Thousands lose chance for claim on mis-sold policies
TENS of thousands of people who may have been mis-sold investment policies have lost the chance to claim back money, following a Supreme Court ruling.
Many others should now act quickly to ensure they do not also lose the chance to claim compensation before a six- year limit runs out.
The Supreme Court ruled last week that victims of any mis-selling only have six years from the date they were sold investments to make a claim.
The High Court had previously ruled that victims of mis-selling had six years from the time that the investment finished. The case has not previously been reported.
The change means that people who bought investments during the boom years are running out of options when it comes to getting their money back.
"These investment funds were very much a product of the 2003, 2004 and 2005 years," said Eoin McGlinchey, a senior associate with law firm Lavelle Coleman.
"They were very common.
"Tens of thousands of people, if not hundreds of thousands, could be affected."
The decision does not affect the victims of fraud but it does affect the much larger group of investors who were sold products that were not appropriate for their age or risk appetite.
Many people unintentionally bought so-called geared funds, which borrowed to invest. After the financial crisis, many of these funds lost the entire investment.
The Supreme Court ruling follows a dispute over investments sold by ACC Bank called Solid World Bonds, which were funds that borrowed money to buy options on shares. The funds began in the early part of the last decade and continued to be sold until 2010.
Following the ruling, people who bought the funds in the early part of the past decade can no longer take part in a hearing that is due to come before the courts in November.
ACC has not been convicted of any mis-selling but some investors claim the investments were too risky.
While the Supreme Court ruling followed the case involving ACC Bank, it also applies to many other investment funds that may be guilty of mis-selling.