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German Property Group: Insolvency

Question for Treasury

UIN 132849, tabled on 30 December 2020

To ask the Chancellor of the Exchequer, whether he plans to ask regulatory agencies to make an assessment of the implications for his policies of UK-regulated financial advisors promoting, recommending and offering investment in German Property Group (formerly Dolphin Capital and Dolphin Trust).

Answered on

14 January 2021

The UK regulatory agencies are aware of the bankruptcy of German Property Group (GPG), formerly known as Dolphin Trust, and the effect on UK-based investors.

The Financial Conduct Authority (FCA) has published a joint statement with the Financial Services Compensation Scheme (FSCS) and the Financial Ombudsman Service. The statement sets out what UK consumers should do if they invested in GPG via an FCA authorised firm – either a financial adviser firm or a Self Invested Personal Pensions (SIPPs) operator – and they believe they were mis-sold. This includes how to complain to the Ombudsman service or submit a claim to the FSCS. The statement can be accessed on the FCA’s website (https://www.fca.org.uk/news/statements/gpg-companies-preliminary-bankruptcy-proceedings).

Companies under the German Property Group are incorporated in Germany and have never been authorised by the FCA. However, consumers should be assured that the FCA is working closely with all relevant external stakeholders on this matter and will share any further updates as and when possible.

Answered by

Treasury