‘Serious error’ in ombudsman’s ruling over credit union’s €1m loss

THE Financial Services Ombudsman should have decided whether a company of investment advisers is entitled to see certain documents from a credit union before ruling on a complaint over the loss of the credit union’s entire €1 million investment in a bond which collapsed in value, the High Court has found.

Mr Justice Daniel O’Keeffe said the ombudsman’s failure to consider discovery issues raised by investment advisers McLoughlin & Staunton Ltd, Loughrea, Co Galway, was a “serious and significant” error that vitiated the Ombudsman’s decision upholding a complaint by Naomh Brendain Credit Union, Loughrea, against the company.

The ombudsman should now consider whether to order discovery of the documents sought (which include material related to the investment strategy of the credit union), he said.