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: Aviva launches unified charitable foundation

Feel Good Friday: Aviva launches unified charitable foundation

Grant-giving and donation programmes now under the Aviva Foundation

Professional Adviser
clock 16 January 2026 • 1 min read
Meeting the needs of vulnerable consumers in financial services

Meeting the needs of vulnerable consumers in financial services

'The dynamic nature of vulnerability can make determining who's in scope complicated'

Shriya Patel
clock 14 January 2026 • 4 min read
Ten firms achieved CII Chartered status in second half of 2025

Ten firms achieved CII Chartered status in second half of 2025

Across financial planning and insurance

Jenna Brown
clock 13 January 2026 • 1 min read