12th August 2014
The Financial Services Compensation Scheme (FSCS) has been receiving queries from investors regarding FSCS protection in respect of Harlequin Hotels and Resorts ("Harlequin"), and implications for investors signing up to the "Harlequin Investor Trust" for current or future FSCS claims. To pay compensation, FSCS needs to be satisfied that authorised firms which have gone out of business are legally liable for any losses potentially suffered by Harlequin investors. Until FSCS can be satisfied that this is the case, we are not able to confirm whether compensation is due in respect of Harlequin. We will provide an update on our position regarding Harlequin once we are able to do so.
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. Furthermore, we cannot advise or comment on whether investors should sign up to such an arrangement. We suggest that investors consider taking independent legal or professional advice before signing up to the "Harlequin Investor Trust", to ensure they understand any potential implications for any claim that may be made with FSCS now or in the future.