Glasgow based Adviser Allan McRoberts, also trading as AM Wealth Management Services , was one of four financial related companies declared in default by the Financial Services Compensation Scheme (FSCS) last month.
Other companies include two further advice firms (Montpelier Group (Europe) Ltd and Balfour Group Limited). The Mortgage advice company – The Mortgage Matters Partnership (TMMP) – was also named.
Why were AM Wealth Management declared in default?
The FSCS makes the decision to declare a company in default when it is satisfied that;
- The company has received at least one complaint
- The company is unable (or unlikely) to pay claims made against it.
AM Wealth Management Services has had several previous complaints upheld by the Financial Ombudsman Service (FOS).
These complaints were in relation to the advice it had given to people to invest in Harlequin Property.
AM Wealth Management Services appealed this decision, but the FOS ruled the advice firm did have a responsibility to check the suitability of the investment for the client.
Harlequin Property is a Caribbean property development scheme which promised investors high returns from the proposed 6000 hotel and holiday rental properties it had planned to build. Many people invested in this scheme through their SIPP pensions.
However, with only a fraction of these properties ever having been built, the investments are practically worthless. The Harlequin Group was subject to a Serious Fraud Office investigation, as well as a high court case against its’ Chairman.
The whole Harlequin affair sadly typifies mis-selling at its worst. From cold calling agents offering pension reviews, to bad pension advice and unsuitable investments which resulted in devastating losses.
Also, being an overseas investment, means it is unregulated and therefore not protected by the FCA.
However, if you did received advice from AM or any other adviser to invest in Harlequin, you still might be able to make a claim for compensation. If you’d like to know more, call 0114 266 4216 and chat with one of experienced Claims Handlers.
0114 266 4216