Michael Collins (Cork South-West, Independent Ireland Party) | Oireachtas source

The role played by some financial advisers in this State needs to be investigated immediately. The issue of financial advisers taking people's money for investments and the client getting no return for that same investment is both a local and national one. The issue has been aired on RTÉ on more than one occasion, most recently in March on RTÉ's "The Complaints Bureau", which reported on how loan notes were given to clients by financial advisers in return for their money. These loan notes then appeared to be worthless even though they are covered by the Central Bank. Constituents in my constituency, the Taoiseach's constituency and throughout the country have lost millions of euro due to these financial advisers. I will give one example from the dozens I am aware of. Over 13 years ago, a constituent of mine who sought financial advice on clearing their mortgage was advised by a financial adviser to invest their money with the same adviser, who guaranteed returns to pay back the mortgage and also to make money.

This constituent made €40,000 on an initial investment of €50,000. They subsequently reinvested €45,000 plus another €105,000 over a period of time, bringing their total investment up to €200,000. Other family members were encouraged by the financial adviser to invest their money, which they did. This brought the total family investment to €360,000. The financial adviser promised to invest the money in trusted companies. This is where the scam starts. For this person, and so many more, the company went into liquidation, leaving my constituent and many like them in financial ruin. These same financial advisers then go and set up another company and continue to take investments from other innocent honest people without paying back what they took off previous people. To date, 11 companies have been set up by this financial adviser.

I will give examples of the sums of money people have lost. People have lost €10,000, €150,000, €350,000, €450,000, €700,000 and many similar amounts. My constituent has been looking for their money back since 2021. There have been 3,800 emails back and forth between the financial adviser and the constituent but no money has been paid. Frequently, the financial adviser promises to pay back the money but the scam goes on while these advisers drive around in the same neighbourhood with top-of-the-range Range Rovers, living lavish lifestyles.

Having been given reassurances by the financial adviser that they would get their money back, my constituent went to buy a house only to be subsequently advised the money was gone. This had a devastating effect on the constituent, who started to conduct their own investigation. They discovered there are hundreds, if not thousands, of people in a similar position. Many feel isolated, ashamed and lost as to where to turn. My constituent made a complaint to the ombudsman in June 2024 and is still awaiting an outcome. The Garda fraud squad has been notified. Loan notes and companies are regulated by the Central Bank. This raises the question as to whether the Central Bank is conducting checks on companies and their indemnity. Is the Central Bank conducting checks on the people who set up these companies? Should the Central Bank now be responsible for these people's losses?

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