Financial services ombudsman report: what it says

The financial services ombudsman, Joe Meade, has rejected a complaint by a bogus non-resident account holder who claims her bank told her she would "have nothing to worry about" and that she should not avail of the 1993 tax amnesty.

The ombudsman found that even if the bank involved had assisted and facilitated the tax evasion, public policy prevented him from finding that the bank owed any duty of care to the customer, when her action was clearly illegal. Not availing of the 1993 tax amnesty is an offence.

The complainant eventually made a €900,000 settlement with the Revenue Commissioners in arrears and penalties relating to eight bogus non-resident accounts.

Mr Meade said yesterday that he had received several complaints from bogus non-resident account holders in relation to advice they had received from banks.

These complainants are sent a standard reply informing them that it is not a matter his office can investigate.

"If we can prove that the financial institution gave that advice, we will refer the case to the Garda," Mr Meade said.

But he cautioned that people should not expect to receive compensation for evading taxes.

As he released details of some of the 1,600 complaints received by his office in the first six months of this year, Mr Meade also warned that he would expect an extra duty of care from

financial advisers and firms in relation to elderly investors.

Consumers should be aware that advice accepted from friends claiming to be financial experts could affect their chances of compensation, as only regulated firms fall under his remit, he added.

Financial institutions are handling complaints in a more professional manner following recent publicity surrounding the publication of the financial services ombudsman's first annual report and High Court actions involving Irish Nationwide and Ulster Bank, Mr Meade said.

Earlier this month, the Supreme Court awarded the ombudsman further costs against Irish Nationwide.