# Bond went bust



## Clifden (12 Jun 2008)

Last year I placed money on deposit with a high street bank, I thought! However it turns out that it was placed in an ISTC Bond that went bust and much written about in the papers. Any advice.


----------



## LDFerguson (12 Jun 2008)

Was the ISTC bond wrapped in a policy by Friends First?


----------



## MugsGame (12 Jun 2008)

> I placed money on deposit with a high street bank, I thought!



Why did you think your money was placed in a deposit account? Did you ask for a deposit account product? What documentation were you provided with?


----------



## mercman (12 Jun 2008)

Funny that's the second time I heard about this product today. Apparantly, in the other case I heard it was sold as a deposit and the persons concerned intend taking action for a return of their capital.


----------



## Brendan Burgess (12 Jun 2008)

How much did you invest? 

You can make a complaint to the Ombudsman if you were misled about the product. I think his limit is €250k. 

Brendan


----------



## Ravima (13 Jun 2008)

You either placed it in a deposit account, or a bond. You cannot have done both as no Irish bank has gone bust.

If a boond, then you signed some documentation. You should have read it. You may have a clmplaint against the seller/institution, but you should bear in mind that you yourself must also bear some responsibility.


----------



## Elphaba (14 Jun 2008)

Level of risk ISTC bond clearly unidentified, I have been watching this story unfold, from news in Sunday Times. I know someone who's lost a lot of money. A few weeks ago Brokers were said to have refunded invetsors who lost in cases where product deemed unsuitable. The ISTC is an unregulated financial institution, seems brokers did not do their homework?
However bottom line, ultimate responsibility lies with Friends First. This bond was given Trustee Status, which means, it was not high risk, so for people or institutions, needing this guarantee, they were duped, 
In the case of the OP, check all the small print very carefully. Seems v. strange that you not aware they invested your money in ISTC bonds on your behalf?


----------



## mercman (14 Jun 2008)

As well as my previous post, I too was picked by an institution to place money into ISTC. I declined at the time as I thought it was high risk although the institution tried to assure me it was not. Dig your heels in and go for getting your money back


----------



## Clifden (18 Jun 2008)

Yes, Bond wrapped in a policy by Friends First.


----------



## Clifden (18 Jun 2008)

Yes, the bank have said that I can complain to the Ombudsman.


----------



## Clifden (18 Jun 2008)

Yes, I signed documents. I was assured that the capital was safe. My initial request was for a deposit account. The broker rep has since said that they  thougt it was secure.


----------



## Clifden (18 Jun 2008)

There ws no mention of where it was going except that the capital was safe as I instructed!


----------



## Clifden (18 Jun 2008)

Thanks for your reply. Yes I was also assured that the deposit was secure. The local branch are saying that its out of their hands.


----------



## Clifden (18 Jun 2008)

I have been in regular communication with the local First Active branch that sold the policy but they are claiming that they, locally, were innocent as regards knowledge of the risk.


----------



## Bronte (18 Jun 2008)

Clifden - what documentation did you sign, do you know?


----------



## LDFerguson (18 Jun 2008)

Friends First are resolutely not offering any compensation, being of the opinion that if there was a lack of information to investors, that was the responsibility of the seller.  

However, some intermediaries have refunded investors themselves, so I'd suggest that this is the route you should pursue.  See [broken link removed].  

In the first instance, make a written complaint to First Active requesting a return of your original investment plus interest, on the grounds that you were not informed of the risk involved and were of the belief that your money had been placed on deposit.  If you are not satisfied, take your complaint to the Financial Services Ombudsman.


----------



## Complainer (18 Jun 2008)

Clifden said:


> I have been in regular communication with the local First Active branch that sold the policy but they are claiming that they, locally, were innocent as regards knowledge of the risk.



Forget this distinction between FA locally and FA head office, and don't let them away with playing that internal blame game. Your complaint is against FA as an organisation. 

If the head office guys didn't understand the risk, they shouldn't have been selling the product. If the local guys didn't understand the risk, they shouldn't have been selling the product.


----------



## tink (18 Jun 2008)

Hi, I work for an investment company and we sell our products through brokers and it is up to the brokers to explain the product and they have to write the client a letter saying why the product is suitable, not clear on what the 'broker rep' is but the broker themselves have missold a product but as mentioned before you have to accept some of the blame as you obviously did not read any of the documents issued by the company who provide the product such as 'the value of your investment may fall as well as rise' etc therefore implying it was not capital proctected. There are strict laws surrounding the selling of products now and if you can prove it was missold fair enough although usually it is more obvious cases which win large awards with Ombudsman e.g. a 75 year old being sold a 10 year investment bond etc and they recovered some but not all of the money.


----------



## mercman (18 Jun 2008)

tink, Strict laws about selling products -- what a joke. The entire structure of selling investment products in this country is a farce. The matter of bonuses for lump sum investments, commissions on sale, annual commissions, management charges is a complete mystery to those that are investing. And as for the best or right deal, it boils down to basically how loud the investor shouts. And please don't try and tell me it is any different. 

Look at clifdens case -- dealt with a high street name and is been pushed between head office and branch office. What a charade.


----------



## Clifden (23 Jun 2008)

Dont know what docs I signed.


----------



## ClubMan (23 Jun 2008)

Clifden said:


> Dont know what docs I signed.


Did you not get/keep a copy!?!


----------



## HamieC (27 Jun 2008)

Have people been sorted out by First Active - does anyone know somebody who has? It was quoted in the Sunday times and the Irish Independent that the Financial Services Ombudsman said that First Active have settled with some clients.


----------

