One of the favourite types of investment schemes is offshore property.
This comes in forms such as:
- Farmland to grow crops
- “Green” investments which produce carbon credits
- Hotel rooms
- Land for development
- Parcels of land to be developed in a block and sold on
- Investment funds specialising in owning overseas property
These are popular with unregulated sellers because they sound interesting and successful. Some of them offer “free” visits to the sunny destination. However, despite the appearances, these are often fraught with problems such as overseas planning permission, inability to raise enough money to finish the project, leverage, or as happened with Sustainable AgroEnergy the whole scheme was a scam which resulted in three British men being sentenced to prison after a lengthy prosecution by the Serious Fraud Office.
Unfortunately, when presented with sharp salesmen and promotional material that looks like it has come straight out of the most reputable of banks it is easy to overlook the risks involved and invest, either directly or through a pension.
It is vital to be aware of the six year time limit to bring claims and seek good, independent advice before it is too late.
Many of these amount to unregulated collective investment schemes and claims can be pursued against regulated financial professionals.
Sometimes there are solicitors involved and a better claim may be brought against the solicitors and these claims are very different to a financial mis-selling case, it is important to ensure that you have advice from someone with a track record of winning imaginative claims.