Evrgreen Fund ( again )

[ArtVanderlay]

I realise the evergreen investment fund can be a hot topic around here and I have carried out some searches on the matter but I'm just looking for advice to make sure I have my bases covered ........

My parents came into a lump sum two years ago and (holding no bank account) my siblings and I encouraged them to visit our local bank to open an account and maybe invest some of the money in a guaranteed scheme.

My father who was then 73yrs old and had never even held a bank account arranged to meet the fund manager from our local BoI. He knew this man socially from both being members of the same golf club. To cut a long story short my father came to me recently and asked me to help him with some financial matters.

It seems he was advised to invest his entire 50k lump sum in the Evergreen fund. He informed the bank agent he would need to make regular withdrawals to cover living expenses as his sole income was the state pension. He was advised to enter a fund with no capital guarantee as this would allow him to withdraw money for a nominal fee. It looks as though by last September his investment was worth 12k, I believe he had withdrawn 20k in the 2yrs so the 30k that should be left is now worth 12k.

I have yet to meet the bank agent or grasp fully my fathers finances but this is causing him great worry so I intend to move as quick as I can to assess the situation.

Would my father have a case with the financial ombudsman. The bank were aware my father was 73yrs old so why sell him a long term investment ? equally why sell him an investment when it's in writing that he would need to withdraw money to cover living expenses ?

I am presently trying to arrange a meeting with the new fund manager , from there I believe I need to write to the banks compliance officer and from there I need to see the banks area manager , after this I can complain to the financial ombudsman.

Am I correct in this and do I have a case worth bringing. I am inclined to pursue regardless as I believe they were reckless with my parents money and should at least have to explain the reasoning behind the advice given. Am I being naive ?

 

[within29]

I am having the same problem. My Aunt who is 60 was sold Guaranteed Evergreen Fund. Same as your father no bank a/c etc. I believe she was mis sold the policy. Went to bank, had meeting no result. So its in the hands of the Fin Omb.

 

[no11rugby]

The complaint procedure is straight forward. A complaint letter needs to be sent from your parents to Bank of Ireland. BOI will investigate the matter and most likely come to the conclusion that your parents were sold the investment in good faith and that your parents were well aware of the risks when they invested their money.
Once your parents get a response from BOI you can then go to the Ombudsman if the response is not satisfactory.
The case will hinge in what your parents have in writing. If they have written documentation that they would need to withdraw funds from the investment to cover living expenses then it looks fairly clear that the product was mis-sold as the evergreen has a recommended investment time frame of 5 years plus and is not suitable for taking regular withdrawals. They might also have a case concerning their age and that they were not advised to go into a guaranteed product.
I would say get them to write the letter with all their complaints on it. See what BOI say and if it is not satisfactory go to the Ombudsman.