The latest investors update shows that Dolphin Capital, now trading as the German Property Group, has placed a number of its companies into insolvency in Germany.
Investors in Dolphin Capital loan notes have been left in a position of uncertainty for a number of months whilst returns were not paid out and the financial position of the companies remained unclear. It now appears that the intended returns will not be paid and instead, investors will be treated as creditors of the companies during the insolvency process meaning the return of their funds will not be guaranteed.
In brief, the Dolphin Capital investment involved investors providing a loan which would be used for the purchase and re-development of listed buildings in Germany. It was intended that the loan would incur interest and eventually generate an income as a return on the investment.
This was a high-risk and non-standard investment which was unsuitable for many unsophisticated and inexperienced investors. It was sold as an investment with guaranteed returns in excess of 13% which was secured against the properties to be developed.
Unfortunately, many investors were poorly advised in respect of the suitability of the investment and are now left out of pocket having lost their pension funds or cash funds to this scheme.
If you were advised to invest in Dolphin Capital by a financial advisor regulated by the Financial Conduct Authority, you may be able to complain about the advice you received. You may also have a claim if you invested in Dolphin Capital through a Self Invested Personal Pension (‘SIPP’).
