The Freedom Bay resort in St. Lucia was an overseas investment scheme in a luxury Caribbean eco hotel development.
Investors were promised 6% returns during construction and 8% for the following three years.
There was also a Fractional Ownership option to this investment. This meant clients not only invested in the development, but had entitlements to one or more weeks in a luxury apartment or villa. Operating a little bit like timeshare in that they could also exchange these weeks for other resorts or let the hotel rent them out and earn income.
However, things did not go to plan and despite being scheduled for completion in 2013, it remained unfinished. The Malgretoute Hotel Development Company who owns the resort went into receivership.
Freedom Bay was a high-risk, unregulated scheme which was mis-sold to many people through their SIPP, despite the fact the investment was unsuitable for them.
The FCA does not cover these types of investments, however if you received regulated financial advice you may still be able to take action.
Whilst each case is individual, as mis-selling specialists we know to look for certain signs that in our experience indicate that mis-selling may have happened.
Our assessment is free and there’s absolutely no obligation to use our service if you have case.
You are not required to use our services to pursue your claim. You can also seek further advice or shop around subject to any time limits within which a claim must be made.
It is possible for you to present the claim for free, either to the firm or person against whom you wish to complain or to the statutory ombudsman (Financial Ombudsman Service or Pension Ombudsman Service) or the Financial Services Compensation Scheme, whichever is applicable to your claim.