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

Cash ISA allowance cut risks hardening saver/investor divide, advisers warn

Cash ISA allowance cut risks hardening saver/investor divide, advisers warn

Govt policy shift reignites debate around role of cash ISAs

Sahar Nazir
clock 28 January 2026 • 5 min read
Depledge Strategic Wealth Management backs CISI financial planning push

Depledge Strategic Wealth Management backs CISI financial planning push

‘Financial planning is for every week’

Jenna Brown
clock 28 January 2026 • 2 min read
What a classic '80s movie tells us about today's language of financial advice

What a classic '80s movie tells us about today's language of financial advice

'Forty years is a long time in film. Even more so in financial services'

Roger Brosch
clock 27 January 2026 • 4 min read