Harlequin survey: 95% of investors were not told risks

A survey of almost 300 Harlequin investors suggests up to 95% were not made aware of the risks of investing in the troubled overseas property company by their agents or advisers.

In a survey of 292 investors by law firm Regulatory Legal, which acts on behalf of some Harlequin investors, just 5% said it was explained to them that, should they fail to pay the 70% balance due on their investment, they would lose their 30% deposit. According to documents seen by Investment Week's sister title IFAonline, Harlequin offered investors a "100% finance scheme". This included paying loan repayments plus interest until completion of the investment property if the investor borrowed the 30% deposit, followed by a 70% loan to value "guaranteed" mortgage. However, only 1% of ...