FSCS to Reopen Cases Brought Against The Resort Group - Cape Verde Investments
Updated: Nov 25, 2020
The Financial Services Compensation Scheme recently announced that they are to reopen compensation cases made against advisers in relation to investments made through The Resort Group for luxury offshore Cape Verde properties scheme.
The lifeboat scheme already has a list of claimants who received interim payments below the scheme’s maximum claim threshold of £85,000 and have told FTAdviser that these claims could now be re-opened to pay any additional compensation where necessary.
The claims concern The Resort Group assets that were brought against the following 19 failed advice firms.
Active Wealth (UK) Limited
Consumer Wealth Limited
Gerard Associates Limited
Moneywise Financial Advisors Limited
Blue Ocean Financial Services Limited
Chadkirk Wealth Management Limited
Foreman Financial Services Limited
Strategic Wealth UK Limited t/a Gibro Wealth
Greyfriars Asset Management LLP
Active Investment Services Ltd
Total Financial Control Limited
Parklands Wealth Limited
St Martin's Partners LLP formerly CUOX LLP
Omega Financial Solutions Limited
Serenus Consulting Limited
Bank House Investment Management Limited
Shah Wealth Management Ltd
Choices - Your Mortgage Solutions Limited
Furness Financial Management
The Resort Groups property assets, four hotel developments in Cape Verde were sold to UK SIPP investors over the past decade as either whole hotel rooms, fractional shares in rooms or through a range of corporate bonds.
The FSCS announced this month that “customers will full ownership of units to utilise independent valuations from a certified company, and customers with fractional memberships to utilise nil value for the purposes of compensation calculation.”
However, where some customers have received a letter from TRG (Resort Group) confirming that they will be receiving an amount to be paid into their SIPP following the sale of one or more units, this valuation can be used by the FSCS with a 10% uplift plus taking into account any significant pension transfer losses at quantification date.
Since 2017, The Resort Group Investment were put under investigation by the Financial Conduct Authority, the FSCS has paid out £5.9m on claims due to how these investments were sold and where customers have received interim/partial compensation they do not need to contact the FSCS as they hold enough details for each of these cases.
If you have been affected by any of the financial advice groups listed above that were associated with The Resort Group Investments and would like to discuss how we may be able to help give us a call on 01903 868251.
Information in the article was sourced from