Dáil Éireann Debate, Tuesday - 5 March 2019
136. Deputy Michael McGrath asked the Minister for Finance the position in relation to compensation for investors who lost significant amounts arising from their investment in a fund (details supplied); the position of the Central Bank in relation to the issue; and if he will make a statement on the matter. [10227/19]
Amharc ar fhreagraAs the Deputy will be aware this matter is the focus ongoing legal action before the courts. As such it would not be appropriate for me as Minister or for my Department to comment.
My officials contacted AIB and received the following response:
"Litigation relating to the Belfry property investment funds [the Second Belfry Properties (UK) plc, the third Belfry Properties (UK) plc, the Fourth Belfry Properties (UK) plc, the Fifth Belfry Properties (UK) plc, the Sixth Belfry Properties (UK) SA] is currently before the Courts. As the litigation is ongoing it is not appropriate for further comment to be made."
My officials contacted the Central Bank and received the following response:
“As this issue is being considered by the Courts, the Central Bank will decline to reply directly to this PQ."
The Central Bank provided the following "general contextual information" which may of use to the Deputy:
“The Investor Compensation Company (ICCL) can only begin to accept claims for compensation if a member investment firm of the Compensation Scheme has gone out of business, and, cannot return client assets or client money in accordance with legal and contractual obligations; and a Central Bank determination (decision) or High Court ruling declaring the member firm insolvent has been made under the Investor Compensation Act, 1998.”
“It is important to note that compensation cannot be claimed if the value of an investment has fallen due to market movements. Investing in shares and other investments carries a certain degree of risk. Sometimes these investments may lose some of their value. Occasionally, they lose all their value. We do not pay compensation where the value of an investment has fallen due to market movements, economic conditions or the operation of a provision in respect of the investment instrument concerned, for example, the expiry of an option.”
“The ICCL has not been advised of any Central Bank determination or High Court insolvency ruling in relation to the AIB Belfry Fund. The AIB Belfry Fund, of itself, is not a member of the ICCL operated scheme.”
