InvestUS was an investment fund sold to clients across the UK. In many cases, advisors did not accurately explain this fund’s risks, prompting concern that they were not meeting the Financial Conduct Authority (FCA) rules. In theory, the fund was meant to purchase foreclosed properties across the US, starting first in Detroit, Florida, and Chicago. They would then renovate the properties and sell them for a profit. However, this is not what happened, and investors lost their pension savings. Did this happen to you?
InvestUS was run by the UK’s Steven Right, who also founded Cherish Wealth Management, a company that mis-sold Sipp pension plans. The fund ran from July 2013 through to the end of June 2015, and was registered in Seychelles. At least £77 million was invested in the scheme, via cash or Sipp. The Financial Services Compensation Scheme (FSCS) awarded more than £7m in mis-sold Sipp compensation for Cherish’s clients.
Hundreds of British advisors mis-sold Sipp pension funds to their clients without properly explaining the risks. Did your advisor suggest a fund like InvestUS to you without accurately detailing that it was a high-risk investment? If so, you could qualify for mis-sold Sipp compensation.
While the InvestUS Exit Strategy was initially deemed a ‘creative solution’ to help remedy the US class divide, it ultimately ended in ruin for thousands of investors worldwide. The fund’s promotional materials suggested a net return of 15% per year over three years. They also promised that the returns would be reinvested in the scheme.
The first payment went out to investors with no issues. However, the remaining payments were delayed for more than two years, or never materialized. Auditors ruled this to be a conflict of interest. Concerningly, they stated, the “information available to date had been inhibited by the lack of detailed accounting… we are unable to provide evidence of the borrowing companies’ finances.”
Many complaints and claims have been made to the Financial Ombudsman and the FCA, as many Independent Financial Advisors sold this fund while also investing in it themselves
Are you entitled to mis-sold SIPP compensation from InvestUs?
Did you invest any of your pension funds with InvestUs? InvestUs is now officially dissolved, and they can no longer pay out any returns. However, the Financial Services Compensation Scheme (FSCS) has made mis-sold SIPP compensation available to people like you. If an InvestUs advisor convinced you to put your pension money into their investments, only for that investment to fail, you might qualify for mis-sold SIPP compensation.
Our claims experts can advise on whether you could qualify for mis-sold SIPP compensation. Apply online today for an information pack to learn more.
FSCS InvestUS Claim
InvestUS has been declared in default by the Financial Services Compensation Scheme. This means that the UK’s compensation scheme for failed financial services firms will pay compensation for valid mis-selling claims. Allegiant can assist you with claims to the FSCS about InvestUS. Fill in our online application form to get started.
You do not need to use a claims management firm to make your claim and if your complaint is not successful you can refer it to the Financial Ombudsman Service or in the case of a failed firm, the Financial Services Compensation Scheme, for free.
In this article, Allegiant’s Pensions & Investments Manager, Andy Ramsay, explores the fundamental differences between between the Court and Ombudsman routes for resolving pension & investment claims. The article highlights key differences in:-
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You may have heard of the Financial Services Compensation Scheme (FSCS), but do you fully understand its vital role within the UK’s financial services sector? In this short piece, we look at:-
This article will be of particular interest to anyone with a potential compensation claim against a financial service provider that has collapsed.Click to Read
The Financial Conduct Authority (FCA) has identified ‘serious and ongoing failings’ by both Individual Financial Advisers (IFAs) and Self-Invested Personal Pension Providers. Typically, mis-selling is related to the “wrong” type of investor being given poor or misleading advice as to what investments were relatively safe and right for them. In this summary, we look at What a SIPP is, and how they have been mis-sold, together with the FCA’s review into sector malpractice.Click to Read
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• Compensation is £1,000, the fee is £150 plus VAT £30. This means the amount payable to us is £180 leaving you with the benefit of £820.
• Compensation is £3,000, the fee is £450 plus VAT £90. This means the amount payable to us is £540 leaving you with the benefit of £2,460.
• Compensation is £10,000, the fee is £1,500 plus VAT £300. This means that the amount payable to us is £1,800 leaving you with the benefit of £8,200.
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