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CHAPTER 7

RISK

7.4.4Infringements of Statute Law
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(a)

First National, in the course of their business dealings with my wife and I, both in their own capacity as Financial Adviser and in their capacity as a tied Investment agent of Irish Life, showed want of due care in supplying the service of ‘Giving Advice’. They failed to advise my wife and I as to the Risk, and the extent of the Risk, associated with the Endowment Mortgage relative to the Repayment Mortgage. First National, in their own capacity, and Irish Life, as their principal, were therefore in breach of an implied term of our Contract.

(See Section 2.4.3: Supply of Services.)

(b)

In the context of Statutory Legislation Governing Investment Business Relating To Consumer Credit Transactions —— THE UNITED KINGDOM POSITION:

The conduct of both First National and Irish Life is such that they would be in breach of the Principles applicable to the ‘conduct of business rules’ as defined in the U.K. Financial Services Act 1986, and of specific requirements of the various Conduct of Business Rules issued by the SIB, LAUTRO and FIMBRA in accordance with those Principles.

On the matter of Standards —— First National, both in their own capacity as Financial Adviser and as the tied agent of Irish Life, did not act with due care in providing the service of ‘Giving Advice’. [See (a) above.]

On the matter of Disclosure —— First National and Irish Life did not give my wife and I such information as to the nature of the investment and the financial implications of the transaction as would enable us to make an informed decision. (See Section 7.4.3) Once again, this would be seen as a most blatant breach of Statutory Duty.


In the context of Statutory Legislation Governing Investment Business Relating To Consumer Credit Transactions —— THE IRISH POSITION:

First National were also in contravention of the express requirements of the Code of Conduct for Insurance Intermediaries as issued under title of the Irish Insurance Act 1989.

(i)

They did not observe the duties of disclosure incumbent upon them by the requirement that they act with the utmost good faith.

(ii)

They did not observe Statutory and Common Law legal requirements.

(iii)

They did not ensure that my wife and I were given information as to the suitability, scope and limitations of the Endowment Mortgage Contract.


(See Section 2.5 and Section 2.6: Statutory Legislation governing Investment Business relating to Consumer Credit Transactions.)






We are now ready to launch our attack on the heart of the pre-contract representations made by First National / Irish Life.

In the Chapters that follow, we will carry out a true, and wholly objective, Financial Analysis of the figures represented in their Mortgage Quotation Comparison (i.e. Case 1 of Appendix 1/2) as presented to me at my pre-contract meeting with First National. (See Section 1.2: The Experts’ Advice and Representations.)

In so doing, we will expose their Mortgage Quotation Comparison representation for what it truly is  ————  a paradigm of fraud.

 

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