: Trump makes (some) active funds great again

42% of active managers have outperformed a passive alternative so far in 2025

Laith Khalaf
clock 02 September 2025 • 3 min read