Business Irish

Saturday 22 October 2016

Clients of Dublin-based investment fund to be compensated by official fund

Published 29/02/2016 | 12:46

Central Bank
Central Bank

CLIENTS of a Dublin-based investment fund are set to be compensated by an official fund.

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The Central Bank said it made the decision about Asset Management Trust as the firm will be unable to meet claims from clients.

In a statement, the Central Bank said it has “determined that it appears that the firm is unable for the time being, for reasons which are directly related to its financial circumstances, to meet its obligations arising from claims by clients and has no reasonably foreseeable opportunity of being able to do so”.

The Investor Compensation Company Limited, which operates the statutory compensation scheme for investors, will shortly write to the firm’s clients.

Central Bank executive Des Ritchie has been appointed as administrator to assess and will certify claims for compensation made by clients of the firm.

Asset Management Trust is understood to have around 300 clients, and assets under management of between €30m and €40m.

The Central Bank is understood to have begun inquiries into the company’s affairs in 2014.

The Investor Compensation Company Limited (ICCL) was set up to give private investors a way to claim compensation without the need for expensive legal action.

It is funded by levies paid by authorised or registered investment firms that are members of the scheme.

It can pay eligible investors 90pc of the money they have lost, up to a maximum of €20,000.

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