Industry bill for Harlequin clean-up could hit £120m

Main distributors already triggered £60m payout

Laura Miller
clock • 2 min read

The cost to the financial services industry of addressing losses linked to Harlequin Property and advisers who sold its products is likely to run to £120m, according to investors' lawyers.

A redress bill to cover poor advice from the main distributors of Harlequin investments has already hit £60m, figures from the Financial Services Compensation Scheme (FSCS) have revealed. This number is for just two failed advice businesses, TailorMade, which to date has cost £29.6m in compensation, and 1 Stop Financial Services, which has cost £31.4m. Some of that compensation will relate to other investments. However, lawyers acting on behalf of 1,200 investors have said the final redress bill for Harlequin advice given by firms no longer trading - to be paid for by working financia...

To continue reading this article...

Join Professional Adviser

  • 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

Industry Voice: Active vs passive investing - how the debate stacks up

Industry Voice: Active vs passive investing - how the debate stacks up

The active vs passive investing debate shows no sign of abating and can sometimes seem one-sided. But is there a case for both in your clients’ portfolios and, if so, how do you strike the appropriate balance?

Alex Funk, CIO, Schroder Investment Solutions
clock 25 November 2022 • 5 min read
Advisers rate MPS service and support over suitability

Advisers rate MPS service and support over suitability

‘Additional pressure heaped on advisers this year by global events and market shocks’

Ayesha Venkataraman
clock 25 November 2022 • 2 min read

Industry Voice: Uncovering Opportunities for Investors Around the Globe

PIMCO Income Strategy

PIMCO
clock 24 November 2022 • 1 min read