Dáil Éireann Debate, Tuesday - 28 February 2017
216. Deputy Brendan Smith asked the Minister for Finance if his attention has been drawn to the very serious concerns regarding the level of compensation being paid by a body (details supplied) to persons who lost major investments through a company (details supplied); and if he will make a statement on the matter. [9970/17]
Amharc ar fhreagraThe Irish Investor Compensation Scheme (the "ICS"), operated by the Investor Compensation Company DAC (the "ICCL"), originates from the EU Directive 97/9/EC ("ICSD") which requires each Member State to establish, on a minimum harmonisation basis, an Investor Compensation Scheme to ensure that small investors can receive statutory levels of compensation when they suffer losses to their assets as a consequence of fraud.
I have been informed by the ICCL that the €20,000 maximum compensation limit currently in place has satisfied the claims of the majority of small investors in the nine compensation cases that it has handled since 1998. On the basis of advice provided to the ICCL from Mr Kieran Wallace the Administrator of CHC, the average compensation payment in the case of CHC is estimated at circa €10,000 per investor.
In addition, I would like to note that since the failure of CHC in 2011 the Central Bank of Ireland has been provided with extensive new powers to help prevent the loss of client assets as occurred in that case. These powers relate to new rules for safekeeping of client assets, new rules in respect of key management positions and enhanced monitoring and enforcement powers for the Central Bank.
