In a notice sent out today, the regulator advised any investors which are considering paying money to the Harlequin group of companies to “do so with caution”.
The FCA said: “If you are considering investing in the Harlequin group, we urge you to proceed with caution. Ensure that you fully understand the risks involved with the investment.
“We recommend that you contact an appropriately qualified financial adviser and obtain legal advice from lawyers in the country where the property is located before proceeding with an investment in a company in the Harlequin group.”
Today’s notice from the City watchdog follows an initial warning in January in which it alerted advisers to the fact that many investors in both SIPP and SSAS pensions schemes had been investing in the overseas property developer.
The FCA pointed out that since the initial alert, the Serious Fraud Office had begun an investigation into the Harlequin group of companies which is ongoing, and that Harlequin Property, a trading name of Essex based Harlequin Management Services (South East), had filed for administration.
Most recently, the Harlequin Investor Group put forward an offer which would see the assets of Harlequin put into trust for the benefit of investors.