Roche endorses concerns expressed by Age Action

The report of the Financial Regulator published on the 4th of February provides disturbing evidence that some insurance, investment and stock broking firms are behaving unethically by not observing the agreed customer Consumer Protection Code according to Minister of State, Dick Roche, TD.

“The report also highlights a continuing danger as to the suitability of investment products being sold by some companies to older customers.”

“The use by the Financial Regulator of ‘mystery shoppers’, independent third parties to examine sales practices is very welcome. It has given the Regulator a better insight as to what is happening on the ground.”

“The Regulator’s investigations indicate that a number of companies have attempted to sell investment arrangements to older people which are quite unsuitable for the circumstances of the potential customers. The investigations also show that in some cases key information regarding income and assets/liabilities were not properly recorded, information regarding the suitability of investments was not filed and potential customers were allocated inaccurate risk profiles. All of these bad practises put the savings of elderly people at risk.”

“The Regulator also found that some of the companies investigated failed to offer older customers the option of having a third party present at a sales meeting. This means that vulnerable people were left to deal with sales persons without the support which they are entitled.”

“It is clear from the report of the Financial Regulator that unacceptable practises are being applied by some in the financial services industry. Publication of the report of the Financial Regulator and the publication of the commentary by the Age Action Ireland will hopefully bring companies in the financial services sector to the realisation that they have not only a moral but also legal responsibilities in this issue,” Minister Roche said.