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...
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