Brewin Gobal Compliance Officer. 29 Oct 01
Ref Mrs Andrea Earl / Colin McCready Offshore Money Managers
Whilst I am awaiting your comments and a copy of your agents fact find on Mrs Earl. I would inform you that there are now two newspapers that have contacted me stating they have heard i am representing an 80 year old lady who has lost half her money by being put into a high risk equity. As yet I have not indicated the name of the IFA or your company. I have explained that two enquiries are taking place and promised to contact them when I have your comments.
I would also like to place on record that Mrs Earl is now apart from bad health feeling hardship. Tonight she has informed me that she is now required during the next 12 months to pay the sum of £280 a month to cover rent plus repairs and painting to the building. The apartment must now go up for sale. This does not include rates, taxes, electric, food, phone, etc.
You are aware that the matter has now been reported to the Gibraltar Financial Commission as per Colin McCready's written request to Mrs Earl dated 8 October.
I look forward to your early communication.
cc Gibraltar Financial Commission
Mrs Earls original application form with Labro Global Funds is dated
16th April 1998. with the IFA Mr Colin McCready. This was later changed to Brewin Global.
Looking at the investment I fail to understand why Colin McCready allowed this to slip away from 80K down to 43K. One would have thought that he would monitor this and keep in mind that the lady is 80 years old has no other money whatsoever and now not in good health Surely this investment could have gone into a holding account earning some interest within your organization!
At the initial meeting with Andrea Earl I question if under normal financial service good faith if a complete facts find which would in normal circumstances cover her risk requirements for income or growth was taken. if one was taken I would certainly like a copy of his.
Colin McCready has a duty of care. I do not believe in this case he has shown a duty of care. My concern is that the value as of today is £43571.00 and this shows that since March of this year until today a loss of some 14K.
I do not think it reasonable to expect at this great age those with no other capital to sit out an investment, I wonder if he would put his mother into such an investment and leave her in it with no other capital available!
The lady is 80 years old, she is unwell and has no other money? How is she to live?
I would mention that I level no complaint at the way the funds have been operated by Brewin, the complaint is simply that this is the wrong investment for a lady with no other capital and with a restricted income of approx £170 a week.
If a full fact find was taken surely in view of her circumstances this was mis sold. It is also not reasonable that an IFA can expect senior people of great age to take vast drops in investments when they have no other capital whatsoever. Old people do not have the years to sit out their investments.
For the records sake Colin McCready has indicated to others that I am getting paid and have an financial interest. This is not true, I have no financial interest and do not charge fees or expenses. I do not give financial advice .
I am seeking a fair compensation for Mrs Earl, I have no doubt she would agree that the funds should stay with Brewin but in a very safe investment and easily available.
I look forward to your comments in this matter.
Your trulyDavid Klein