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2 December 2020 | Comment | Article by Neil Stockdale

Did you invest in The Resort Group via a Rowanmoor SIPP?

In August 2020, we wrote that the Financial Services Compensation Scheme (‘FSCS’), had started to reopen claims for compensation in respect of investments in The Resort Group.

The Resort Group offered the opportunity to invest in the development of resorts at holiday “hot spots” such as Cape Verde, with the promise of high returns. However, structural issues and COVID-19’s crippling effect on the tourism industry, has worryingly led to the suspension of investors’ bond yield payments.

As well as not being made aware of the high risk and speculative nature of The Resort Group investment, many investors purchased the investment through their Self-Invested Personal Pension (‘SIPP’) schemes operated by firms such as Guinness Mahon, The Lifetime SIPP, GPC, Berkeley Burke and Rowanmoor.

Consequently, the Financial Ombudsman Service (‘FOS’) is said to have received 400 complaints concerning the lack of due diligence carried out by SIPP providers in respect of The Resort Group investment, the majority of which are reported to be against Rowanmoor.

It is our understanding that the Ombudsman Service is currently progressing a number of sample cases against Rowanmoor that are representative of the majority of these cases.

If you invested with The Resort Group through a SIPP and believe you may have a claim, we may be able to assist you in bringing a claim for compensation.

Even if you have already received compensation as a result of a claim against a financial advisor, you may be able to make a separate claim against your SIPP provider.

Contact us today for a free, no obligation consultation.

Author bio

Neil is head of the firm’s group actions and financial mis-selling teams, specialising in handling claims for financial mis-selling relating to energy contracts, pensions, investments and timeshares.

Disclaimer: The information on the Hugh James website is for general information only and reflects the position at the date of publication. It does not constitute legal advice and should not be treated as such. If you would like to ensure the commentary reflects current legislation, case law or best practice, please contact the blog author.

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