Stages in the Compensation Process

Stage Description Lead Role Estimated Stage in the Timeline
1 Pre-Trigger Event Central Bank of Ireland Unknown
2 Trigger Event Central Bank of Ireland Day 1
3 Claim Application Issued ICCL Within 30 days of (2)
4 Claim Application Submitted Claimant Within 150 days (2)
5 Claim Application Processed ICCL Usually within 30 days of receipt by the ICCL
6 Administrator's Review of Claim Administrator Uncertain
7 Notification of Administrator's Decision ICCL Within 30 days of (6)

 

 

Pre-Trigger Event


•Client makes a complaint to the Central Bank about the return of their assets etc. or a Central Bank inspection discovers issues with client assets at a firm;


•Central Bank investigates a firm and determines that the most appropriate course of action to resolve matters in the interests of clients is to petition the High Court to appoint a Liquidator.

 

 

Trigger Event


•Central Bank makes a determination that a firm is unable to return client assets, or,


•High Court makes a ruling preventing the firm from returning client assets (places the firm in Official Liquidation), and, appoints an Administrator for the purposes of the Investor Compensation Act, 1998.

 


Claim Application Issued


•The ICCL will request the list of clients from the Administrator of the failed firm;


•On receipt of the listing, the ICCL will issue claim application forms to all clients recorded in the records of the firm as having conducted investment business;

 

•Separately, the ICCL can issue claim application forms to unrecorded clients on request.

 

•The ICCL also publish notices in national newspapers giving notice of the firms failure and inviting applications for compensation from clients of the firm.

 

Claim Application Form Submitted


•You submit your claim application to the ICCL within 5 months of the "Trigger event" date.

 

 

Claim Application Form Processed


•ICCL review your claim application form for completeness;

 

•ICCL will contact you if additional information is required or ommissions noted;

 

•On forwarding your claim application to the Administrator for review and certification of any compensation amount, the ICCL will advise you that your claim has been submitted for certification.  There is generally no further contact directly from the ICCL with you until the Administrator certifies your claim.

 

 

Administrator's Review of Claim


•The Administrator must review your claim with a view to determining if a loss has occurred that is compensatable;


•If a loss has occurred that ICCL can compensate for, the Administrator advises the ICCL and certifies your claim application;


•This stage usually takes the longest as it leverages on the liquidators reconciliation work in respect of client assets.  Progress with the reconciliation work can be delayed due to legal argument/court proceedings between the creditors of the failed firm and the official liquidator in terms of approach and/or costs.

 


Notification of Administrator's Decision


•The ICCL will write to you as soon as possible after being informed by the Administrator of the certification of your claim.

 

•The letter from the ICCL will enclose the relevant compensation payment  as certified by the Administrator.  Not all certifications will result in a compensation payment, a certification could be a rejection of a claim on the basis that a claimant is ineligible to claim compensation or because no loss has arisen because assets have been returned etc.


•It usually takes approximately 2 weeks from the date of notification by the Administrator to receipt of correspondence from the ICCL.