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Why you could have been mis-sold an overseas property investment

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An overseas property investment is the ultimate sun-soaked, money-making dream; or so many people are led to believe.

In reality most overseas property investment schemes are unregulated by the FCA (Financial Conduct Authority). They also carry incredibly high levels of risk, transforming these seemingly lucrative assets into potential money pits for investors. 

Overseas property investments: a brief overview

As the name suggests, overseas property investment schemes involve placing money into property developments in countries across the world. These are both commercial and residential. The developments are often picture-perfect hotels and luxury villas in idyllic locations. This makes them appear guaranteed to pull in huge returns. It is therefore little wonder that they prove to be attractive and irresistible prospects to investors. The schemes seem like a sure-fire way to boost their pension pots.

However, whether they are sold as stand-alone investments or through a SIPP (self-invested personal pension), not all overseas property investments are sold fairly or to the right people.

The headlines in recent years have been peppered with the names of investment schemes involving overseas property construction. This includes the likes of The Resort Group, Cool Blue Samui, Harlequin and Cumulus. Some of these schemes collapsed, leaving investors in the dark about the value of their investment. Others also turned out to be unregulated by the FCA. They were also mis-sold to investors who they weren’t suitable for.

How do I know if my overseas property investment SIPP has been mis-sold?

If you have been mis-sold an overseas property investment SIPP and persuaded to transfer your pension pot into one of these schemes, your savings could be at risk. But how do you know if your scheme has been mis-sold?

Your overseas property investment SIPP could have been mis-sold if:

  • You don’t earn over £100,000 per year
  • You aren’t an experienced investor
  • The risks were too high for your needs

Financial advisers are under an obligation to ensure that all clients they recommend these schemes to are high net-worth individuals. They must fully understand the high-risk nature of overseas investments. Advisers should not be recommending schemes that are not FCA regulated.

A mis-sold SIPP investment can have terrible consequences for investors. In some cases, entire pension pots have been wiped out when schemes collapse. If any the above points apply to you, your SIPP was mis-sold. Therefore, you could be eligible for compensation.

Our team of experienced solicitors can investigate your case and advise you on the best approach to ensure you are compensated if you’ve been mis-sold. All you need to do is get in touch and tell us about your situation; we’ll handle the rest. Give us a call or get in touch via our contact form today.