Vol. 417 No. 6
96 Mr. Durkan asked the Minister for Finance if he will outline the total number of investment companies which have gone into liquidation, receivership or have ceased to trade in the past ten years; if he will further outline the losses, if any, to investors; the names of the companies involved; whether any have recommenced trading or have been taken over by other companies; and if he will make a statement on the matter.
There is no generally accepted definition of what could constitute an investment company. In its broadest interpretation it may include banks, building societies and a wide variety of institutions which provide financial services. Only some of these are subject to regulation.
In the past ten years one bank has failed, Merchant Banking Limited in 1982, with liabilities of about £4.5 million of which about £1.3 million related to depositors.
Information relating to building societies, prior to 1989 when the Central Bank assumed responsibility for these societies, is not readily available to me. However, I understand that one building society, the Irish Savings Building Society, was wound up by the High Court in 1984. A further building society, the Dublin Model Building Society, ceased trading that year also.
Out of a total of approximately 200 IFSC companies approved to date I have been notified that one company, which could be described as an investment company, may have ceased to trade. Until the position is clarified it would be inappropriate for me to name the company involved. The circumstances were such that the question of losses did not arise.
