German Property Group: Insolvency

(asked on 18th January 2021) - View Source

Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the implications of the collapse of the German Property Group for UK investors in that company, and the prospect of compensation payments.


Answered by
 Portrait
Lord Agnew of Oulton
This question was answered on 1st February 2021

The Financial Conduct Authority (FCA) is working closely with financial advisers who advised customers to make these investments, and operators of Self Invested Personal Pensions (SIPPs), whose customers currently hold investments with the German Property Group.

The FCA has published a joint statement with the Financial Services Compensation Scheme (FSCS) and the Financial Ombudsman Service (FOS). The statement sets out what UK consumers should do if they invested in the German Property Group via an FCA authorised firm, either a financial adviser firm or a SIPP operator. If the customer believes these investments were mis-sold, they may be eligible for compensation via the FOS or FSCS. The FCA’s statement can be accessed at https://www.fca.org.uk/news/statements/gpg-companies-preliminary-bankruptcy-proceedings.

Companies under the German Property Group are incorporated in Germany and have never been authorised by the FCA. However, consumers should be assured that the FCA is working closely with the FOS and FSCS on this matter and will share any further updates as and when they are able to.

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