Cash Investment Decision Reference 2022-0184

• Case Outcome: Partially upheld
• Subject Matter: Cash Investment
• Reference: 2022-0184
• Date: 03 June 2022
• Finantial Sector: Investment
• Conducts Complained Of: Early withdrawal penalty ,Complaint handling (Consumer Protection Code) , Delayed or inadequate communication

Decision Ref:

2022-0184

Sector:

Investment

Product / Service:

Cash Investment

Conduct(s) complained of:

Early withdrawal penalty

Delayed or inadequate communication

Complaint handling (Consumer Protection Code)

Outcome:

Partially upheld

LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

This complaint arises from a communication to the Complainant regarding the ‘cooling off

period’ for the Provider’s investment plan.

The Complainant’s Case

The Complainant attended at the Provider’s office on 14 February 2020 and entered into an

investment plan with the Provider, in the amount of €62,203.23 (sixty-two thousand, two

hundred and three Euro and twenty-three cent).

The Complainant submits that he was reassured by the Provider’s Agent that he had a 30-

day cooling off period, within which he could change his mind on the investment. In a letter

to this office of 11 April 2021, the Complainant states that he understood the explanation

given by the Provider’s Agent on this date, to be the correct interpretation of a cooling off

period. He believed that he would be permitted to cancel his contract within 30 days, and

that “a penalty or loss to my investment would not apply”.

In an undated submission to this office, received with an email to this Office dated 15

February 2021, the Complainant says that he did not receive any documentation from the

Provider at their initial meeting or prior to commencing the investment on 14 February

2020.

- 2 -

/Cont’d…

The Complainant states that he received a phone call from the Provider on or about 8 March

2020 (though the Provider says that the date of this call was 2 March 2020). During this call,

he enquired about cancelling his investment. The Complainant submits that he was told that

a penalty would apply in that situation.

In his complaint of 4 June 2020, the Complainant notes that he received a follow-up call

from the Provider’s Agent with whom he had initiated his investment. This Agent informed

him that it was a very good time to invest, and the Complainant “reluctantly went ahead

with the investment”.

In reply to the Provider’s submissions, the Complainant reiterated that he was given a

reassurance that there would be no loss to his investment if he cancelled within the 30-day

period. He noted that he made no reference to an “exit penalty” during the phone call of 2

March 2020, and that he had not been confused, between the exit penalty and the loss that

may be suffered on the investment.

The Complainant stated that it was during this call that he first “learned of a “penalty” or

loss to my funds due to market fluctuations”. The Complainant relies on an email of 9 April

2020 from the Provider, in which it noted that this concept could have been explained in

further detail during the call of 2 March 2020.

The Complainant disputes the Provider’s contention that he did not request to cancel his

investment. He maintains that he made a request in an email of 3 April 2020 for cancellation,

with a full refund.

In relation to the Provider’s submission that the Complainant expressed an interest in

making a temporary investment, the Complainant states:

“Absolutely untrue. I decided not to go ahead with the investment referenced as

outlined previously as I was aware of the effect of the COVID virus, as it was then

referred to, may have on investments at that time and decided not to proceed on that

date.”

The Complainant reiterated that he did not receive an investment product booklet prior to

his investment of 14 February 2020. The Complainant relies on the wording of the section

entitled “WHAT HAPPENS AFTER I APPLY” in the product booklet, to argue that this

documentation is only provided to consumers after an application has been made, and not

beforehand.