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FSCS investigates Harlequin promoter over Sipp sales
by William Robins on Mar 11, 2014 at 07:25
The Financial Services Compensation Scheme (FSCS) is investigating Sipp transfers made by advice firm TailorMade Independent into Green Oil and Harelquin hotel investments as it decides whether to place the company into default.
The FSCS said it is considering TailorMade’s involvement advising clients to transfer their pensions into Sipps which were then invested in schemes including Green Oil Plantations and Harlequin Hotels and Resorts.
Although TailorMade Independent Limited is in creditors voluntary liquidation, the FSCS has not yet declared it in default.
It said: ‘We are currently investigating the extent to which TailorMade Independent is liable for any of the losses its customers have suffered.’
In December the FSCS wrote to former clients of TailorMade Independent to determine whether they should receive compensation.
TailorMade was a Sipp and alternative investment promoter that had been involved in promoting property investment through Harlequin.
In March clients of TailorMade hit out at the firm over their investments in Harlequin.
Shortly after TailorMade altered its regulatory permissions, meaning it could no longer carry on regulated activities in relation to new regulated pension contracts.
In April it announced that it was reviewing 20 pipeline Harlequin Property investments with the permission of the Financial Conduct Authority.
In total around 7,000 investors put £300 million into Harlequin, half of this, £150 million was invested on an advised basis.
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