Mis-Sold Investments: Cool Blue Samui
An investment in Cool Blue Samui is considered HIGH RISK. This overseas property investment was not regulated by the Financial Conduct Authority. Cool Blue offered investors high returns on the construction of a villa complex on Thailand’s heavily-developed Koh Samui island. Many investors were told returns could be paid directly into their SIPPs.
Too many retail investors are pushed toward high-risk investments like Cool Blue Samui without understanding or being informed of the risks involved. Because this sort of overseas property investment is unregulated by the FCA, investors cannot be compensated by the FSCS if things go wrong. The FOS cannot help with unregulated investments either.
Overseas property investments like Cool Blue Samui are only suitable for certain types of investors. These include:
* High Net Worth Individuals – defined as those with more than £250k of net assets or annual earnings over £100k.
* Sophisticated Investors – defined as individuals with extensive experience and knowledge in investing.
If neither of these descriptions fits you or you were sold into Cool Blue Samui without a full description of its risks, you may have been mis-sold. This, in turn, may make you eligible to make a claim against your financial adviser for providing negligent advice.
How You May Have Been Mis-Sold Cool Blue Samui
The risks involved in an investment like Cool Blue Samui make it unsuitable for use as a retirement investment by most investors. Unregulated high-risk investments are inappropriate for that purpose.
These investments are tailored to Sophisticated Investors who understand how to manage unregulated investments. These are individuals who emphasize the ‘S’ in ‘SIPP’ – they actively manage their pension investments.
Sophisticated Investors also understand the risks associated with overseas property investment and possess the knowledge required to make informed decisions about them.
Such investments are also suited to Hight Net Worth Individuals because money invested in them is not backed by FSCS or Ombudsman compensation. HNWIs are expected to have alternative revenue sources available to insulate them from the loss of a high-risk investment. HNWIs are able to recover from losses more quickly and fully than average pension savers.
An Independent Financial Adviser has a responsibility to assess both the details of a SIPP investment and your specific financial situation before recommending that you invest pension funds. If you were sold an investment like Cool Blue Samui, which did not fit your situation, the adviser who sold it may have been negligent.