Warning Harlequin SIPP investments breach lending limits

Laura Miller
clock

A law firm has warned that some property investments made with Harlequin Group via a self-invested personal pension (SIPP) may have breached lending rules.

Regulatory Legal Solicitors has reviewed contracts where investors have invested in a Caribbean property with Harlequin - a UK-based overseas property sales agent that is not regulated by the Financial Services Authority (FSA) - via a SIPP. Both the pension adviser and the SIPP itself appear in all cases to have missed the limitation on lending where pension schemes are involved, the law firm said. Under SIPP rules, the maximum that can be borrowed to finance a property purchase and development is restricted to 50% of the fund's net assets, less any existing borrowings. Regulatory ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Pensions consultancy calls for 'fairer' Financial Ombudsman Service

Pensions consultancy calls for 'fairer' Financial Ombudsman Service

First Actuarial says pension redress sitting at ‘historic low’

Holly Roach
clock 04 April 2025 • 1 min read
FCA outlines thinking on using pension pots for house deposits

FCA outlines thinking on using pension pots for house deposits

FCA CEO Nikhil Rathi ponders radical thinking on pension savings

Jonathan Stapleton
clock 02 April 2025 • 3 min read
IFS: Growing DC market needs reform to help savers manage risks

IFS: Growing DC market needs reform to help savers manage risks

Savers facing ‘stark’ challenges managing DC pots in retirement

Martin Richmond
clock 02 April 2025 • 6 min read