Dáil Éireann Debate, Tuesday - 28 February 2017
215. Deputy Brendan Smith asked the Minister for Finance if his attention has been drawn to the delays in having claims for compensation finalised and submitted to a body (details supplied) for persons that lost investments with a company (details supplied); the measures he proposes to implement to eliminate these delays and have compensation payments made at an early date; and if he will make a statement on the matter. [9969/17]
Amharc ar fhreagraI have been informed that to date, the ICCL has received 1,977 claims for compensation from former clients of Custom House Capital Ltd (CHC). All claims received are passed to the Administrator, Mr Kieran Wallace, who is required to certify the compensable loss involved for each claimant, following which notification, the ICCL will arrange payment of compensation to the investors concerned.
As at 24 February 2017, the ICCL had paid out over €7.2 million to some 570 claimants. It is estimated by the Administrator that further compensation amounting to €12.9 million will arise in respect of the c. 1,407 claims still outstanding, resulting in a final compensation bill of €19.7 million. This amount has been fully provided for in the ICCL's accounts.
Under the terms of the Act the ICCL is obliged to pay compensation within three months of the certification of the relevant claim by the appointed Administrator of the investment firm concerned and notification to the ICCL. The liquidation and administration of CHC has proved to be a complex and protracted exercise partly due to a number of legal issues arising in the course of the liquidation of the firm.
Unfortunately, this has resulted in lengthy delays in the certification of claims by the Administrator. ICCL have been seeking to address these matters on an on-going basis and have made proposals to the Administrator regarding the acceleration of the certification process and are awaiting further developments.
During 2016 the Board of ICCL established a working group to formulate potential remedies to certification delays experienced in current claim cases. In November 2016 this working group issued a report to myself and the Governor of the Central Bank of Ireland wherein conclusions and recommendations were highlighted with the general objective of improving the outcome for the clients concerned.
While a number of the proposals put forward are being progressed by the ICCL, others would encompass amendments to legislation.
ICCL is currently consulting with the Central Bank, as the supervisory authority for investor compensation and once completed will then engage with my Department on these proposed amendments.
