Mis-sold Global Plantation Investments
Global Plantations Limited invested into forestry investments in Malaysia and Bali. The investment model, based on the planting, cultivation and harvesting of trees, was pitched to investors as a secure, high-yield and environmentally-friendly opportunity. However, the investment was not as secure as it was billed to be, as the trees were still at risk from timber diseases, pests, natural disasters, bad weather, changing prices of timber and local political changes.
In June 2017, Global Plantations Limited entered into insolvency proceedings. The liquidation of the company left investors unsure of the value of their investment, with many at risk of losing considerable sums they had invested through SIPPs.
As Global Plantations Limited investments were high risk, and illiquid, they weren’t suitable for ordinary investors looking to grow a pension pot. In these cases it is possible for customers to seek compensation and recoup some of their losses.