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