A leading stockbroking firm mismanaged an elderly widow's €1.5 million investments, the Financial Ombudsman revealed today.
The company was found guilty of negligence and breach of duty and ordered to pay the client, in her 70s, some €18,500 compensation.
She complained to the ombudsman, Joe Meade, that she wasn't told how a particular bond worked and was encouraged to take high risk shares against her wishes.
The pensioner was led to believe she was getting a tax-free income when in fact she was being paid back her own money, while the investment devalued.
She was also wrongly told that she would face penalties if she tried to get out of the investment before a decade had passed.
The company was told to change its procedures immediately so as to make clearer charges imposed on investments.
The decision was among several upheld complaints against financial institutions made public today by the Financial Services Ombudsman.