Protecting the elderly - Institutions must face penalties

WE have all heard of the cases where dishonest bank officials recommend financial packages to elderly people that will make it impossible for the investors to access their funds for a number of years.

Obviously these products are not designed for people who have passed a certain age and would not be offered to them by any advisor — or bank — who valued their integrity or customers’ rights.

Though not regarded as a crime this practice should be, the individual, as well as the institution involved, should face very stiff penalties. That it is not once again highlights our tolerance of white collar crime. Yesterday the Health Service Executive opened a discussion on the subject, suggesting that sector-wide and standardised safeguards be put in place as a response to the growing problem of financial abuse of the elderly.

The Irish Banking Federation (IBF) said it is happy to work with the relevant interests to protect older people from this kind of exploitation. Any co-operation is to be welcomed but this process cannot end with a regime of self-regulation by the financial institutions. That has failed too dramatically on too many fronts.

We cannot trust the banks to do it so we must, through legislation, do it ourselves.