Danske Bank Funds

[NavanMan1]

Just got a call from an FA in National Irish telling me that the Danske Bank Funds that were launched here approx 12 months ago are been closed as there was such a low take up and the bank was losing money managing them.

The options are either liquidate and take whatever cash is left or invest in some other funds, so waiting for them to email me the info on what other funds they are agents for.

 

[PMU]

Just got a call from an FA in National Irish telling me that the Danske Bank Funds that were launched here approx 12 months ago are been closed as there was such a low take up and the bank was losing money managing them..

Interesting one this. Did the promotional literature, the terms and conditions, teh policy document or the sales man tell you that the funds could be closed if the take up was poor or if NIB was losing money managing them [is it Dankse Bank or NIB that says they are losing money?] If NIB did not tell you of the risk of fund closure if Dankse Bank or NIB were losing money or if the take up were poor, it may well indicate that they did not tell you of all the risks associated with these funds ,which is a possible infringement of the Consumer Protection Code of the IFSRA [broken link removed].

I suggest you write NIB a polite letter saying (a) that this risk of fund closure for these reasons was not brought to your attention when you invested in the fund and (b) in view of the fact that they did not disclose all relevant material to you when you invested that you are asking them to return to you all the money you invested. You should not complain that you have lost money but rather that they did not disclose all their terms of business to you when you made the investment and that key items (such as the risk of fund closure) were not brought to your attention. (Basically, if you end up making a complaint to the Financial Services Ombudsman [broken link removed] you need to show that NIB was non-compliant in some way – such as infringing the Consumer Protection Code.)

[FONT=&quot]Note that funds can be terminated and so can ETFs, but did the bank tell you of this risk when they sold you the funds? Of course, if this risk is listed in your policy document – you’re screwed.[/FONT]

 

[GSheehy]

I'm not so sure I would be too happy about either of the two options being presented.

Presumably, you invested in these funds with a medium to long term outlook in mind and there was some initial charge made on your investment. Simply being told that you can take the cash value after less than a year is inappropriate.

If you invested €10,000, and the fund is now worth €9,000, then there would be no tax liability. However, if you reinvested this €9,000 in another fund and it increased in value to €10,000 then you would have tax to pay on the gain of €1,000.

Staying in the same fund would not incur tax until such time as your existing fund exceeded the €10,000.

Unless, of course, the tax structure of the Danske Funds is different.?