Advisers 'worried' about looming Harlequin claims

Lawyers expecting 1000 new claims

Hannah Godfrey
clock • 3 min read

Advisers are worried about increased cost and reputation damage following the news the Financial Services Compensation Scheme (FSCS) has expanded its claims scheme for failed Harlequin investments.

The FSCS said in a statement on Tuesday it would start to pay out on claims related to direct investments in the failed property scheme, having previously accepted claims against negligent mortgage advice and pension switching only. It said it had found the products were likely to be unregulated collective investment schemes (UCIS), meaning they are designated investments for regulatory purposes and qualify for FSCS protection. The FSCS is industry-funded, therefore the cost of compensating those clients will largely fall on the back of advisers. Informed Choice managing director M...

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 Your profession

Feel Good Friday: Royal London opens applications for £10,000 women and girls' rugby grant

Feel Good Friday: Royal London opens applications for £10,000 women and girls' rugby grant

Third year of annual Championing Women and Girls’ Grassroots Rugby Award

Professional Adviser
clock 05 June 2026 • 1 min read
Cohabitation reforms to offer unmarried couples 'more financial security'

Cohabitation reforms to offer unmarried couples 'more financial security'

Government launches consultation

Sophia Panayi
clock 05 June 2026 • 2 min read
M&A platform finds strong pipeline of non-PE acquirers

M&A platform finds strong pipeline of non-PE acquirers

Data from Project Exit shows regional and local advice firms make up more than half of buyers

Isabel Baxter
clock 05 June 2026 • 2 min read