Harlequin Property update: Investors face compensation delays

Posted on August 15th, 2014 | Categories - News

Update Harlequin 150pxHarlequin Property investors seeking compensation look to be facing additional delays after an announcement from the Financial Services Compensation Scheme (FSCS).

According a notice published on their website, the FSCS has seen a significant rise in the number of complaints relating to Harlequin Hotels and Resorts, often referred to simply as Harlequin.

The notice goes on to say that the FSCS can only pay compensation where it is “satisfied that authorised firms which have gone out of business are legally liable for any losses potentially suffered by Harlequin investors.”

In news which will mean investors can expect to face further delays the statement continues: “Until FSCS can be satisfied that this is the case, we are not able to confirm whether compensation is due in respect of Harlequin.”

Harlequin Investor Trust

The statement also addressed the “Harlequin Investor Trust”, which has been set up in an attempt to rescue investor’s capital.

Unsurprisingly, investors have also been asking the FSCS about the implications for existing or future claims if they sign up to the trust. Commenting on the trust, the FSCS said: “Until FSCS has reached a decision on whether it can accept claims for compensation in relation to Harlequin, it is not able to comment on any implications for investors of signing up to the “Harlequin Investor Trust” for any claim they may make with FSCS.”

The statement went on to say: “Furthermore, we cannot advise or comment on whether investors should sign up to such an arrangement.” (Source: FSCS)

Investors, who will be frustrated by the potential delays, are advised to take independent legal advice before they decide whether or not to sign up to the trust.

 

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