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

Why advisers shouldn't rush into private markets

Why advisers shouldn't rush into private markets

'There's only so long the hamster wheel can keep turning'

Justin Cash
clock 15 December 2025 • 4 min read
Adviser workload set to rocket ahead of IHT on pensions changes

Adviser workload set to rocket ahead of IHT on pensions changes

Large volumes of clients will need reviews of financial plans

Isabel Baxter
clock 15 December 2025 • 3 min read
Advising silver splitters: Legal insight for older clients getting a divorce

Advising silver splitters: Legal insight for older clients getting a divorce

Why is divorce becoming more common in older clients?

Katharine Bundell
clock 15 December 2025 • 4 min read