Investments In The Rimondi Grand Hotel
The Rimondi Grand Hotel Investment was sold widely to investors using SIPPs, or Self-Invested Personal Pensions. At least one SIPP provider has dropped the current value of Rimondi investments to £1. Not only are future returns doubtful, but most investors will find it difficult to recover the value of their investment.
Investment in the Rimondi Grand falls outside the regulatory reach of the Financial Conduct Authority (FCA). This holds true for all overseas property investments. In the event of adverse developments, investors cannot look to the Ombudsman or the FSCS for immediate compensation or other forms of help.
Like any unregulated investment, Rimondi Grand should have been considered HIGH RISK from day one. All investors, whether using a SIPP or cash, should have had the risk made clear to them before buying. Did they receive fair warning?
What Happens When High-Risk Investments Are Mis-Sold To Inappropriate Investors?
TheYEC has already seen evidence that strongly suggests mis-selling in the case of Rimondi Grand. IFAs and marketers may have misrepresented the amount of risk the investment involved and recommended it to inappropriate investors. High-risk investments like the Rimondi Grand are only suitable for sophisticated investors and high net worth individuals. These investors have the expertise and financial insulation to avoid or absorb potential losses.
Independent financial advisers have an obligation to verify the suitability of the client before they recommend an unregulated investment like the Rimondi Grand. An IFA that sold such an investment to an unsuitable client may have been negligent, and the investor may be entitled to make a claim for his or her loss.