Solar 21 in wind down

[Daughter]

My father invested a lump sum in a company called Solar 21 through pension advisors Clear Financial based in rathcoole. In the last year Solar 21 has had a number of financial issues and therefore are not paying out to investors. They received approval a week ago to sell off all of their assets (energy plants), and through that disposal all of their investors will receive their original capital outlay plus interest back. This sale is not 100% guaranteed but we’re being told very likely. The other option is the company goes into liquidation, and the pension investors will lose most of their money.

They’re estimating it will be Jan 2025 before any funds can be returned, and my father has not had any payout since 2022, so in total could be 30 months without an income.

My question is really is there anything else we can or should be doing? Or is it just a matter of waiting this out and living off the state pension?

Many thanks!

 

[Dave Vanian]

I note that Clear Financial and Solar 21 have the same CEO Michael Bradley and other staff that are common to both firms. Just wondering if Clear Financial made it clear to your father that they were effectively recommending an investment in one of their own companies?

 

[Daughter]

Yeah he said he knew this. They explained that he would get 10% drawdown a year for 20 years

 

[Brendan Burgess]

Some coverage here

UK government delays a key Solar 21 planning call crucial to Irish investors

The British government has pushed back a decision on a planning proposal by Irish renewable energy investment firm Solar 21 for a 650,000 tonne per annum energy-from-waste plant in North Lincolnshire, for which the company has raised £125m from Irish investors.

www.independent.ie

and here

High Court clears way for Solar 21 debt recovery

The High Court has sanctioned restructuring schemes for two companies in the Solar 21 renewable energy investment group.

www.independent.ie

 

[Daughter]

Thank you! The UK news adds further concern.
Is it just a matter now of waiting this out and hoping for the best, ie. A return of the initial capital outlay?

 

[Brendan Burgess]

Yes, that is as much as you can do now. But you should have received correspondence from the company telling you of the problems.

But it is a bit concerning that your pension advisor recommended an unregulated investment. What percentage of your father's pension was invested in it?

Brendan

 

[Realcork]

I think there is a significant issue with regulauted entities selling unregulated products . There has been dolphin, blackbee etc , all being sold by regulated brokers under some unregulated loophole

 

[Daughter]

He unfortunately invested 100% of his income in it. There was no discussion of spreading at all at the time it seems. He would have been in his late 60s then so to me they completely mis-advised him.

 

[Marsupial]

I think there is a significant issue with regulated entities selling unregulated products . There has been dolphin, blackbee etc , all being sold by regulated brokers under some unregulated loophole

Yep - and all hoovering up big fat sellers' commissions.

I hear that The Central Bank is (belatedly) considering doing something about it. But I'm not holding my breath, as tectonic plates move a lot quicker than it does.

(I investigated the possibility of suing my broker for flogging me Dolphin - given that he had a clear written instruction from me only to invest in low risk funds - but decided that I couldn't afford the legal costs involved if I lost; but it still sucks.)

 

[Brendan Burgess]

(I investigated the possibility of suing my broker for flogging me Dolphin - given that he had a clear written instruction from me only to invest in low risk funds - but decided that I couldn't afford the legal costs involved if I lost; but it still sucks.

Why didn't you go to the Financial Services Ombudsman? Quicker and would cost you nothing.

Brendan

 

[Marsupial]

Why didn't you go to the Financial Services Ombudsman? Quicker and would cost you nothing.

Brendan

Because you can't start there. You can only go to them when you've exhausted every other avenue.

 

[Brendan Burgess]

Hi Marsupial

You mentioned legal costs and you have no need to incur legal costs.

1) Complaint to the broker
2) If you are not satisfied with his explanation, then go to the Ombudsman.

on the surface of it, @Daughter should do the same. Maybe the broker has a perfectly good explanation and there is no grounds for complaint.

Brendan

 

[Fortune]

Because you can't start there. You can only go to them when you've exhausted every other avenue.

You only need to have exhausted the complaints process of the entity you're complaining about

 

[Marsupial]

You only need to have exhausted the complaints process of the entity you're complaining about

Sadly, the entity that I'm complaining about no longer exists.

(Apologies to Daughter for hijacking her Solar 21 thread - but I have a dog in that race too. )

 

[flyingfolly]

Had a similar issue with my broker recommending an unregulated investment. I asked for a very safe investment for 3 years for money we would use to pay off our mortgage with. He replied via a very similar, but slightly different email address, with a brochue for the invesment he suggested. The brochure did did state in it that it was unregulated, but there was no explanation of what that meant by the broker or mentioned at all.

I complained to the Central Bank and said I felt it was a bait and switch and they investigated and said there was no wrong doing.

The entire fund collapsed and all the money was gone. But hey at least the broker got his 10/20% of my money.

 

[Brendan Burgess]

I complained to the Central Bank

It was the Ombudsman you should have complained to.

 

[Brendan Burgess]

Sadly, the entity that I'm complaining about no longer exists.

But you were thinking of taking legal action against it anyway? I think it's non-existence is a bigger deterrent than the legal costs.

Brendan

 

[Marsupial]

But you were thinking of taking legal action against it anyway? I think it's non-existence is a bigger deterrent than the legal fees.

Brendan

I concur.

However at the time that I talked to the solicitors, the entity in question hadn't upped sticks and emigrated to the other end of the world!

 

[Brendan Burgess]

Is this similar to Dolphin Trust?

Dolphin Trust collapse - Wealth Options broker

I'm one of the 1,800 Irish suckers who took the German Property Group (formerly called Dolphin Trust) bait. :confused: Although initially hesitant about investing, I was convinced when my broker sent me the following assurance from Wealth Option Trustees (WOT):- "We hold first...

www.askaboutmoney.com

Settlement in Pensions Authority case over Dolphin Trust investments | BreakingNews.ie

WOTL acted as a trustee for some 1300 small self-administered pension schemes. Funds from 107 of these schemes were loaned on to GPG which was set up to buy and renovate listed and landmarked buildings in Germany.

www.breakingnews.ie

Pension funds investing in an unregulated product and losing their money?

Brendan

 

[Dave Vanian]

Is this similar to Dolphin Trust?

While I'm not a fan of either, I don't think the comparison is entirely fair. Dolphin Trust is under criminal investigation as a fraud - a Ponzi scheme. To date, there's no suggestion of fraudulent activity by Solar 21.