The Financial Services Compensation Scheme (FSCS) has paid out £5.9m ($7.4m, €6.6m) in claims relating to property development company The Resort Group (TRG), the lifeboat scheme confirmed to International Adviser.
TGR is unregulated and, as such, clients should not have been eligible for compensation.
But as they were sold offshore property assets by 19 different UK advice firms, and since financial advice is a regulated activity, the lifeboat scheme was able to refund claimants.
Active Wealth features among the firms in question, the company involved in the British Steel pension transfer scandal.
According to FSCS data, it has received 453 claims against TRG and 424 against the 19 advisers.
The sales of the property assets were often connected to either pension transfers or re-mortgages, but many of the 19 advice firms involved have since ceased operating.
The Resort Group is still up and running and, according to its website, it offers investments in five-star resorts mainly situated in Cape Verde.
