THE FUND THAT handled investor compensation following the liquidation of IBRC and Custom House Capital (CHC) has said it is confident it can handle the collapse of another large company.
In its annual report, the Investor Compensation Company Limited (ICCL) said that while the collapse of these two companies resulted in a “particularly challenging” year for the fund, it saw an increase in available reserves of €2.2 million.
Chairperson Jim Bardon believes the organisation will be able to handle a company of a comparable size to CHC collapsing, for which claims amounted to €19.7 million, through a stand-by credit facility and the ability to make additional calls for levies.
The company raises revenue by collecting these levies from investment firms and retail intermediaries.
The annual report also estimates that payouts from the liquidation of IBRC could amount to as much as €2.6 million between more than 500 investors, according to KPMG.
€7.7 million in claims
It also confirms that all €7.7 million in claims were paid out to W&R Morrogh Stockbrockers investors at the start of 2013.
Earlier this year, the ICCL were unable to compensate a small number claimants in the collapse of Irish stockbroking firm Bloxham as the result of a decision by the Central Bank of Ireland and the Official Liquidator.
The ICCL was established in 1998 under the Investor Compensation Bill, although is not funded by the State.
Once certified to do so by an Administrator, the ICCL can pay out up to a maximum of €20,000 to investors who are eligible for compensation.
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