Parliamentary Question addressed to the Minister for Finance

To ask the Minister for Finance if he will respond to requests for further compensation of those who set up a private pension and indirectly invested in a company now in liquidation (details supplied) in view of the fact that the Central Bank of Ireland apparently began monitoring the company from 2009 and the losses appear to have occurred after that date; if any other avenues of compensation are available to these persons who stand to lose a huge proportion of their pension and who can now only recover a maximum of EUR 20,000 through The Investor Compensation Company Limited; and if he will make a statement on the matter?

Reply

I understand that the Deputy is referring to Custom House Capital Limited; this company has been the subject of recent Parliamentary Questions.

The basic requirements for investor compensation schemes are laid down in the EU Investor Compensation Directive, which has been transposed into Irish law as the Investor Compensation Act 1998. The Directive, including the level of compensation across the EU, is currently being reviewed by all Member States at EU level. A formal Commission proposal, published in 2010, is still under negotiation.

The investor compensation scheme currently in operation in Ireland, is provided for in the Investor Compensation Act, 1998 and is operated by the Investor Compensation Company Limited. Apart from the pursuit of legal action against the firm concerned, there is no other avenue of compensation available to customers of the company

I am advised by the Central Bank that where it was aware of information relating to client investments and had substantiated its concerns, it ensured that Custom House Capital advised affected clients and reviewed the information that was provided.

I am further advised that in July 2011 the Central Bank received new information, previously unknown, which increased concerns regarding the integrity of client investments. The Central Bank, at that stage sought the appointment of High Court Inspectors to fully investigate the affairs of the firm.