Dáil Éireann Debate, Tuesday - 15 January 2019
214. Deputy Michael McGrath asked the Minister for Finance the number of individual investors here who are deemed to be eligible investors under the Investor Compensation Act 1998; if the Central Bank publishes such data; and if he will make a statement on the matter. [1172/19]
View answerThe Investor Compensation Company DAC (ICCL) is an independent body established in accordance with the Investor Compensation Act 1998.
The ICCL is Ireland’s statutory ‘fund of last resort’ for the clients of authorised investment firms.
The Act prescribes that the ICCL shall pay compensation to clients of specified categories of investment firms where a firm is unable to meet its financial obligations to those clients. The compensation obligation of the ICCL is restricted to “eligible clients”, who are clients which don't fall under the definition of professional or institutional investors.
There are currently 3,410 authorised investment firms that are in scope for the purposes of the Act.
In respect of eligible clients’ investments, the compensation obligation relates to eligible client money held and eligible client investment instruments held, administered and managed in connection with the provision of certain investment services, that the failed investment firm is unable to return to the eligible investor in accordance with legal and contractual conditions applicable.
The compensation obligation is limited to 90% of the eligible investors’ net loss, subject to a maximum compensation payment of €20,000 per eligible investor.
Neither the ICCL nor the Central Bank of Ireland collect information on the number of eligible investors under the Act.
