Financial Services Regulation

Dáil Éireann Debate, Wednesday - 3 October 2012

Wednesday, 3 October 2012

Questions (55)

Shane Ross

Question:

55. Deputy Shane Ross asked the Minister for Finance the reason the Central Bank of Ireland should not compensate clients of Custom House Capital for moneys stolen from Pension Funds from March 2009 when they received information that Custom House Capital when not complying with the requirements of the Financial Regulator until July 2011 when they sought to seek the appointment of High Court Inspectors to investigate the affairs of the firm; and if he will make a statement on the matter. [42235/12]

Written answers

Minister for Finance

The compensation of investors is provided for in the Investor Compensation Act, 1998 and the investor compensation scheme is operated by the Investor Compensation Company Limited. There is no provision in legislation for the Central Bank to pay compensation in such circumstances. 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.