Call for law change as CHC com­pen­sa­tion to take two more years

Irish Independent - Business Week - - FRONT PAGE - Donal O’Dono­van

LEG­IS­LA­TION is needed to limit how long in­vestors are left out of pocket when a reg­u­lated in­vest­ment firm fails, ac­cord­ing to the In­vestor Com­pen­sa­tion Com­pany (ICC).

The ICC was es­tab­lished to com­pen­sate el­i­gi­ble in­vestors when an in­vest­ment firm that had been reg­u­lated goes bust. Its most high­pro­file case has been deal­ing with the af­ter­math of the col­lapse of

Cus­tom House Cap­i­tal (CHC) al­most seven years ago. Most of the 2,000 in­vestors af­fected have yet to re­ceive com­pen­sa­tion. It could be two more years be­fore pay­ments are fi­nalised to all the vic­tims, ICC said in its lat­est an­nual re­port.

The ICC has paid out ag­gre­gate com­pen­sa­tion of €7.4m to CHC in­vestors, out of an es­ti­mated fi­nal bill of €19.7m. In the 12 months to the end of last July just eight CHC claims were val­i­dated; due to the com­plex­ity of the liq­ui­da­tion of CHC, ICC said. The res­cue fund can­not make a pay­out un­til each in­vestor claim is val­i­dated by CHC liq­uida­tor Kieran Wal­lace.

Leg­is­la­tion to pro­tect in­vestors does not in­clude a dead­line by which claims must be cer­ti­fied by an ad­min­is­tra­tor, ICC said. It has lob­bied for the law to be changed.

“It is clear that in the ab­sence of ap­pro­pri­ate leg­isla­tive and other change, it is prob­a­ble that in­vestors caught up in an in­vest­ment firm fail­ure of sim­i­lar com­plex­ity in the fu­ture could be re­quired to en­dure the long de­lays that have been borne by many CHC clients,” the re­port noted.

Newspapers in English

Newspapers from Ireland

© PressReader. All rights reserved.