A number of companies in an overseas investment scheme called German Property Group (GPG) have entered preliminary bankruptcy proceedings in Germany, prompting a response from the three of the UK’s financial watchdogs.
“This means that any money you might have invested in this scheme is at risk and you need to take action now to help recover this,” the Financial Conduct Authority, the Financial Services Compensation Scheme and the Financial Ombudsman Services said in a joint statement, issued on Thursday.
Eligible for compensation?
“The FCA is aware that UK consumers have invested in GPG, either directly or via a self-invested personal pension scheme (Sipp) or small self-administered scheme (Sass) arrangement.
“We are working closely with the FSCS and the Ombudsman service on this matter and will be issuing further information as the situation develops.
“If you invested your Sipp or Sass in GPG through a financial adviser and/or a Sipp operator in the UK and you believe you were mis-sold, you may be eligible for compensation.
“We are working with those financial advisers we have identified as advising UK customers to invest in GPG, as well as the Sipp operators we have identified that are holding people’s investments.”
Who to contact
Where the advice firm or Sipp operator is still trading, investors should contact them in the first instance with a complaint.
However, if they are not satisfied with the response, they should get in touch with the Ombudsman service.
Where the firm or operator has ceased trading, the investor should make a claim for compensation with the FSCS.
