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The Resort Group, synonymous with luxury holiday resorts in Cape Verde, has become a focal point of investment scrutiny. Established in 2007 and registered in Gibraltar, it promised substantial returns to UK investors via hotel room investments and fractional shares in rooms. Notably, the Group's resorts included Tortuga Beach, Dunas Beach, Lana Beach, and TUI Sensimar Cabo Verde.
Despite the initial splendour and allure, including celebrity engagements, the enthralling façade concealed an intricate web of disappointing returns and impenetrable investments.
The Resort Group's investment model became considerably intricate, with the involvement of pension providers like GPC SIPP and Greyfriars and financial advisors like Active Wealth (UK) Ltd. The Financial Services Compensation Scheme (FSCS) began to unravel this tangled web in July 2019 when claims first arose, collaborating with GPC's administrators to understand the due diligence executed by GPC in allowing specific pension investments including Resort Group.
The investment options offered by The Resort Group ranged from whole hotel rooms to fractional shares in rooms and corporate bonds, with returns advertised up to 18% over three years. These returns were largely dependent upon hotel room rental income. However, a real issue surfaced when these advertised returns remained unfulfilled and investors found it impossible to encash their pension investments.
Investors often purchased a unit in a hotel complex outright or become ‘fractional owners’. These fractional owners were, damagingly, entrapped in the investment without any ability to exit. In numerous instances, investors were charged hefty fees for property purchases that weren’t yet constructed. The failed returns and inflexible exit options left pension investors stranded in SIPPs with ‘declared nil values’.
The bond companies related to The Resort Group, namely TRG Bond Companies I to VII, involved extensive invested capital being loaned to The Resort Group plc (TRG), adding more complexity to the investment scene. However, it was not the investment bonds themselves that raised eyebrows, but the sheer magnitude of the investments in question, culminating in £ millions across the multiple bond issues.
Intense scrutiny intensified with revelations from BBC One’s Panorama: "Pension Rip-offs" documentary which unveiled an unregulated pension introducer earning a 7% commission on transferred investments into the hotel property scheme. It threw light on The Resort Group’s subsidiaries, Lifestyle Connections and First Review Pension Services, showing how investors were manoeuvred through unregulated consultations into seemingly attractive SIPP transfers. Unfortunately, these consultations predominantly misled investors with unsuitable and conflicted recommendations.
The Resort Group, being unregulated, cannot qualify for protection as an investment from the Uk’s Financial Ombudsman or the Financial Services Compensation Scheme. However, the involvement of various UK-regulated financial advisers who have since gone out of business has led the FSCS to accept claims, revealing that they have received over 2,500 claims associated with The Resort Group’s investments.
Several financial advisors, over 50, are implicated in claims related to The Resort Group, with many no longer operational. Among these, CIB Life & Pensions held the lions share of the claims, with its name appearing on more than 1,000 claims related to The Resort Group investments.
The IFAs with liability include:
Consumer Wealth Limited
Gerard Associates Limited
Moneywise Financial Advisors Limited
Blue Ocean Financial Services Limited
Chadkirk Wealth Management Limited
Foreman Financial Services Limited
Strategic Wealth UK Limited t/a Gibro Wealth
Greyfriars Asset Management LLP
Active Investment Services Ltd
Total Financial Control LimitedParklands Wealth Limited
St Martins Partners LLP formerly CUOX LLP
Omega Financial Solutions Limited
Serenus Consulting Limited
Bank House Investment Management Limited
Shah Wealth Management Ltd
Insight Financial Associates Limited
Choices - Your Mortgage Solutions Limited
C.I.B Life & Pensions Limited
Furness Financial Management
Archer Bramley Limited
Kingsway Wealth Management
Consumer Money Matters Limited
CP Financial Claims stands as a beacon of hope for those entangled in the labyrinth of The Resort Group's investments. We understand the intricacies and implications surrounding mis-sold claims and those firms carrying liability in relation to The Resort Group investments Our team is dedicated to unraveling this complex tapestry to bring solace to affected investors.
With extensive knowledge and an experienced team, CP Financial Claims delves deep to assist affected individuals in navigating through the repercussions of their investments, aiming to alleviate their financial predicaments. Our mission is to provide comprehensive support and representation to those who have found themselves ensnared in the intricate web of The Resort Group investments.
If you've transferred into a SIPP and invested in The Resort Group or if the names GPC SIPP, Greyfriars, or Active Wealth (UK) Ltd ring a bell, and you feel you might have been affected, please enter your details below for a free, no-obligation chat.
You are not obliged to use our service. It is possible for you to present your claim for free, either to the firm, or person against whom you wish to complain, or to the statutory ombudsman (Financial Ombudsman Service or Pension Ombudsman Service) or the Financial Services Compensation Scheme, whichever is applicable to your claim.
