Investment firm unable to meet client claims
Published 01/03/2016 | 02:30
Clients of a Dublin-based investment firm are set to be compensated by a State compensation fund.
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The firm had its authorisation withdrawn by the Central Bank last March.
The Investor Compensation Company Limited, which operates the statutory compensation scheme for investors, will write to the firm's clients.
Investors have until July 27 next to make a claim for compensation.
Central Bank executive Des Ritchie has been appointed as administrator to assess claims for compensation.
Asset Management Trust is understood to have had around 300 clients, and assets under management of between €30m and €40m, before the Central Bank began probing its operations.
The most recent filings in the Companies Registration Office show that the directors of firm are Robert Brickell and Gerard McCoy. It had an address at Fosters Avenue, Mount Merrion, Dublin. The Central Bank is understood to have begun inquiries into the company's affairs in 2014.
The Investor Compensation Company 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.
However, if the investments were in pensions or property, the losses are likely to be far higher than €20,000 per client.