One of the most common reasons people do not pursue UCIS claims is the assumption that if the original firm no longer exists, the claim has gone with it. In many cases that assumption is wrong. Here is why.
When people discover that a financial firm or solicitor involved in their UCIS investment has since closed, the natural conclusion is that there is nobody left to pursue. It feels like the door has closed before it was ever opened. But the legal position is more nuanced, and in a significant number of cases, firm closure does not end the options available to the investor.
1. Solicitors are required by law to hold professional indemnity insurance. That insurance does not simply disappear when a firm closes. Claims can often be brought against the policy even after the firm has ceased to operate. The insurer takes the place of the firm for the purposes of the claim.
2. Where the investment involved a broader regulated financial services firm, the Financial Services Compensation Scheme may be relevant. Whether FSCS cover applies depends on the specific circumstances, but it is always worth investigating.
3. Where individuals within the firm were personally regulated by the FCA, it may be possible to pursue those individuals directly, again depending on the specific circumstances and what role they played.
The role of the solicitor in your UCIS case
Not every UCIS claim involves a solicitor directly. But in a significant number of cases, particularly those involving pension transfers, property-linked schemes, or investments structured as loan notes or bonds, a solicitor was involved at some point in completing or facilitating the transaction. Where that involvement existed, it created a duty of care to the client.
If a solicitor reviewed the investment documentation, advised on the structure of the arrangement, handled the transfer of funds, or simply failed to raise concerns they should have raised, they may bear a share of responsibility for the loss. The fact that they were not the original promoter of the investment does not remove that responsibility. Their obligation was to advise the client properly, not to take the promoter's materials at face value.
What you need to bring to a review
Many people who contact Sold Short about UCIS cases have incomplete records, particularly where the investment was made several years ago. Documents have been lost, firms have closed, and the trail has gone cold. This is understandable and it is not a barrier to starting the process.
What matters at the initial stage is a broad understanding of what happened: roughly when the investment was made, who was involved, how much was put in, and what the outcome has been. From that starting point, a specialist can begin to piece together the rest, using available records, regulatory databases, and established processes for obtaining information from third parties.
Do not let the assumption of closure stop you
The sense that nothing can be done because a firm has closed is one of the main reasons people who have legitimate claims never pursue them. Sold Short exists in part to challenge that assumption. A free review takes the question off the table. You find out whether options remain, without cost and without commitment. If there is a viable route forward, we will tell you clearly what it looks like.
Sold Short reviews UCIS investment cases where clients received inadequate or misleading advice. Free review. No win no fee.
