How the ICCL Protects Investors

Circumstances in which the ICCL will pay compensation

The scheme will pay compensation where an authorised firm is unable due to its financial circumstances to return money or investment instruments owed to a client (i.e. where a 'trigger event' has occurred). Investors will be compensated if they are eligible investors and have dealt with a firm which comes within one of the categories covered by the Scheme and which has been properly authorised to conduct business. 

Click here to download our booklet 'Investor Compensation - Information booklet for investors'. 

Click here to go to our Frequently Asked Questions.

Limitations of the Scheme

The following are the main limitations of the Investor Compensation Scheme.

1.     You cannot claim compensation for losses arising from bad investment advice, poor investment management or misrepresentation.

2.     You cannot claim compensation for losses caused by a fall in the value of your investment because of market or other economic forces.

3.     You cannot claim compensation if you deal with a firm that is not a member of the Investor Compensation Scheme. (You can confirm whether a firm is a member of the scheme by contacting either the ICCL or the firm’s regulatory group. Click here to search our list of members.)

4.     The Investor Compensation Scheme is intended to help private individuals. The Scheme does not cover institutions and professional clients.

5.     We can only pay compensation in cases where we are told by the Central Bank of Ireland either:
a.          that it has determined that the authorised firm cannot meet its obligations to meet its investors’ claims;
or
b.          that an authorised firm has been the subject of a Court ruling that prevents it from returning money or investment instruments to investors.

6.     There are limits to the amounts we may pay in compensation. We can pay only 90% of the amount lost, subject to a maximum of €20,000, to each investor.

7.     Transactions carried out after 1 August 1998 are covered by the scheme. In certain limited circumstances, transactions before that date may also be eligible for compensation.

Categories of firm within the scope of the Scheme

The following categories of firms come within the scope of the scheme:

• investment firms and insurance intermediaries regulated by the Central Bank of Ireland
• stockbrokers regulated by the Central Bank of Ireland
• insurance brokers, agents and tied agents of insurance companies
• banks and building societies that carry out investment services and are licensed by the Central Bank of Ireland
• accountants certified by their professional bodies to conduct investment business
• credit unions that provide investment and, or, insurance services
• UCITS (undertakings for collective investment in transferable securities), management companies authorised to undertake individual portfolio management services.

The following firms and business are not covered by the scheme:

• insurance companies
• the deposit-taking business of banks, building societies and credit unions
• foreign firms selling their investment services into Ireland from abroad
• collective investment schemes such as unit trusts or UCITS not authorised to undertake individual portfolio management services.
  
  

If you are not sure whether the firm or business you were dealing with is covered, please contact the Central Bank of Ireland or the ICCL. You can also click here to search our current list of member firms.